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NAB will shock Wall Street


12:40PM | 25 Jul 2008 | Robert Gottliebsen

From the Business Spectator.au:

The National Australia Bank's decision to write off 90 per cent of its US conduit loans will have dramatic repercussions around the world. Wall Street will be deeply shocked when they understand the repercussions of what NAB has done. It is clear global banks have nowhere near provided for their exposures to US housing loans which in the words of John Stewart are experiencing a “meltdown”.

More at the link.


ericbzx3 July 29, 2008 - 1:14pm
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( categories: Economics )

Wall Street

will not listen to this. It will not have it.

David Einhorn's recent book on Allied Capital shows the mechanics of fraud in one company that is now clearly pervasive in the financials as a sector. Allied simply refused to mark securities to market, giving a rationalization for some other price, one it made up.

The analysts let them do it.

As Allied fought his short selling, so Paulson and the SEC are doing the same on a massive scale. The battle is now. And Paulson will win for a time, because Wall Street will not have it otherwise.

http://mauberly.blogspot.com/

mauberly July 29, 2008 - 9:07pm
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The SIV toxic waste was a huge shell ...

... game played on the world with many non-US entities ending up holding the bag. There will be a price to be paid for this. I strongly suspect that we are witnessing the beginning of an inevitable decline of the US financial institutions' dominance over the global marketplace.

quax July 30, 2008 - 12:07am
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Top end of town retail giant

down under tells of talking to the Aussie banks re any exposure to sub-prime mortgages months ago. He was told, 'no we don't have any exposure'.

so bank shares drop to $25.00, he buys.
bank shares drop to $20.00, he buys.
bank shares drop to $15.00, he still has cash so he buys some more.

but he is not too sure today...

he has asked the bank people wtf, and they told him, we did not know!

He is forecasting sales on par with Christmas 2007 for the next six months. anything above that is bonus, big bonus.

graham July 30, 2008 - 4:05am
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hahaha. 90%. Holy fuck.

hahaha. 90%. Holy fuck.

Ian Welsh July 31, 2008 - 11:22pm
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It turns out that

Merrill got 6c on the dollar when you discount the deal made with Lonestar for 22c on the dollar. And Merrill rallied. Now contemplate the future writeoffs in the rest of the industry.

"Lone Star, which recently raised $10 billion in two funds, declined to comment. The Lone Star deal will result in a $4.4 billion write-down for Merrill and it will finance about 75 percent of the purchase price, Merrill said."

http://uk.mobile.reuters.com/mobile/m/FullArticle/eUK/CFUNUK/nfundsNews_uUKZWE05495220080730

http://mauberly.blogspot.com/

mauberly August 2, 2008 - 10:32pm
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