THE NEWS WRAP: CBA to increase stake in Aussie Home Loans

“Aussie” John Symond has netted tens of millions of dollars by selling a bigger stake of his Aussie Home Loans business to the Commonwealth Bank.

CBA is set to increase its holding in the mortgage broking business to 80% for an undisclosed amount, although reports suggest the deal cost CBA in excess of $160 million.

Symond, who is best known for the catchcry “we’ll save you”, will continue as executive chairman of Aussie Home Loans and will retain the outstanding 20% shareholding.

Cotton On hit with $1 million fine

Retail chain Cotton On has been fined $1 million by the Federal Court after selling highly flammable children’s pyjamas.

The court found that the pyjamas breached Australian safety standards and had a misleading label that claimed they were a “low fire danger”.

The Australian Competition and Consumer Commission is urging customers who bought the pyjamas to return them. Cotton On has withdrawn the product from its stores.

Instagram provokes fury with privacy policy switch

Instagram has unleashed a severe backlash among its users after changing its terms and conditions to allow the use of photos in advertisements.

The changes will allow Instagram to share its users’ information and content with advertisers and its parent company, Facebook. The online photo sharing service says that unless users delete their accounts by January 16, they will not be able to opt out of the changes.

The reaction on social media has been scathing, with one user, photographer Clayton Cubbit, saying the new policy is “Instagram’s suicide note“.

Overnight

The Dow Jones industrial average was up 0.87% to 13,350.96. The Australian dollar held steady at 105.42 US cents.