JSE weaker as banks retreat amid accusations of ‘unbridled greed’
Local bourse softer on Friday morning as negative sentiment toward banks extends to all major sectors with the exception of platinums
The JSE opened weaker on Friday as banks were hammered following the National Treasury’s accusation that the Competition Commission’s charges of price fixing against local banks could confirm their "unbridled greed". Concern has been raised about the possible consequences of a fine levied on 17 banks named by the Competition Commission, with some reports indicating it could run into billions of rand. The sector could face more heat amid indications it is set be drawn into political squabbles in government. Banks could face a cumulative fine of R69.7bn, based on a 10% fine on annual turnover, a report in Business Day said. Standard Bank and Investec have been targeted for fines, with Barclays Africa (Absa) reportedly co-operating with the commission. "While the financial pain for banks was likely to be short term, the reputational damage, however, would be another matter, particularly given the highly charged political debate around ‘monopoly capital’ prevailing in the country at the...
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