FMA investigates whether banks breached financial markets laws on interest rate swaps to farmers

The Financial Markets Authority, New Zealand's markets watchdog, is investigating whether the sales and marketing of interest rate swaps by major banks to rural customers may have breached financial markets laws. The FMA is working with the antitrust regulator, the Commerce Commission, to see if the banks have breached laws including the Securities Act 1978 and the Securities Markets Act 1988, th…

  • FMA investigates whether banks breached financial markets … BusinessDesk - 18 minutes ago

    The Financial Markets Authority, New Zealand's markets watchdog, is investigating whether the sales and marketing of interest rate swaps by major banks to rural customers may have breached financial markets laws. The FMA is working with the antitrust regulator, the Commerce Commission, to see if the banks have breached laws including the Securities Act 1978 and the Securities Markets Act 1988, the watchdog said in a statement. The Commerce Commission began its probe in 2012 on concern banks had misrepresented swaps to rural customers and has said it plans to file legal proceedings against the Australian-owned ASB Bank, ANZ Bank New Zealand and Westpac New Zealand, citing possible breaches of the Fair Trading Act, and said it was also looking at other institutions which sold the swaps.

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  • Wheeler hikes OCR to 3 percent on inflationary pressures, … BusinessDesk - 1 hour 15 minutes ago

    Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that's picking up pace and he's watching the impact of a strong kiwi dollar on import prices. "Spare capacity is being absorbed and inflationary pressures are becoming apparent, especially in construction and other non-tradable sectors," Wheeler said in a statement. He lifted the OCR 25 basis points to 3 percent, saying interest rates need to be at a level where they don't add to demand so as to keep inflation expectations contained. "The speed and extent to which the OCR will be raised will depend on economic data and our continuing assessment of emerging inflationary pressures, including the extent to which the high exchange rate leads to lower inflationary pressure," he said.

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  • $A slightly higher after CPI fall AAP - 1 hour 41 minutes ago

    The Australian dollar is slightly higher, but is struggling to bounce back from the losses made after the March quarter inflation figures came in weaker than expected. At 0630 AEST on Thursday, the local unit was trading at 92.88 US cents, up from 92.80 cents on Wednesday.

  • While you were sleeping Wall Street slips BusinessDesk - 2 hours 7 minutes ago

    Wall Street fell as disappointing earnings from companies including AT&T made investors cautious in a market trading near record highs. Later on Wednesday, Apple and Facebook are scheduled to report their quarterly results. In afternoon trading in New York, the Dow Jones Industrial Average slipped 0.11 percent, the Standard & Poor's 500 Index fell 0.18 percent, while the Nasdaq Composite Index dropped 0.74 percent. "These next few days are the most important of the earnings season as some big bellwethers report," Heinz-Gerd Sonnenschein, an equity market strategist at Deutsche Postbank, told Bloomberg News.

  • NZ dollar little changed before RBNZ interest rate … BusinessDesk - 2 hours 10 minutes ago

    The New Zealand dollar was little changed ahead of the Reserve Bank decision on interest rates today as traders await clues to the pace of the tightening cycle. New Zealand's central bank is expected to hike rates for the second month in a row, taking the benchmark to 3 percent. Last month the RBNZ became the first major central bank to raise interest rates since the global financial crisis, and signalled more hikes were in the pipeline as it attempts to head off inflation. Still, traders are mulling whether the bank may slow the pace of future hikes after a decline in dairy prices and lower than expected inflation.

  • OCR rise at farmers' expense Newstalk ZB - 2 hours 44 minutes ago

    Farmers and rural landowners are reluctantly accepting the likelihood of another rise in the Official Cash Rate today.

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