1/ The banks generally spend a shedload of money on man-hours researching the fundamentals of different stocks. Their withdrawl from their Standar LVR approved securities list means that they have enough concerns about a crucial aspect of the business so as not to lend against it in its own right.
Think of it as a bit like looking at the list of loan products at a bank. eg Home Loan 7% Margin Loan 9% Car Loan 11% Personal Loan 12%
The banks make a calculated risk assessment of the loan, and price it accordingly. They now think that AIO is not a viable security to loan on. The fact that they have kept it as part of the diversified LVR approved securities keeps the door open slightly.
AIO Price at posting:
92.9¢ Sentiment: Buy Disclosure: Not Held