Australian banks not immune from credit crunch

Discussion in 'Share Investing Strategies, Theories & Education' started by Tropo, 15th Jul, 2008.

Join Australia's most dynamic and respected property investment community
  1. Tropo

    Tropo Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,303
    Location:
    NSW
    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
     
    Tropo, 15th Jul, 2008
    #1
  2. Mark Laszczuk

    Mark Laszczuk Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    602
    Location:
    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
     
    Mark Laszczuk, 15th Jul, 2008
    #2