Please go to PGC thread to see my sumary of this article.
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Please go to PGC thread to see my sumary of this article.
Hi janner,and a special hi to Snoopy.Looks as though the Banks could get fried.Article in The Age headed "Drop in banks' cross-border lending".; The larger Australian banks rely on global funding markets.Not a good secure Sauce [source] I would have thought.Warnig bells.?
Just found the article Percy. It is about European banks lending money to do development in Australia and now wanting their money back. That is a problem for European banks, not Australian banks.
The last line of the article
"However given the larger Australian banks rely on global funding markets, they would be affected by the turmoil in the markets that would follow any break-up of the euro area or a European sovereign or banking default, he said."
doesn't appear to follow from the content of the rest of the article. It reads like a desperate attempt to give European bank loan problems a 'relevant to Australia' spin.
SNOOPY
According to the FY2011 ANZ annual report, ANZ don't have to repay any of their overseas bonds or notes until 2015 at the earliest. This 2015 date relates to 200 million GBP. If demand for funds from ANZ customers goes up then ANZ might have a problem raising more funds in Europe. But this seems unlikely in the current financial climate in Australia.
If demand goes down they can repay some bonds early without penalty. I don't see the same threat to the likes of ANZ that you do.
Again using ANZ as an example, total overseas bonds on issue are $A56,551m compared to deposits of $A368,729m. I would hardly say ANZ is beholden on overseas borrowings for funds. So far I am not even the slightest bit worried that the likes of ANZ is in any kind of trouble. Can you supply anything more concrete on what you might be on about?
SNOOPY
Glad we agree we are comfortable with funding,you with ANZ and me with HNZ.
Have just mailed back the 30c offer form in an unstamped envelope with the words - "Get stuffed you thieving Bastards!!" printed in bold, black marker pen. Hope they don't mind paying the postage!!
Hi Snoopy.
Think you will find article in "The Age" positive;"ANZ to close fund after $100m lost".They don't appear to have a very good investment record.
It is merely a lesson against the folly of trend following Percy
"Former ANZ chief executive John McFarlane launched the fund in 2006, at the peak of the boom, with high hopes that its plans to invest in small to medium-sized companies in Australia and New Zealand would pay handsome dividends."
"However, many of the companies in which it invested wilted when the global financial crisis struck two years later."
Jumping on a bandwagon normally ends in tears in the end. But as the article said, the loss is not material to an entity the size of the ANZ. Of course if it had been Heartland in this hot seat, such a venture might have finished them!
SNOOPY
Percy - Hobart can't be too bad housing wise
http://www.themercury.com.au/article...r-stories.html
Would appear we have a real estate market of two halfs.! Top half over $1mil strong,while bottom half under $1mil weak.!!The bookseller's house which remained unsold after a year on the market was in the $650,000 to $750,000 bracket from memory.Situated in Churchill Ave,Sandy Bay.
Breaking News! Heartland have just rebranded my local CBS Canterbury store in Riccarton as 'Heartland'. This is very clever timing. The work is done in June and Heartland gets the bill in July. But Heartland's balance date is 30th June. That means Heartland can shunt their transformation costs into the following financial year!
One more observation. The new branding is 'Heartland' not 'Heartland bank'. That means we can rule out Heartland becoming a bank in the next year. If a banking licence decision was near Heartland would have delayed their rebranding IMO.
SNOOPY
In your post #415 you ruled out registration of HNZ as a bank for about 3 years. Now, a couple of months later, you rule it out in the next year. Seems to me you are prejudiced against HNZ [and/or percy] and tending to make a fool of yourself with inconsistent assertions.
[QUOTE=Snoopy;376543]Breaking News! Heartland have just rebranded my local CBS Canterbury store in Riccarton as 'Heartland'.
Looks very smart.I notice they have left plenty of room to add "Bank" to the signage [at very little cost] if and when they get a bank licence.
Only thing is tho,it only says heartland,so heartland what? no bank of course,but no building society either,so maybe holding off in expectation I think,but after all it is only paint.
US, I probably have more robust exchanges with Percy than other posters. But then again Percy is one of the more active posters, so that is to be expected.
As for being biased against HNZ, well, I do think I should point out the counterfactual arguments to some of the over exuberant spin from the Heartland fans. As I have stated before on this forum, I would like to see Heartland succeed. But I want to see them earn their stripes, not spin them.
As for 'inconsistent assertions', I would only point out that stating IMO that
1/ Heartland will not become a bank within the nest year and stating that
2/ Heartland will take about three years to become a bank.
are both true statements if Heartland takes about three years to become a bank.
SNOOPY
Thanks for confirmation of 'the Heartlandisation' spreading to other parts of the country Kizame.
I think Percy is onto it when he says that should the banking licence be approved, there is enough 'sign real estate' to add the word 'bank' later. As I said before -clever. I would do exactly the same thing if I was running Heartland.
I would also maximize my shareholder equity for the end of year accounts. And a good way to do this would be to shunt as many transformation expenses into the next financial year as possible. I am pointing this out to shareholders and potential shareholders not because I believe this practice is bad. But I wouldn't want shareholders to think the cash position of Heartland is better than it really is because of the timing of this transformation work.
SNOOPY
PS And yes I like the new look too.