THE NEWS WRAP: ASIC set to overhaul insolvency industry

An overhaul of the insolvency industry is set to hand more power to creditors and regulators to expose “phoenix” businesses that deliberately go broke, only to reappear in a different guise.

 

 

According to the Australian Financial Review, the Australian Securities and Investments Commission will get $11.4 million in extra funding to police the industry, as well as new powers to ban insolvency practitioners.

 

Banks shore up funding

 

Australia’s largest banks have been formulating contingency plans to avoid a credit freeze should the Eurozone break up.

 

With a mountain of debt weighing upon European countries, the eurozone’s credit rating is expected to be cut next week. Westpac chief Gail Kelly says that the bank was on a ”conservative footing” due to the debt crisis. 

 

EU puts brakes on Google-Motorola deal

 

Google’s takeover of Motorola Mobility has been put on ice after European Union regulators suspended their review of the move.

 

Regulators have demanded more information about the deal, which has seen Google offer $12.5 billion for the tablet and smartphone maker

 

Overnight

 

The Dow Jones industrial average was down by 60.51 points, or 0.50%, to 11,960.88. The Australian dollar was steady at 100.90 US cents.

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