banks want bnb to survive, page-3

Why must this be true -

But every bank in Australia will now be pushing hard to ensure B&B survives - it must.

This lament at the end of the email post from Tigergt, is a nonsense.

Furthmore in that email the author laments that the market has spoken, if their were seller at A$5 then the market has spoken. I understand the sympathies...and sentiments. We live and trade in an environment where the market is the final arbiter. BNB is in the sh*t for a very simple set of variable -

a) complex model, all designed to obfuscate and to be in essense discursive and dodge the realities.

b) the fundamental flaw is that as in the mid 80s (this is a very old model it had its genesis in the early 70s, who can remember LTV [Ling Temco Voight] in the States and Slater Walker in the UK). They were all the same. Shuffling papaer titles to assets, to 'release the assets worth' or some other 'genius idea'.

c) these ideas are available every 10 years or so. They are fueld by low interest rates, a sea of money and averice, perid

d) this notion of an investment bank better go, get it out of our vocabularies...charging management fees because we borrowed cheaply and had the balls to pay too much because there was a sea of money, is not a value add or a creation of any improved value.

Profit is the reward for managing risk...in BNBs case the ratios of that statement have all but vanished. The variables they can excercise any measure of control over are -

e) beyound their experience and capability

f) can not be changed rapidly to provide the one thing BNB needs, cash not debt.

Odd notions I know, but then I have seen this all before and those who have wrestled with an MBA will have done copius financial case studies on Bond etc. Tell me what is the difference between the constructs of both his propositions and Skase and BNB. Zero, correct!

If it goes who gives a tinker toss. The assets will be sold off ala Bond and all shall return to normal...till the next avericious run returns. Citibank will start pumping about Dec 2009, all entrepreneurs get ready...there might a few in BNB today waiting for their chance...