Ever heard the term, when pigs fly… well this is what was meant by that. Goldman Sachs has certainly had a run of good publicity lately which you can read on this blog. Just when you thought it was safe to go back into the water I find the National Australia Bank now own the very same firm that insiders have called “The Pigs of the industry”. No wonder there is so much fraud going on with National Australia Bank.
NAB buys Goldman Sachs JBWere unit
Australian Broadcasting Corporation
Reporter: Andrew Robertson
The National Australia Bank is moving back into full service stockbroking after an absence of nearly 20 years. It is paying just under $100 million for the private wealth management business of Goldman Sachs JBWere.
ALI MOORE, PRESENTER: The National Australia Bank is moving back into full-service stock broking after an absence of nearly 20 years. It’s paying just under $100 million for the private wealth management business of Goldman Sachs JBWere.
And in an attempted to improve its reputation among customers NAB is also abolishing the $30 fee it imposes on overdrawn accounts.
Andrew Robertson reports.
ANDREW ROBERTSON, REPORTER: Founded in 1840, JBWere is one of Australia’s oldest broking houses with more than 22,000 clients whom it advises on $38 billion worth of assets.
American bank Goldman Sachs bought a 45 per cent stake in 2003. The National Australia Bank has been looking to expand its wealth management operations and last month announced the $900 million purchase of the Australian life insurance and financial planning arms of British insurer Aviva.
Chief executive Cameron Clyne says Goldman Sachs JBWere is a perfect fit with that acquisition.
CAMERON CLYNE, CEO, NAB: So what we see is that over the long run wealth management insurance, financial planning is a key strategy for us. So we’re both pleased with Aviva and JBWere, we’re starting to build, I think, the iconic wealth-management franchise in this country.
ANDREW ROBERTSON: There are those, though, who believe NAB should be bolder if it wants to build a truly iconic franchise.
BRETT LE MESURIER, WILSON HTM: Well in the past they have shown an interest in AMP. I don’t understand why they actually don’t do something more significant and have a very close look and make a bid for AMP.
ANDREW ROBERTSON: One of the most irritating aspects of dealing with banks is the gouging of fees and in particular the excessive charges for accounts which are overdrawn. NAB is abolishing its $30 impost on such transgressions, with Cameron Clyne saying the torrent of customer complaints far outweighs the revenue generated by the fee.
CAMERON CLYNE: Dealing with these fees is time-consuming and de-motivating. Getting rid of them will mean our staff have more time to spend with our customers on things that really matter.
ANDREW ROBERTSON: Mr Clyne is confident improved customer satisfaction will in time boost profits by more than money that will be lost by abolishing the fee.