bank suicide bombers - alan kohler, page-12

street talk.

just remember the banks have also invested in CNP and the interest payments (returns) have always been maintained.

Let it sink and there will not be any return to CBA's holders for a very long time.....

It doesn't matter what security u have... unless u can sell it.

Right now the banks have the security of having their interest paid and returned to their balance sheets.

Yes the LVR may or may not be high but is irrelevant if you take a long term view.

Odds are the properties would sell for more in 5 years time than now.....reducing the LVR...market conditions and all that.

they dont build shopping centres every day.



$1 bln exposure with an exact return is better than $1bn with no interest coming in.

They can extend the loans out for 3 years allowing time for a steady selloff of assets.

So the banks would take control of the selling of assets while CNP manage the property as they have done.

A win/win situation I would think.