It’s been a big week for the bank.
The post What’s happening with the CBA (ASX:CBA) share price this week? appeared first on The Motley Fool Australia. –
The Commonwealth Bank of Australia (ASX: CBA) share price is down 0.2% in early afternoon trade.
The S&P/ASX 200 Index (ASX: XJO) is down 0.7% at this same time.
If the CBA share price closes in the red today, it will make 3 days of gains for the week and 2 of losses. Wednesday was the only other day shares closed lower, down 0.2% to $101.41 per share.
Below we take a look at what’s been happening with CommBank over the week.
CBA share price shrugs off defamation allegations
The CBA share price closed up 0.2% on Monday, despite news that Colcambios Australia, a remittance company, had accused the big 4 bank of defamation.
Colcambios makes use of cryptocurrencies to transfer pesos and Aussie dollars between Columbia and Australia for its customers.
Concerned that money in its customers’ accounts could stem from fraudulent activities, CommBank wrote letters saying they may “have fallen victim to a scam”.
In its defence, CBA said it didn’t mention Colcambios Australia by name, and that it was acting in accordance with its perceived legal duties.
CBA’s share price closed up 0.3% on Tuesday.
That was the day it revealed it had acted as the sole financier and “green coordinator” for Charter Hall Group‘s (ASX: CHC) Melbourne based development. Once completed, the development will serve as the new headquarters for Australia Post.
CommBank said the $202 million construction facility is Australia’s maiden Climate Bond Initiative-certified Green Development Loan.
More legal woes
Thursday’s news that the Australian Securities and Investments Commission (ASIC) had filed 30 charges against the bank didn’t deter investors, who sent the CBA share price up 1.4% yesterday.
As my Foolish colleague, Tony Yoo noted, “The matters relate to CBA’s promotion and sales of add-on insurance products CreditCard Plus and Loan Protection.”
The bank is accused of “false or misleading representations” to some customers.
CommBank said it accepted that its prior behaviour was not acceptable and reported that it no longer sells these products. The bank will plead guilty and has already compensated 165 customers. It faces a maximum potential penalty of $1.7 million for each of the 30 offences.
CBA share price snapshot
The CBA share price is up 22% year-to-date, compared to a gain of 11% posted by the ASX 200.
Over the past month CBA’s shares are up 3%.
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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.