aus banks in trouble, page-13

Hey Sydney,

My understanding is that NAB actually have closer to $14b exposure and the $1b was really only an isolated part of this that they chose to write down.

From my understanding, there were thoughts that NAB only wrote off $1b as if they went further they may have then needed to raise capital to keep their house in order.

I could be wrong here. I saw some research on NAB from another broker who have major questions on them and wanted an answer on why they have such an exhorbitant exposure offshore compared to the other 3 banks and ST George.

Of the 4 majors, NAB is the one that concerns me the most. Their foray overseas has been ordinary at best. WHo could forget them writing off $4b from the Homeside pruchase in 2 years? The UK operation is stressed and don't forget they bought that rural bank in the US last year.

Also, their risk management seems ordinary. Hopefully tightened up since their traders wiped off a few hundred million dollars a few years ago.

I still think you cant go past WBC. Large deposit base, their former CEO obviously was a scholar of history learning from the early 90s disaster when they and ANZ almost went under. WHile the other banks have been agressive (and higher risk takers) WBC has run a conservative operation which could now see them come out as the best banks for the next decade (just as Don Argus made NAB during the early 90s with conservative practices).

Just my thoughts and I stand corrected. But good luck.