The thing is the Banks face such tough regulation from APRA i mean if that government department cannot get it right since the mistakes of the past what good do we have for the lesser regulated BHP and RIO... I mean for a more 'simple man' the Banks would figure as a very good barometer for the economy's health... The biggest thing CBA has going for it is the fire sale prices it is getting for some assets and when the economy does recover... AND YES IT WILL RECOVER.. CBA is VERY WELL PLACED with its recent acquisition of BANKWEST and couple of smaller assets to tackle head on the next BOOM time (whenever that may be)... In the end for all the commercial assets which do fail the banks will pull the plug first as seen with ADR... The banks will get back their 93 million and so to for alot of other companies they will pull the plug on.. The age of private equity houses supercharging equity with debt is at an end... and the banks will win thanks to them being a secured creditor in almost all cases they are involved.... IMHO IF CBA OR WESTPAC fails i will be EXTREMELY SURPRISED....
CBA Price at posting:
$24.07 Sentiment: LT Buy Disclosure: Held
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