Australia’s banking watchdog will stick with its timetable to implement new liquidity rules and won’t widen the range of permissible assets, declining to follow global peers who have softened their stance.
New South Wales raised A$2.5 billion ($2.6 billion) in the biggest-ever sale of floating-rate notes by an Australian state, tapping demand from banks seeking to increase their holdings of liquid assets.
Goldman Sachs Group Inc. will pay $14.4 million to resolve regulatory claims that a former banker made improper campaign contributions to the treasurer of Massachusetts while seeking underwriting business.
The Australian Prudential Regulation Authority said it amended standards to allow local banks to issue covered bonds, after parliament passed legislation last week authorizing sales of the asset-backed securities.
Australia’s Prime Minister Julia Gillard may be forced to follow U.S. Federal Reserve Chairman Ben S. Bernanke by increasing mortgage purchases as house prices slump and the nation’s biggest banks extend their grip on the home-loan market.
Sales of bonds by top-rated overseas borrowers in Australia have evaporated following a record start to 2011 after the nation’s banking regulator ruled they don’t qualify under new international capital rules.