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Bank businesses in trouble

Discussion in 'The Economy' started by Tropo, 11th Jul, 2008.

  1. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
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    Location:
    NSW
    11/07/08
    Bank businesses in trouble

    Two thirds of the fifty five Bank of Queensland branches in NSW are in financial distress with some owner/managers criticizing the bank over lack of brand promotion and sales commissions.
    Bank of Queensland's expansion into other states outside Queensland has been driven by franchisees owning and running BOQ branches as small businesses.
    38 of the 55 NSW branches settled less than two million dollars worth of loans in May, well below the bank's target of three to four million dollars per month.
    A former franchisee is taking legal action to stop the bank from repossessing his home, arguing that BOQ contributed to his financial position.

    Source: The Australian Financial Review

    11/07/08
    Credit crunch spreading to real economy

    The global credit crisis that is now almost one year old could be set to get worse.
    Pessimism about the prospects of the US economy have dragged Wall St lower and the ASX has followed, with the ASX/S&P200 falling below 5000 points for the first time in two years.
    Analysts said the credit problems were spreading to the mainstream economy with financial markets now being described as dysfunctional.
    The crisis began last July when US Bank Bear Sterns announced more than $1 billion in sub-prime loan losses in two of its hedge funds.

    Source: The Australian Financial Review