sentiment turning positive, page-25

chip04

Re; ...
"2. Oz is really in an "Informal Administration" with the banks calling the shots, and telling Makemepoor exactly what he has to do with the company i.e. Stop cash burn, sell an asset or two.
3. The Banks don't want to see a big customer like Oz go down. They stand to make millions out of them, so they will do everything in their power to keep Oz alive.
4. The banks "DON'T WANT PH SOLD"! If PH was sold they would NOT be oferring OZ bridging finance I can assure you...." ...

My earlier posts attest to my concerns about OZL's administration etc. However, I also have concerns about heaping all the blame on AM & placing banks on a pedestal.

Members of my family who worked as managers for banks agree with the old-timers who lived during the Great Depression and remember the disgraceful behaviour of the banks then. They drilled into me; "Never trust the banks!"

IMO this has been OZL mgt's biggest mistake - laisser-faire banking regulations have inspired banking excesses as greedy execs pursue ever-higher remuneration, without matching accountability.

Having stuffed up big time the banks have been propped up & protected by government & central banks. They have rewarded government by failing their charters to invest responsibly, exacerbating the global crisis. There have been reports of banks sacking their own staff and just calling in their loans, thereby allowing the destruction of viable companies & community wealth. They have even failed to properly support the Fed Govt's new home buyer initiative aimed at supporting the building industry etc.

IMO, herein enters OZL, with a new mgt that has been too slow & ill-equipped to come to terms with the global crisis. As a result those wonderful bankers have hung OZL out to dry. My guess is that they will reap $millions from any loan defaults - why wouldn't they bring them on since it is just easy short term money for them. IMO it's also possible they have other 'preferred clients' who may just happen to benefit from any OZL fire sales.

IMO OZL mgt should have come back to retail shareholders for new share issues to wipe out all debt since they are its only true supporters!

4YIO - NFA