With Coe et al letting the margin loan holding subsidiary go...

With Coe et al letting the margin loan holding subsidiary go into receivership (plus all the other debacles going on) they are in danger of loosing the final bastion of any financier - confidence - As Oscar Wilde said confidence is like virginity - you lose it only once.

The banking fraternity is a very close knit one - they regularly used to syndicate and meet at leveraged presentations. AFG have upset two banks NAB and BOSI - what will other banks be thinking - there but for the grace of god - or I'm sure as hell not going to be next ? The management need the syndicated banks to work with them as a unit - but I feel they will have ostrecised them by their actions.

They are playing musical chairs for very high banking stakes - but the threat of firesale assets are reducing the chairs available - how long before someone looses confidence and pulls the pin ?

For me this is too risky a play - as an ex banker I have concerns that Allco in its current format may not pull through or rather it may be pushed to the brink of disaster - I hope I am wrong - but even quality deal making skills may not overturn the tightest credit market for 20 years....
and with bank's share prices falling as well the culture will turn towards risk minimisation and maybe cutting the losses now before they get worse....

I hope I am wrong but it may be the time to cut one's own losses. I am out and not trying to down ramp just giving my thoughts as an ex banker.

Please DYOR