They have both had latent money laundering problems never really resolved.
SGR was part of another business charged $45 million AUD for money laundering at the time and everyone thought the problems were over.
CBA could quite easily follow the same fate as SGR.
They are both tarnished with the same brush, and as the superannuation system will struggle to survive a SGR collapse, CBA might lose all its value and the Australian Government will be in no position to bail out equity holders of CBA.
This has all happened before with the Babcock and Brown collapse in 2008/09 that almost destroyed the Aussie superannuation system. That time the rest of the world was involved because of Lehmanns and Bear Sterans.
This time, the matter is purely Australian so it is far worse.
The whole Australian economy and super system could easily collapse and unlike the Rudd Government, Albo will have no ability to bail the whole Aussie economy out.
SGR Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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