insto - Australian financial markets

ANZ has reached an out of court settlement with former institutional banking chief Steve Targett, who sued the bank for A$57 million after being passed over as chief executive.

The case was due to be heard in the Federal Court next week, but the two parties reached agreement to end a two and a half year legal dispute in a move which takes a potential A$57 million liability off the ANZ balance sheet.

Targett left London in 2004 from Lloyds TSB to join ANZ, reporting to former chief John McFarlane.

The UK banks have a thing or two to teach our financial players when it comes to boosting regulatory capital, writes Elizabeth Fry.

Who said plain vanilla was the only flavour of 2009? Investment banks are always trying to come up with new and innovative ways of structuring deals.

The global financial crisis has hit banks with a double whammy by both increasing the need for them to improve their capital position and making it difficult for them to raise new capital.

HBOS Australia Pty Ltd has changed its name to Lloyds International Pty Ltd to reflect the company’s change in ownership earlier this year.

BOS International and Capital Finance will retain their names.

“Our BOS International, Capital Finance and Bank of Scotland Treasury businesses have strong, established positions in the Australian market and it makes sense for them to retain their existing branding, which have excellent customer recognition,” said Lloyds International CEO David Smith.

The UK banks have a thing or two to teach our financial players when it comes to  boosting Tier 1 capital, says finance journalist Elizabeth Fry.

Due largely to the US$11 billion dollar government offering from the United Kingdom this week, year-to-date debt volume from UK issuers has surpassed 2008 volume in the year-to-date period, climbing to US$142.1 billion.  This is according to the numbers published by Thomson Reuters, who noted that weekly UK volume totalled US$19.1 billion, the highest weekly level since October 2007.

Dalton to head ASF: The Australian Securitisation Forum has appointed Chris Dalton as its new chief executive officer.  He will commence the role in the week beginning 25 May. Dalton was previously with Standard & Poor’s. He spent 19 years with the rating agency where held the role of managing director & country head Australia/New Zealand for eight years. The ASF’s National Committee said it had regard to Chris’s extensive market experience, strong industry contacts and his depth of stakeholder engagement and management skills.

As always, any crisis will have the dual characteristics of threat plus opportunity. Robert Morgan* assesses where Australia's big four banks stand in the new world order, especially when it comes to poaching business customers.

HBOS plc, rated AA/Aa2/AA, has priced its debut domestic issue a A$600 million fixed and floating subordinated lower tier II issue.

Commonwealth Bank of Australia and UBS Investment Bank are lead managers for the transaction.

The deal launched earlier in the week at the A$500 million minimum level before being upsized to A$600 million. At 26 basis points over swap/BBSW the deal priced in line with guidance.

HBOS Treasury Services, Sydney branch, rated AA/Aa2/AA+ has priced a NZ$325 million three year fixed and floating rate Kauri bond issue via ANZ Institutional and Bank of New Zealand. Maturity date is 30 March 2010.

The notes launched on 22 March 2007.