long of the century, page-9

sure its over folks , ANZ is good value, its got great earnings and the dividend is fantastic

except if Ambac and or MBIA go belly then it has to make a provision of +$8B for the counter party exposure because the underlying debt that these CDS insure is complete junk

or Craftword report that basically admits to ANZ investors worst fears using the best wording David Craftword could muster

Seriously folks , when margin loans are not foreclosed due to ANZ employees for undisclosed corporate considerations then the employee could be committing fraud,

lets consider the proofs of fraud without making any accusations :)

Fraud must be proved by showing that the defendant's actions involved five separate elements: (1) a false statement of a material fact,(2) knowledge on the part of the defendant that the statement is untrue, (3) intent on the part of the defendant to deceive the alleged victim, (4) justifiable reliance by the alleged victim on the statement, and (5) injury to the alleged victim as a result.

(1)telling folks they keep their beneficial interest at all times in a share certainly qualifies as this, if ANZ employees were aware of this then are certainly a party to (1)

(2)well thats fairly likely as well Opes directors must have been fully aware that what were saying to their customers was completely untrue, the Opes directors for instance were telling their customers that they retained beneficial ownership and then we signing over that ownership to ANZ then it does raise some questions that need to be investigated criminally, were ANZ employees aware of these misrepresentations and chose to turn a blind eye for financial consideration , no one truly knows but it does make one wonder


(3)given (1) and (2) there is certainly a prima facie case for the suspicion of (3), the whole Opes business model was predicated on this deception IMO , ask yourself if Opes had made customers situations clear how long would have Opes survived? Opes had to trick its customers to operate, were ANZ employees aware of this apparently intentional deception?

(4)well reliance on Opes statements more than justified in most cases

(5)injury to Opes victims is without question

So lets get this straight ANZ employees were clearly given financial considerations by Opes (overlooking margin calls is effectively a financial payment), the question is for what benefit were these considerations made? lets also consider that Opes directors as ex ANZ employees were fully aware of ANZ policies, was Opes inducing ANZ employees for personal consideration to overlook potentially fraudulent practices by Opes towards its customers?

The question works a number of ways

For instance were they given these considerations to overlook ANZ policy or to overlook certain anomalies in ANZ security or to overlook the blatant misrepresentation that Opes was making to its clients about beneficial ownership?

Were ANZs employees (and therefore ANZ) fully aware of the marketing misrepresentations with respect to be beneficial ownership?

ANZ are a ship of fools if they think the market believes their statement about their legal position to be strong

IMO their legal claim over the shares is built on the sand of questionable related party dealings , god knows what ANZ and Opes employees agreed behind the scenes, if ANZ wat every piece of this saga dragged out by discovery, if they want their now fired employees to enter the witness box, the so be it, more fool them

Opes is only part 1 of the ANZ saga , there are many more to come, the next chapters are

Part 2 Counter party provision for more than $8B on monolines
Part 3 Australian and NZ recession evaporates their earnings
Part 4 Local CDS counterparty exposure to the tune of +20B
Part 5 Loss of their AA positive rating
Part 6 Dividend cut

its all conjecture, the trouble is its will be never endig conjecture, the ANZ team a praying the economy doesnt falter further, they are praying the monolines remain solvent, they are praying their legal case in Opes is strong

thats all they have is prays and so far it doesnt seem like the big guy upstairs is listening









ANZ