thanks for your views,Hi Witch, I am not singling out the NAB.....

thanks for your views,

Hi Witch, I am not singling out the NAB..
I think all commercial banks that have high numbers of cards on issue are at risk of having to provision for credit card default in the future and I think this will be the last skeleton that needs to come out before the sector can move forward...People under stress are probably using unsecured credit lines like credit cards to pay for thier car loan or even mortgages

Specifically with the NAB they may have over provisoned and you may see a write back on their CDO provision of last week given

AMAC just wrote back 150M following their settlement with CITI....(they provided for 1B but following settlement only took a hit of 850M as they over provisioned)... and

Merryls sale at 22cents on the dollar was good considering that thier CDO's were for mortgages done in 2006 for really toxic subprime which WERE NOT AAA like NAB, nab went all out an wrote down 90% just to be safe.....and

They may join or start thier own legal action that began against the rating agencies last week ....one mortgage insurer that paid out is now suing for negligence as the mortgages they insured were rated AAA meaning defaults of 1 in 10000 go bust(so is my understanding) and default rates were way higher ...the rating agencies will then claim on thier P and I insurance and the lossess in the end may end up with the insurance sector..


So if NAB write back some of its CDO exposure that is potentially positive....But if they do write some back will it will it be enough to cover increasing risk of credit card lossess?....this is the unknown and my question...I dont know the size of NAB's Credit card portfolio but I am assuming it is way higher than their forray into CDO's and even a small provision may be a very large number...

Does anyone know the current Credit Card portfolio size of NAb, WBC,ANZ, SGB or CBA?