Originally posted by riskyrider:
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Barclays failed due to a rouge trader. Australian banks cannot fail in this way. As you point out though treasury makes half the profit for the bank and a rise in bond yeilds and a fall in the aussie makes for tresaury profits. That with a little more gouging a one off write down for the RC and a little cost cutting and in 2 years we will be looking at record profits again.
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Originally posted by riskyrider:
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Barclays failed due to a rouge trader. Australian banks cannot fail in this way. As you point out though treasury makes half the profit for the bank and a rise in bond yeilds and a fall in the aussie makes for tresaury profits. That with a little more gouging a one off write down for the RC and a little cost cutting and in 2 years we will be looking at record profits again.
Expand
why do you think the yield will be 10%
They going to cut the div. because the game is up.
when you cant hide misdeeds anymore then no need to appease shlders. The sp will sink and then they say they need all the money to reorganise and built a safer bank and that money my friend comes from what should have been a better div.
They will go the way of the US - have a look at the div yld on banks there
(20min delay)