aus banks in trouble, page-2

trouble sure, end of the world no..End of the big 4 no, infact they will probably end up with some of the smaller players and emerge stronger....

Bought yesterday at above $26 not on the basis of us bailout plan which we knew on Sunday excluded the likes of NAB

My timing is aweful as it turns out as I did not expect the ppl who called for the bill would not vote for it..

anyway back to NAB
Bad things NAB CDO CDS CLO exposures
Good things - they stepped up early and wrote off basically all of these assets and took early provisions
Still expected to make profit this year and going forward albeit lower than last year
Still rated Aa1 which is rare in this world mainly due to size and strength of balance sheet, rating also makes it easier to raise capital if and when required..
Large deposit base

Ugly early or maybe for a few days until they sort things out in the USA

Expecting rate cut of 50bp now to support market and banks
Expecting M and A action as the big 4 step up and take advantage of lower SP's in smaller players

My instinct tells me to do nothing...