I don't think the NAB has been badly managed, I just don't think it has been managed at all, - since the days when Frank Cicuttto took the helm. He let the Homeside US disaster blow out to four thousand million dollars (!) before anyone noticed a problem. Just plain neglect of duty. What followed was board in-fighting, while the bank looked after itself. The names around the board are a who's-who of failures and disasters. After leaving the NAB with a nice payout, Cicutto ran Run Corportation, - as its share price tanked to a few cents from above $1.
Pasminco was placed in administration in September 2001 owing $2.6 billion to its bankers and with its hedge book underwater to the tune of $850 million.
Mark Rayner, who chaired Pasminco during its collapse into administration in late November, was also chairman of NAB at the time.
For years the NAB traded at a price three times that of Westpac, and should now be around $50 or higher.
Even today, the NAB still has learnt little from its litany of value-destroying disasters. I've had many discussions with various people at different levels of the bank, and my diagnosis is that there is no culture or pride in the company by its staff. Its a dead organisation, that employs people who go to work every day. Much like Centrelink, or the RTA.
