Westpac plans to 'dump' risky property investors as rates rise...

Westpac plans to 'dump' risky property investors as rates rise and returns fall

This is the watershed moment I have been waiting for with Westpac. This will be looked back on as the moment WBC tried to rush to the exit as the house was on fire, trying to get out alive.

This the first public sign that WBC is worried about their risk profile to the falling house prices.

I can imagine how this all came about. Something similar to the movie Margin Call.
A risk analyst at WBC stumbling across the piles of utter dog(exrament) in their loan book.
Running to his manager to warn of the impending doom.
Mortgage managers have a crisis meeting.
Next step, call the board of directors.
How do we fix this???
Sell. Sell everything.
Get it off our books now!!!!



Probably not too far from the truth. Or I'm just wishful thinking

It has already be confirmed that the letter were sent to property investors with multiple houses.
Up to 5 in many incidences.

So WBC is putting pressure on the most exposed speculators to sell the properties before prices fall further.

I assume most have or close to no equity in the loan. So no other bank will touch these loans with a 10ft pole.

Cant refinance?!? You have to sell then!!!
This is what the bank will be telling them.

Less than a month to do so. In this current climate. GOOD LUCK.

This is how a fire sale starts!!!!!


It wasn't too hard for myself and others to work out how exposed WBC is to the housing bubble. Its about time WBC found out for themselves.
It was inevitable.

Maybe the losses from WA defaults are finally being transferred to WBC loan book was the moment that made them realise the problem.
This is a total guess on my part.
Will have to wait for the next 1/2 year reporting to confirm.

All this is all my opinion, not fact. DYOR