The NAB was the big bank leader heading for $60, until Cicutto took over in 1999. He presided over the Homeside debacle, in which the NAB lost $4Billion, that's four thousand million dollars. Think about that number. That was followed by more losses and scandals, board upsets, and a general malaise that persists to this day. The NAB has made some terrible investments, and then shown a tendency to persist with them in the face of accumulating losses. It refuses to extract itself for the UK mess, despite clear calls from the market to do so.
In other words, what used to make banks tick, - innovation, new products, clever lending, - was replaced by managerial laziness, and increasing fees.
Now suddenly the banks are faced with a dilemma, - bitcoin. They can't ignore it because they know there is some big money behind it. But they have not yet worked out how to get their cut. The lazy bones will have to actually come up with some real insightful decisions, or miss out. They are terrified that millions of dollars may transfer around the world without them getting a cut.
So what to do?
Buy some time by denigrating it. That will work for awhile, but they need to come up with more than that or they really will miss out. Get to do some real work boys, for a change.
If I walk in to the NAB and ask them to transfer $10000 to buy bitcoin, are they going to refuse? Seems so for now, but I can't see then turning Zhenya Tsvetnenko away.
Bicoin will survive with or without them. The smart bankers will realise that, and the prize will go to the first one who comes up with a way to profit from it.
MEJ Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held
