Legal Troubles Drop Commonwealth Bank’s Share Price by 3.34%

Shares for the Commonwealth Bank of Australia [ASX: CBA] have dropped by 3.34% today. The last time it sank lower than this was in November 2016.

Why has the CBA’s Share Price Fallen by 3.34%?

Despite being one of the biggest banks of Australia, CBA has not been doing well lately. People are unhappy with them after questionable business practices, and inside struggles for power, came to light.

The Aussie public’s trust in the Commonwealth Bank is dwindling, and this morning’s statement on the legal issues has not helped.

Staff at the CBA had influenced the Bank Bill Swap Rate (BBSW) in an effort to maximise profits, disregarding the impact this would have on a larger scale.

They will now need to pay a AU$5 million penalty, donate AU$15 million to a financial consumer protection fund, and cover the ASIC’s AU$5 million legal tab.

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What’s next for the Commonwealth Bank?

Despite their recent lows, the CBA has been, and remains, one of the largest banks both locally and internationally. Founded in 1911, and having served millions of customers, it is hard to believe the Commonwealth Bank will not recover.

That is, as soon as they get their act together.

Regards,

Ryan Clarkson-Ledward,
For Markets & Money

PS: Banks haven’t been the only industry with booming stocks in recent times. We’ve listed 10 ASX mining stocks that could make you huge money in the next 12 months and beyond. Download your FREE report now here.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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