Ambac have rejected Buffet's plan.A likely cause for Banks being...

Ambac have rejected Buffet's plan.

A likely cause for Banks being sold off harshly this morning maybe CBA's Outlook Statement, suggesting that full impacts of 'sub-prime' not yet over, plus continuing inflation concerns.

Quote... "The increased volatility in global financial markets which characterised the first half of
the Group’s financial year is expected to continue until at least the end of the current calendar year as the full impacts of the sub-prime crisis flow through the market.

For the Australian economy this is likely to mean that wholesale funding costs will remain above levels experienced in the 2007 financial year and inflation will continue to be a concern. This is expected to lead to further upward pressure on interest rates." ...end quote.