FML 5.13% 18.5¢ focus minerals ltd

why the apathy !!!, page-3

  1. 5,237 Posts.
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    "Maybe Deutsche Bank is the answer."

    I cannot see Deutch Bank on the list of the top 20, which means that if the bank is in the share registry of the company then it must have by now less then .26% of the total capital.

    What I can see is that the top 5, with the exception of Gulara Pty Ltd, are all nominees, which if faithful to their name would mean that they would not be holding the shares on their own accounts, a fact that probably would also apply to Deutch Bank.

    Banks are institutions whose capital is not expected to be invested in speculative gold mining stocks as these institutions are subjected to capital adequacy ratios designed to force them to limit their appetite for riskier assets by making it uneconomically for such institutions to use their depositor's funds on the purchase of such assets.

    Therefore when they sell assets as nominees they would be expected to be doing so as per instructions from those clients on whose behalf they, as nominees, are holding the legal title to the assets.

    Having said that, one has to realize that banks can contract their loan books in general or to a particular client or group of clients including those that borrowed on margin, a thing that happens quite often through a margin call when the price of a particular stock falls.





 
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