its actually the short term money lenders who are crying wolf.
They major lenders have 1st mortgages so they arent too fazed by any of this.
The CBA did lend some unsecured funds, however being an indirect and direct shareholder would make one assume they will play ball........and are still getting paid each month.
CNP have already stated that they dont have to sell as a fire sale.....and the banks cant make them either.
Thresholds are set when the moneys lent, CNP havent missed any repayments.......not in breach of anything at all....lol
All thats happened is the lenders, well some, well a couple....dont wish to rollover the funds.......maybe they feel they have too much now tied up with the one borrower and think the borrower is higher risk than when the funds were lent, which is mainly due to the subprime caper im sure more so than anything else.
It could in fact be that CNP were lent the funds on fairly favourable terms that are not less favourable to the bank.....and to get thier hands back on 2-3 billion when funds are hard to come by would keep any financial jockey working for the bank in his job.
They can lend the funds out to then 6,8,10,15 seperate deals, at a higher rate, and collect interest, fees etc on all of them with the risk accross many mammals instead of one.
All in all Im more worried about the banks than I am about CNP...............I think Gold might be the place to put funds over the next 3 months.
When banks start finding it difficult to find funds, they can get very edgy very quickly, as can their shareholders.
Gold for me.........and ironore.
call in
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
