You think we have a banking crisis?...

bookworm_020 · 10-08-08, 06:40 PM

In Australia the four biggest banks are sitting pretty, as they aren't exposed directly to the losses (or very little exposure) and have less 0.5 of a percent in sub prime loans, this means that the loans they do have are far smaller risk. Because of this they can boost there profits by not passing on the full intrest rate cut (0.8% instead of 1%) as well as jacking up the intrest rates when the credit crunch hit.

I know there profits aren't going to take a dive, one of them is even buying up the Australian arm of one of the failed US banks for peanuts, and it's profitable from day one!

http://business.smh.com.au/business/...1008-4wsq.html

10-08-08, 06:40 PM	#1
bookworm_020 Navy Seal Join Date: Aug 2005 Location: Sinking ships off the Australian coast Posts: 5,966 Downloads: 1 Uploads: 0	In Australia the four biggest banks are sitting pretty, as they aren't exposed directly to the losses (or very little exposure) and have less 0.5 of a percent in sub prime loans, this means that the loans they do have are far smaller risk. Because of this they can boost there profits by not passing on the full intrest rate cut (0.8% instead of 1%) as well as jacking up the intrest rates when the credit crunch hit. I know there profits aren't going to take a dive, one of them is even buying up the Australian arm of one of the failed US banks for peanuts, and it's profitable from day one! http://business.smh.com.au/business/...1008-4wsq.html __________________ "There is always one person in any organization who knows whats going on, That person must be fired"