NAB (ASX:NAB) share price slides as potential Forum fraud deepens

NAB might have exposure to the latest alleged fraud saga. Here’s how…
The post NAB (ASX:NAB) share price slides as potential Forum fraud deepens appeared first on The Motley Fool Australia. –

The National Australia Bank Ltd (ASX: NAB) and its share price are being scrutinised today. This comes as the potential Forum Finance fraud situation drags another ASX bank share into the mix.

At the time of writing, the NAB share price is off by 0.44% to $25.90. However, it is not alone in the red sea on Friday. All big four banks are showing weakness to finish the week.

Forum Finance creating muddy waters

The potential fraud saga involving Forum Finance continues to grow murkier. Only a couple of weeks ago, Westpac Banking Corp (ASX: WBC) revealed it had uncovered a potential case of fraud.

The matter relates to a portfolio of equipment leases with Westpac customers arranged by Forum Finance, founded by Bill Papas.

On Friday, reports from The Australian are suggesting NAB may also hold exposure to the fallout.

While the bank acted as Forum Finance’s transactional banker, it is believed Australia’s third-largest bank also holds a substantial chunk of the mortgages against Papas’ property portfolio.

Papas’ assets might be at risk of being reassumed to cover debts. This follows Westpac appointing McGrathNicol as liquidators. At this stage, the exact whereabouts of Papas is unknown.

Other regulatory pressures

The Forum Finance dilemma is not the only matter potentially weighing on the NAB share price. Both NAB and the Commonwealth Bank of Australia (ASX: CBA) could also be suffering some negative sentiment due to allegations involving BSP Financial Group (ASX: BFL).

The Australian Financial Review reported senior managers of the group have been ordered to be removed following breaches of anti-money laundering laws in Papua New Guinea. Consequently, CBA and NAB are caught in between due to providing ‘correspondent’ banking services to BSP.

Based on Australian law, both banks are mandated to carry out regular due diligence assessments on correspondent banks.

NAB share price recap

Unfortunately for shareholders, the NAB share price has been the worst-performing so far in 2021 out of the big four banks. On a year-to-date basis, NAB has returned 12.9%. Meanwhile, CBA is up 16.8%; ANZ is up 18.7%; and Westpac is up 26.7%.

Following the dip in the NAB share price, the bank’s market capitalisation is now $85.84 billion.

The post NAB (ASX:NAB) share price slides as potential Forum fraud deepens appeared first on The Motley Fool Australia.

Should you invest $1,000 in NAB right now?

Before you consider NAB, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NAB wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

How did the Afterpay (ASX:APT) share price respond to competition in the past?
It hasn’t been a great week for the ANZ (ASX:ANZ) share price so far
Top brokers name 3 ASX shares to sell today

The ASX 200 is trading near record highs – time to worry about popping bubbles?

Westpac (ASX:WBC) share price falls on broker downgrade

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!