|
|
|||
   |
As I’ve been saying repeatedly, Australian banks have not yet reached peak credit losses in the current cycle and all will be forced to raise new equity and/or cut dividends. Just 2 weeks after ANZ raised in excess of $2.2 billion, NAB announced today that they will raise a total of AUD$2.75 billion [...] It seems NAB is employing the same mark to fantasy accounting treatments as US banks. According to law firm Maurice Blackburn, NAB failed to disclose the true value of its exposure to toxic CDO’s. From the Daily Telegraph: NAB’s toxic debt digging a $4bn black hole NATIONAL Australia Bank could be prompted into [...] Yesterday NAB reported a -22% drop in cash earnings from the same period in the prior year. Cash earnings should be your focus not the headline number which includes some questionable accounting gains on mark to market of certain assets and liabilities. The result included better trading income offsetting lower fee income and [...] |
|
|
|
|
|||