funny people, page-6

this bank robbed my friends , every cent they had was taken, on what may turn out to be let says less than a legal basis, they acted more like con artists that leading businessmen

as it turns out they had not right to do this

so we had a good look at them and the more a few of us looked the more we found and the more we found the more we looked

when you do your homework you realize how much of ANZs strength is perceived rather than real, you realize their are substantial systemic points of weakness in their risk management

where systemic weaknesses exist in one part of a bank (opes looked at unemotionally is simply appalling risk management and supervision), any experienced banker will tell you such things dont happen in an isolated way, Opes told us there was virtually no risk management in place in the Insti bank

so the question is , where else did they do something stupid?

it didnt take long to find another part of the bank that grew parabolic in the same period

the institutional bank was buying debt insurance from one party and selling on to another party for a trading profit

for a lousy $+50-100m these turkeys put themselves in the firing line of +40B in risk

because of the way ANZ internally reported , it didnt come up on the boards radar, the systemic risk management weakness allowed managers in the institutional bank to take massive debt risk for relatively poor return

all based on counterparties who were concentrated into a few companies, these monoline counterparties CDS contracts are the only thing between ANZ and the global credit meltdown

on that basis we shorted the crapper out of it

I hope the Future Fund has got some really deep pockets because ANZ are going to take one big beating before this plays out