Westpac Financial Scandal

- Foreign Currency Loans Scandal and the de Jersey Factor

The major banks (the NAB reluctantly) began offering loans denominated in foreign
currencies (FCLs) to non-corporate borrowers in the early 1980s. This thrust followed
from the perceived threat of new institutional lenders, regulatory quantitative lending
restrictions and the prospect of making tidy profits in a new sphere. Enhanced profits
were to be achieved not least from higher margins, tax minimisation strategies and
(as it transpired) under-the-table expropriations from borrowers.
- Westpac urged to close 200 branches
Westpac's "multi-brand" strategy is facing a fresh round of market criticism,
with JP Morgan analysts saying the bank should consider closing up to 200 branches
in a bid to cut costs.