The party is over for BNB. The business model is terminally broken.
Phil Green and his cronies had a good ride while it lasted. But its all over now.
The BNB model relied on an endless inflow of investor funds, low interest rates and capital appreciation of assets. All three of these legs are no longer valid for BNB.
BNB cant save itself. Its not a Macquarie. BNB is not a real bank. It has no banking licence. It has no access to banking liquidity. It has to borrow like a corporate and with recent events the cash has dried up.
Phil Green and his cronies will try to hang on as long as they can because they have so much of their personal wealth tied up in the business. If the banks take over Green and his staff lose everything.
Phil Green & Co got BNB into this mess. Business 101 - The team that gets a company into a mess will not get it out of the mess.
The best thing for BNB is to axe the existing management and put in place a credible management team. Commence an immediate urgent review of the business, sell down assets and reduce debt.
The party is over. Its time to clean up the mess.
BNB
babcock & brown limited
The party is over for BNB. The business model is terminally...
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