wow i give up, page-60

Melua -

I actually agree with you on this. My point was directed towards the gearing levels banks have lent property (residential or commercial regardless) in the past 10 years, and now its all unwinding and they are forced to carry book values on commercial real estate which are not viable in the current market conditions.

Remember, back in the early 90s where WBC and ANZ almost went under on a rapid descent in commercial property book values.

All I am saying is, we have not heard an iota from the banks on the reduction of commercial valuations affecting their books. All we hear about is Tier 1 capital requirements, and property trusts rolling over funding requirements. If the banks were to "mark to market" their commercial (and to some extent, lofty residential) valuations, they would be forced to use some of that precious tier 1 capital to bolster the holes.

Which is why I am saying the banks are all cum one more capital raising, and if I were advising them, I would say the opportune time is now, with the short selling ban likely to be lifted soon.