Balcanoona

The losses incurred by global financial industry because of the current economic recession are expected to total to over $4 trillion. This is in accordance to a report released by the International Monetary Fund or IMF.

The rest is here: 
Global Financial Crisis To Cost $4 Trillion

.

COMMONWEALTH BANK is seeking to cut the $2.1 billion price that it paid to buy BankWest four months ago because its new subsidiary has had to significantly raise its level of impairment charges to cover increasing bad debts.
The country’s biggest lender, which picked up the growing regional lender as a direct consequence of the financial problems experienced by BankWest’s former British parent, HBOS, has activated a clause in the sale agreement that allows it to have the original price independently reviewed.
It is understood an independent expert will review the claims from both sides.
It triggered the arbitration arrangements after BankWest had to top up its total provisions for bad and souring debts following the completion of its annual accounts by CommBank’s auditors.
CommBank’s claim is now against Lloyds Banking Group, which took over HBOS as part of the rescue of the deeply troubled bank that was orchestrated by the British Government. About $200 million is thought to be at stake. Lloyds subsequently increased the provisioning within HBOS once its own auditors had combed through its loan books. As a result, the bank, based in Western Australia, recorded an overall loss of $139 million.
BankWest said yesterday that its charge for impaired loans had risen to $825 million for the 12 months to December 31 last year.
It said impairment charges and losses for its entire Australian division, which then included BankWest, had totalled £345 million ($709 million at current conversion rates) over the same period.
That is a marked difference to the figures HBOS provided in its most recent set of accounts. BankWest and the St Andrews insurance business, snapped up by CommBank in the same deal, turned in a profit of £90 million ($185 million) out of total Australian division net earnings of £206 million.
It was also contrary to the earnings made by the Australian business, according to HBOS’s own figures.
However, according to CommBank’s statement yesterday, BankWest suffered a $324 million turnaround as a result of the review of its financial performance by the group’s auditors.
However, according to CommBank’s statement yesterday, BankWest suffered a $324 million turnaround as a result of the review of its financial performance by the group’s auditors.8 million to $825. That jumped from $87.
Total provision for the year was $895 million, of which $494 million was set aside for its collective charge.3 million as CommBank sought to bring BankWest’s level of provisioning up to that of its own position. . The rest was made against specific loans.

.

The Telstra board faces a real dilemma – its government is in tatters and there is no ready-made or easy solution. Its biggest shareholder, the Future Fund, has made known its dissatisfaction with both the management’s and the board’s handling of Federal Government relationships and its transformation program.
John Stocker has always been something of an outsider around the board table – he is a scientist by trade and previously ran the CSIRO.
However, the Herald is aware that one member of the existing board is said to have dissented on the strategy to engage in a regulatory brawl with the Government.
His position as a sometimes outsider within the boardroom has potentially provided unhappy shareholders, like the Future Fund, with a candidate to lead what they hope will be serious board renewal. While the public and shareholders have never been given any sense that he has not always been in unison with the board’s approach of attempting to bludgeon the Government and regulators into submission, he is seen by some influential shareholders in a different light. But the Supreme Court judgment condemning the James Hardie board, of which Willcox was a member, for providing false or misleading information will have put an end to such aspirations.
Until last week Peter Willcox would have been the most likely candidate to take over at the helm of Telstra’s board – he was acceptable to the Future Fund and was ahead of the pack on experience and credentials. Ultimately he would lead the board in a renewal program that might take two years.
If Stocker’s appointment is acceptable it would not be a long-term outcome. They include the former National Australia Bank chief executive John Stewart, who, as an offshore resident, is considered unsuitable to chair the telecommunications giant.
Neither of the new-blood board members are said to be in the running. .
There is certainly an argument that Telstra should have some stability in governance and that the current board should not be tipped out too quickly.
This may become clearer in the next few week weeks as Telstra decides on a replacement for its chief executive, Sol Trujillo.
Having said this, how or even whether this board rebirth takes place depends on whether the current board is prepared to accede to the views of some unhappy shareholders, including the Future Fund. He is also considered to have a better relationship with the Rudd Government.
The Future Fund would probably prefer the head of Telstra’s corporate and government division, David Thodey, as he is considered less tainted by previous decisions. No one seems to be predicting an outsider as a serious contender.
If, however, Telstra’s board chooses the current chief financial officer and candidate considered closer to the board, John Stanhope, then the battle lines may be drawn. But there is little doubt that the real hits are just around the corner.
At this point the potential battle of the wills between the incumbent Telstra regime and that of its major shareholder feels more like a few rounds of shadow boxing.
Statements by Telstra following the Government’s decision to build a brand new competing network certainly suggest that the board has become much more compliant.
The current chairman, Donald McGauchie, who is clearly a target for the Future Fund and other disaffected shareholders, could decide to take on the fight.
If the board wants to take on the Future Fund it will be a battle of the titans that will ultimately be played out in the public arena.
If the board wants to take on the Future Fund it will be a battle of the titans that will ultimately be played out in the public arena.
Neither side will be keen to see this, but at this stage there is no suggestion that either side will back down.

.

THE recent rally in the Australian sharemarket may still peter out under pressure of the worsening economy, the listed fund manager BT Investment Management indicated yesterday. Investors were likely to sit on their cash until real signs of improvement emerged, it said. .
While the long-term outlook for recovery was markedly better than a few months ago, the short-term picture was much cloudier given Australia was only now entering recession behind the US, Britain and Europe, said BT’s chief executive Dirk Morris.
“The Australian economy probably lags behind the rest of the global economy, and there’s probably more bad news to come,” he told analysts.7 million on the back of the fall in financial markets, Mr Morris said cash investments would keep rising for the time being.

.
But it was not enough to stop a big rise in BTIM’s share price of 40c, or 25 per cent, to $2

A source close to the situation told this newspaper that after a lengthy meeting with executives yesterday where it was explained that due to the global financial crisis , export markets were shrinking, the employees were informed that …

View post: 
Precision Woodworking sends home workers

A source close to the situation told this newspaper that after a lengthy meeting with executives yesterday where it was explained that due to the global financial crisis , export markets were shrinking, the employees were informed that …

More here:
Precision Woodworking sends home workers

sideshow76’s status on Thursday, 30-Apr-09 08:48:44 UTC.

Read the rest here: 
sideshow76: Global financial crisis, climate change & swine flu …

markpmcdonald: The economy has an acronym GFC — global financial crisis — surely that means that we are heading to bottom but will we hit hard? 2009-04-30 03:53:14 · Reply · View. enricprologix: I just updated my Squidoo page: Financial …

Continued here: 
Twitter Tweets about financial crisis as of April 29, 2009

In recent months, our minds have focused prominently on the global financial crisis and how best to revive our economies.

Read the original:
Speech by FS at "Hong Kong – an International Financial Centre …