A class action lawsuit is coming against directors of Kagara, whose stock price cascaded from $2 billion in market value to zilch in seven years. Bankrolled by litigation funder IMF and prosecuted by law firm Piper Alderman, the action claims Kagara’s former directors breached their duties to keep the market properly informed under “continuous disclosure” rules. The collapse of the copper/zinc miner left a trail of destruction with its myriad creditors and suppliers left in the lurch. More fuel for the ASIC fire The guts of the claim involves balance sheet shenanigans, particularly an inappropriate conversion policy in the...Read More
Author: Michael West
Mike Smith left ANZ at the turn of the year. The bank’s share price deflated 6 per cent during his time at the helm. The centrepiece of his corporate strategy, expansion into Asia, is now unwinding. Though he was still paid almost $90 million for his eight year stint. Not bad for a taxpayer-backed job. The banks are underpinned by the Reserve Bank’s Committed Liquidity Facility, effectively a bail-out fund to prop them up if they get into strife. In light therefore of the lavish remuneration and low risk enjoyed by the country’s big bankers it is galling that...Read More
Curtain raiser for the annual Fat Cat survey. Which are the best performing and worst performing Australian super funds? This year, a record 3,800 funds are covered. Will industry funds beat retail funds again? How poor will you be when you...Read More
Story by Michael West and Geordie Wilson The numbers are staggering. The Big Four accounting firms have picked up at least $2.6 billion in fees from the Australian government over the past ten years. Last Tuesday before the National Press Club, the Minister for Social Services, Christian Porter, unveiled a PwC report which put Australia’s “future lifetime welfare cost” at $4.8 trillion. No matter they confected the highest number they possibly could to scare the daylights out of people, when it came to those dastardly welfare bludgers, the die had been cast. The Murdoch press and the TV ran...Read More
The looming bank inquiry and the case for a Royal Commission. Malcolm Turnbull kicks of Australia’s parliamentary inquiry into the banks next week. It is unlikely to quell rising calls for a Royal Commission. The big four banks – ANZ, NAB, Commonwealth Bank and Westpac – control 90 per cent of the mortgage market and dominate the superannuation...Read More
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New Michael West Podcast
Created by PodcastOne, this 3 part series looks into how Australia has gone from one of the cheapest countries in the world for energy to one of the most expensive, and reveals just what has happened with our gas and electricity supply and why we are on the verge of an energy crisis.