One of the world’s biggest banks HSBC Holding Plc has merged its global markets and banking operations in Australia, appointing one executive to lead the combined division.

HSBC Bank Australia appointed Tony Cripps, who has been with the bank since 1986, as head of global banking and markets, according to a statement on Monday.

The global banking and markets division encompasses sales and trading, debt finance and advisory, institutional wealth management and relationship management of corporate and institutional clients.

“Our Global Banking and Markets business combines an in-depth understanding of the industries in which our Australian clients operate with international sector and product specialists, putting HSBC in its global entirety to work for each of our clients,” HSBC Australia’s chief executive Paulo Maia said in the statement.
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Claims by the banks that higher funding costs have prevented them from passing on recent interest rates cuts have been shot down by analysts who point to burgeoning margins on margins and corporate loans.

The major banks came under heavy criticism from the federal government last week after they passed on less than half the Reserve Bank of Australia’s (RBA) quarter of a percentage point cut in interest rates.

National Australia Bank (NAB) passed on no reduction at all. Like the other banks, NAB cited higher wholesale funding costs for its decision.
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Bank of Queensland Ltd (BoQ) will investigate growth opportunities, including takeovers and mergers, as the regional lender aims to take the places vacated in the market by St George and BankWest.

The bank on Thursday launched a formal review process, Project Pathways, to investigate ways to keep growing the business.

The bank also announced it would sell shares to existing shareholders at a discount, to raise as much as $100 million to strengthen its capital position and fund expansion.
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Australia’s competition watchdog has warned the big four banks that future mergers and acquisitions will be analysed with a fine tooth comb after it approved Commonwealth Bank of Australia’s (CBA) $2.1 billion acquisition of BankWest and HBOS fund manager St Andrew’s Australia.

The Australian Competition and Consumer Commission (ACCC) pointed to difficulties faced by BankWest’s and St Andrew’s UK parent, HBOS plc, resulting from the credit crisis.

The impact had diminished BankWest’s competitive position in Australia to the extent that CBA’s acquisition was unlikely to substantially lesson market competition.
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The merger of Westpac and St George banks has cleared its final hurdle, with shareholders in St George voting in favour of the deal.

The board of St George - Australia’s fifth largest bank - had recommended the merger.

Shareholders voted at an extraordinary general meeting in Sydney today.
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St George shareholders will be urged to vote against Westpac’s $17 billion takeover bid in a national advertising campaign launched by the bank workers’ union.

The Finance Sector Union (FSU) is asking St George shareholders to vote down the acquisition, saying it will reduce competition and lead to 5,000 job losses.

Shareholders will vote on the merger on November 13.

The FSU will begin a national print campaign today, and could add radio advertisements closer to the shareholder vote.
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St George Bank Ltd’s board will recommend to its shareholders Westpac Banking Corporation’s $19 billion takeover after the two lenders signed an implementation agreement today.

Under the agreement, St George shareholders will receive 1.31 Westpac shares for each share they hold. Full Story

Westpac Banking Corporation Ltd says it is well placed to move ahead with its proposed $17 billion merger with St George Bank Ltd after St George said its board would recommend the bid to shareholders.

The endorsement came after St George and Westpac signed a merger implementation deal that reflects the key commercial terms that have been agreed upon by both boards and under which the merger proposal will be put to a vote of St George shareholders. Full Story