Join our investing community

Australian banks - safe?

Discussion in 'General Investing Discussion' started by disco lemon, 23rd Sep, 2008.

  1. disco lemon

    disco lemon Member

    Joined:
    20th May, 2008
    Posts:
    20
    Hi everyone,

    What do you guys think?

    I listened to a podcast over the weekend on the Standard & Poor website, according to which, NAB has a negative rating and ANZ is also one to watch (not in a good way).

    I also noticed that all the ratings on the website were from Feb 2007, or earlier, which does not take into account the recent turmoil.

    I have all my savings sitting in BankWest at the moment, and am not sure what to think. Is anyone familiar with their new parent company, Lloyds?

    Any light that can be shed on this would be much appreciated :)

    disco lemon
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Disco lemon mate

    Have you got sleepless nights too?? :)

    I personaly wouldn't worry about our banks.

    To answer your 2nd question, all I know is that LLoyds is 1 of UK's biggest banks and they must have a lot of cash because they recently spent £12bn to take over the Halifax Bank of Scotland

    Cheers
     
  3. disco lemon

    disco lemon Member

    Joined:
    20th May, 2008
    Posts:
    20
    Thanks for the info Bill :)

    Off to have a good night's sleep.
     
  4. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    "I personaly wouldn't worry about our banks"

    I wouldn’t be so sure.:eek:
     
  5. Smartypants

    Smartypants Well-Known Member

    Joined:
    2nd Jun, 2006
    Posts:
    226
    Location:
    NSW
    DL, are you talking about investing in the banks or leaving your money sitting in a bank account?

    If the latter, does anyone know what the situation is if/when a bank folds, i.e, what happens to your savings?
     
  6. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
  7. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    I believe you just become a creditor to the failed bank.. sux really.. cash deposits should be government guaranteed. You give the bank money, get nothing from it, and take on the business risk.

    Anyway, I owe the bank far more money than they have of mine, so if the bank does fail, I don't stand to lose anything!
     
  8. disco lemon

    disco lemon Member

    Joined:
    20th May, 2008
    Posts:
    20
    Thanks everyone for your thoughts, and Tropo, for the link.

    Smarty pants, I'm referring to the latter as well.
     
  9. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    CRC

    Sorry to bring you bad news but you will probably find that they will sell your property pocket the money and they could give you a few cent /$ for your savings.

    That's if you get any at all...:eek:

    Trying to take to court a failed business won't get you anywhere either.
    CBA seems like the safest bank at the moment

    Cheers
     
  10. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
  11. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
  12. Jules

    Jules New Member

    Joined:
    10th Oct, 2005
    Posts:
    3
    Are Aussie Banks Safe

    Hello
    My first post on this excellent site, regarding our banks, are our savings say insured against loss or insolvency for what ever reason, like banks in the UK were a depositer is covered up to 35 thousand pounds per banking group, does the Aussie banking system cover our deposits our should I say, does the government???
    Everybody on this site has seen the UK Government nationalize Northern Rock and now Bradford & Bingley because of there debt levels,
    Just watching what is going on overseas and curious do we similar Insurances or Government backing, somebody here on the forum should know?


    Cheers Jules
     
  13. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    That's great! cause my loan is with the CBA anyway..
     
  14. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    unfortunately the government doesn't insure savings.. I used to believe that banks were insured but credit unions and building societies were not.. but I was surprised to learn that your money isn't safe in a bank either.

    essentially you take on the business risk of the bank, yet get no return from them.
     
  15. Jules

    Jules New Member

    Joined:
    10th Oct, 2005
    Posts:
    3
    Thanks crc-error
    For the quick response
    Looks like were on our own, so the Aussie banks could still be involed with the credit crisis overseas, and you the saver lose all the money???
    Thanks
    Jules
     
  16. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    you may as well buy the bank, at least you will share in its profits! if the bank karks it, then both investors and depositors loose anyway..
     
  17. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Jules

    I am sure that in the unlikely scenario where an Oz bank is about to go under
    our Gov will intervene and bail it out.

    The US, UK, Germany, Belgium have done this recently with some banks or mortgage providers.

    Such action should not come to us as a surprise and it's VERY UNLIKELY that we will need to go down this path because the majority of our banks are not exposed much to the US and they are still making billions...:)

    Cheers
     
  18. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    so isn't it better to buy the shares?

    Always buy your straw hats in the Winter - Bernard Baruch
     
  19. Jules

    Jules New Member

    Joined:
    10th Oct, 2005
    Posts:
    3
    Thanks BV and crc
    I think the poor folk in the UK would have been shocked to learn that it was happening to them, and luckily the Government stepped in
    They to believed that there banks were making squillions !!!! or they were led to believe so
    Maybe a good time to buy some financials???
    Cheers Jules
     
  20. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    long term why not?