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Australian banks not immune from credit crunch

Discussion in 'General Investing Discussion' started by Tropo, 15th Jul, 2008.

  1. Tropo

    Tropo Well-Known Member

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    14/07/08
    Australian banks not immune from credit crunch

    The second largest independent mortgage bank in the USA has failed after it was left short of funds by a run of depositors on Friday.
    California based IndyMac Bancorp, with $US32 billion in assets is the biggest bank to fail since the beginning of the credit crisis one year ago.

    Analysts say the crisis will get worse and Australian banks are not immune to the problems affecting global markets.
    NAB last week said it had provisioned $AUD1.1 billion for bad debts.
    Fears that US mortgage giants Freddie Mac and Fannie Mae may be in trouble from bad loans also affected markets in the US and London on Friday.

    Source: Sunday Age
     
  2. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Brisbane
    I think the important word to focus on here is provisioned. Just because they've set aside that money, doesn't mean any or all of it will be used.

    Mark