It was ANZ Bank's chief teller, Shayne Elliott's turn to say "sorry" at the banking inquiry in Canberra. But it was the deputy chairman, Labor's Matt Thistlethwaite, who cut through the mea culpas, with some dazzling questions to end the session.
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ANZ boss admits mistakes
Incorrect fees charged to customers, poor banking culture and financial planners breaching the law are some of the issues raised at the parliamentary banking inquiry.
In fact, Elliott copped a verbal rocket, so to speak. In an exchange, late in the session, which worked like a double-shot long black for CBD, Thistlethwaite asked Elliott if he'd heard of the "rockets and feathers" hypothesis.
"Um, no," said a clearly bewildered banker.
"This is the hypothesis by economists which states that when central banks lift interest rates then big banks generally pass them on like rockets straight away. But when central banks reduce interest rates, they drop like a feather, in other words it takes a lot of time. An economist who did an analysis, Professor Abbas Valadkhani, about the latest rate cuts, it's true that by delaying rate cuts to your customers, the bank makes a profit out of that don't you?" he asked the minister.
We looked it up and Professor Abbas Valadkhani is the Swinburne University of Technology economist.
"Mr Valadkhani's analysis of the latest rate cut in August 2016 says that your bank took nine days to pass on the actual cut from the day it was announced by the RBA. I will give you this, you were the best out of the big four. You took nine days, CBA 16 days, NAB 16 days and Westpac 20 days ... his analysis is that by doing this you made $7 million. That's a profit for the bank of seven million dollars. That's true, isn't it?"
To which Elliot replied: "Well I don't know I'd have to look at the maths."Â CBD can only surmise that an ANZ Bank staffer may also being saying sorry when the boss comes a calling.
Heart attack
CBD thinks it might be nearly time to bring out the defibrillator for shareholders in beleaguered aged care group Estia Health.
The company has caused quite a few investor heart attacks in recent times.
On Wednesday the group went into a trading halt ahead of its releasing information about the company's first quarter. Estia has been conducting a review into federal government clarifications on the fees aged care operators charge.
The news is not expected to be good and Estia looks like it will soon be moved to the palliative care ward.
Estia has lost its chief executive Marcus Darville and founder Peter Arvanitis in recent months. No wonder there's a queue for the exit – Estia's shares have shed 50 per cent this year due to concerns about government funding changes.
Several brokers, including UBS which managed the float of the ill-fated nursing home owner, have downgraded their price targets for the group.
Yeager bomb
While the rest of the world might be focused on the mutterings of US presidential hopeful Donald Trump, the former BHP Billiton Petroleum chief and ExxonMobil oil man Mike Yeager appears to be channelling the former president George W. Bush.
The Yeager executive-chaired oil explorer Maverick (ticker MAD) on Wednesday lobbed a notice of extraordinary meeting for its shareholders to approve a $15 million share placement to fund its exploration of a shale oil field in George Dubya's home state of Texas.
But what caught CBD's eye was the resolution put forward by MAD to change its name to Freedom Oil and Gas. The company explained the name change was the "beginning of its new chapter" in focusing on its new Eagle Ford field in Dimmit County, Texas.
"The change of name is part of the revitalisation of the company and the board believes that it is appropriate to mark this new chapter in the company's life," explained MAD in its notice of meeting about the name Freedom, which also happened to be one of George Dubya's favourite words while he was president.
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