ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) lead the Australian share market and ALL ORDINARIES (INDEXASX: XAO)(ASX: XAO) index lower on Thursday.
All Ordinaries: down 0.2% at 6,027 points
All Ords Movers
- Reece Ltd (ASX: REH) – up 4.9%
- Rio Tinto Limited (ASX: RIO) – up 2%
- Brambles Limited (ASX: BXB) – up 1.5%
All Ords Losers
Australian Investing News
Making waves around Aussie financial markets was news from the Royal Commission into the banks. Today was the second day of hearings.
Of particular note, CBA said its broker customers pay more on their loans compared to other customers, acknowledging there was a potential conflict of interest. “The larger the loan, the larger the upfront commission,” CBA’s Daniel Huggins said.
“The longer the loan takes to pay off and the larger it is, then the larger the trailing commission and that can lead to a conflict — that is a conflict — between the customer and the broker.”
CBA has been the focal point of a number of allegations in recent times, with repeated reports of misconduct and poor advice given by its staff.
Yesterday, it was revealed that around 15% of NAB’s home loans didn’t meet the standards of the bank’s own lending policy.
Also making headlines today was the recent announcement of Labor’s proposed changes to franking credits. Labor plans to scrap franking credit refunds if it is voted into Government. Read more here.
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