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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: David Murray Financial System Inquiry - The debate over Australian Capital Rules

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http://www.theaustralian.com.au/business/murray-creates-confusion-says-cba-as-it-reports-record-87bn-profit/story-e6frg8zx-1227023515075

Murray creates confusion says CBA as it reports record $8.7bn profit

  • by:MICHAEL BENNET
  • From:The Australian
  • August 14, 2014
  • COMMONWEALTH Bank has pushed back against the initial findings of the Murray financial system inquiry, arguing “further confusion” was being created about the banking sector’s strength while labelling it critical that firm rules were in place surrounding how much capital banks were required to hold.

Handing down a record $8.7 billion cash profit, chief executive Ian Narev yesterday said he still backed the process of holding a major review into the nation’s financial system.  The inquiry’s interim report released last month flagged a raft of potential headwinds for the major banks, including the prospect that the big four lenders may have to hold more capital on their balance sheets.  “I don’t think we came into the inquiry thinking we’re going to get a whole lot of free kicks,” Mr Narev conceded to The Australian.  Mr Narev said the debate over appropriate capital levels wasn’t about “whose numbers are right, whose numbers are wrong”. The banks believe they are some of the most capitalised in the world, not “middle of the road” as suggested by the inquiry..................

“The question in our mind is it’s an example of the confusion that can be caused when we are talking to overseas investors in places like the US, Asia and Europe when they are comparing the capital strength of banks as they do when they are deciding who they want to give funding to,” Mr Narev said.  “It’s absolutely critical that out of this inquiry we agree on a way to represent the capital strength of Australia’s banks correctly and fairly but also in a way which shows them in the best light possible because that’s good for the overall strength of the economy.”  His comments mark the first considered response to the inquiry’s interim report by a senior banking boss, as the industry prepares to finalise their views on the landmark review.

Revealing confidence in the amount of capital sitting on its balance sheet, CBA will “neutralise” its dividend reinvestment plan by buying shares on market and transferring them to shareholders, a move that surprised analysts at UBS..................

http://www.forbes.com/sites/investor/2014/07/24/why-are-stocks-still-rising-is-this-a-bubble/

24 July 2014

Investors often ask me, “why is the stock market still going up after five years?” They think it must mean ‘prosperity is ahead.’ Actually, it’s largely due to financial engineering: stock buybacks.

It’s important to see who has been doing the big buying. The only big buyers of stocks over the past five years are the Sovereign Wealth Funds of countries and corporations buying back their own stocks (buybacks). The amount is well over $1 trillion per year. Every other traditional large buyer category has been a net seller for the past five years.............Such huge buybacks have never been done before in history. Instead of using the money for developing new products, or buying companies that are complementary, they buy their own stock certificates. That’s not the path to sustainable growth...............

Buybacks do nothing for the value of a company. It just reduces the number of shares outstanding. It’s a financial maneuver to increase the “earnings per share” in order to boost the stock price........... That makes the stock options of management more valuable. It often hides the fact that total company earnings are not rising and may even be declining. But naive stock buyers don’t realize this.............In the first quarter of 2014, stock buybacks among the S&P 500 companies increased 59% from the same quarter a year ago, totaling $159.3 billion. This amount was exceeded only by the amount of stock buybacks in the third quarter of 2007, the top of the market before the financial crisis.

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