Commonwealth Bank faces criminal charges over CommInsure cold-calling scandal

Commonwealth Bank is facing 87 criminal charges over unscrupulous practices in its life insurance arm CommInsure. 

It's the first major bank to face criminal charges following the banking royal commission. CommInsure has been charged with "hawking" for trying to sell insurance products through unsolicited phone calls.

READ ASIC's announcement

The charges are not directly related to the Royal Commission as the allegations did not feature as a case study. 

But ABC's Peter Ryan says the allegations reflect a key theme of misconduct revealed during the year-long inquiry.

Mental illness costing corporate Australia $60b a year, Shared Value Project report warns. I speak with former ACCC chairman Professor Allan Fels

Australia is in the midst of a mental health crisis and it's touching all areas including the corporate sector which is already under pressure from a slowing economy.

A report out today from the Shared Value Project says mental illness costs the economy 60 billion dollars a year and for business alone, the bill includes 13 billion dollars in lost wages and less productivity.

The former A-triple-C chairman Professor Allan Fels- who's daughter lives with schizophrenia - is currently advising the Royal Commission into Victoria's mental health system.

Professor Fels speaks with the ABC's  Peter Ryan.

Potential "mortgage timebomb" as APRA changes definition of an owner-occupier

Banking Day 2 October 2019

More than 100,000 mortgages potentially face rate hikes after the Australian Prudential Regulation Authority reclassified some owner-occupied mortgages as investment properties. 

Under a new statistical collection system, APRA says the definition of an "owner occupier loan" can now only include only a borrower's primary place of residence. 

Banking Day associate editor George Lekakis crunched the numbers and says banks could be forced to increase their capital requirements given the additional exposure to more risky investor mortgages. 

He tells ABC's Peter Ryan that Westpac is the most exposed of the major banks.

Australian shares tumble on fears that US recession could spark global downturn

Around $75 billion in value has been erased from the Australian sharemarket in the past two days as fallout from the US China trade war mounts. 

Investors sold heavily after US factory activity hit its lowest level in a decade sparking fresh fears that the US could fall into a recession.

Here's my report from The World Today

Retirees warned to resist risky investments as bank deposit rates fall

With official interest rates cut to 0.75 percent, retirees are hurting even more as returns on their nest eggs continue to head south. 

People worried about falling yields from banks deposits are being warned to think carefully before jumping into risky investments that might land them in financial hot water.

Here's my report from The World Today

As rates head towards zero, RBA boss gets flak from aggrieved depositors

Reserve Bank governor Dr Philip Lowe has taken another jab at the federal government, signalling that the central bank's rate-cutting strategy needs more help. 

Dr Lowe repeated his call for more infrastructure spending and tax cuts to stimulate the economy. 

ABC's Peter Ryan says Dr Lowe confirmed he's deluged with letters from pensioners unhappy that falling rates continue to hurt bank deposits.

Interest rate cut bets rising despite housing bubble fears

Bets are rising that the Reserve Bank is poised to cut Australia's official interest rate the third time this year to a new record low of 0.75 percent. 

The rate cut expectations come amid concerns about the diminishing effect of falling rates and concern about a new housing bubble. 

AMP Capital Investors chief economist Shane Oliver tells ABC's Peter Ryan the RBA board is also concerned about a rising Australian dollar.

Reserve Bank cuts cash rate to historic low of 0.75 percent - and more on the way

Rate cut could refuel housing bubble analyst Martin North warns as UBS "liar loans" survey worsens

With the Reserve Bank widely expected to cut interest rates again tomorrow, a top analyst is warning that a dangerous new housing bubble is building as lending standards fall. 

As the cash rates heads 0.75 percent, the "liar loan" survey from the the UBS investment bank is showing that more people are falsifying their loan applications. 

Martin North from Digital Finance Analytics and Dr Timo Henckel from the ANU shadow Reserve Bank board speak with ABC's Peter Ryan.