bt shocker, page-6

Thanks geffa, here is the article..

WESTPAC'S FIRST SIGNS OF CHANGE

9 March 2003

The first signs this week of change, or is it panic, at Westpac over its wealth management strategy.

Operation Red Power was unleashed on the unwitting members of the wealth management division, including those from BT and Sagitta and appeared to claim its first victim in the shape of private bank number two Jim L'Estrange.

But then strange things happened on Friday. Lots of closed door meetings ... a farewell function apparently cancelled and Mr L'Estrange still very much part of the Westpac family.

More a Red Power-struggle, we think than a re-organisation.

The catalyst for all this is the continuing underperformance and outflow of funds from the BT/Sagitta operation that has been as high as $400 million a month.

Reversing this is a source of growing frustration for David Morgan and his team, especially David Clarke - the ex MLC boss who may have been out of the loop when Red Power descended. And perhaps Clarke's intervention is why Jim E'strange remains.

It's the old story of bankers and wealth managers not getting along. It's happened at Commonwealth and Colonial and at the ANZ before. The wealth managers big problem is that they don't control their distribution - the key to the whole BT deal.

For if the flood of funds out the door does not stop, Red Power could become Red Mist for shareholders...or David Morgan