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National Australia Bank Billion Dollar Write-down

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Credit crunch: Australian bank adds £480m to write-downs

* Jill Treanor

* The Guardian,

* Saturday July 26 2008

* Article history

National Australia Bank, owner of Clydesdale and Yorkshire, unsettled the banking sector yesterday by raising its credit crunch write-downs to A$1bn (£480m) and suffering the biggest one-day fall in its share price since the 1987 crash.

The fresh write-down of A$830m came as the Australian bank played down suggestions that it might take part in a break-up bid for the troubled mortgage lender HBOS.

"We're not sure this is a clever time to make acquisitions," said John Stewart, the former Barclays executive who runs NAB.

Shares in British banks, which are preparing to report first-half profits, were knocked, although HBOS and Barclays eventually ended the day higher.

At the end of a week in which the vast majority of its shareholders failed to support its rights issue, HBOS was said to be facing a bid from a consortium being put together by US bank JP Morgan. Earlier in the week HBOS had been cited as a target for Spanish bank BBVA.

NAB had been in talks to buy part of Royal Bank of Scotland's Australian businesses but pulled out last week.

RBS is close to selling its stake in the Tesco Personal Finance joint venture to the supermarket chain for as much as £1bn. Benny Higgins, a former executive of both HBOS and RBS, is thought to have been approached about running the venture.

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Read this from the Australian Business Spectator:

The National Australia Bank's decision to write off 90 per cent of its US conduit loans will have dramatic repercussions around the world. Wall Street will be deeply shocked when they understand the repercussions of what NAB has done. It is clear global banks have nowhere near provided for their exposures to US housing loans which in the words of John Stewart are experiencing a “meltdown”.

We are now way beyond sub-prime. NAB says that it is suffering a 55 per cent loss on American housing loans – an event that has never happened in the history of a developed country in recent memory. This is an unprecedented event and means that the cost of bailing out the US financial system is now far beyond the highest estimates. A US recession is now locked in, but more alarmingly, 55 per cent loan losses point to the possibility of a depression.

A bit different to all the pollyanna-ish stuff of late!

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'NAB says that it is suffering a 55 per cent loss on American housing loans'

Well, that'll teach em'...have to ask why an Australian institution such as this would be messing about in the US mortgage market...PURE GREED...I guess.

Not content with winning just about everything in sport they want to play the global finance game too....at last we have evidence of something that they are not all that good at!!!

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Guest Winnie

By Monday this will even have permeated the Epcot-sized brains of Wall Street. They usually ignore any news beyond about Tallahasseee....but this may just jolt their insular brains into stopping and reversing the preposterous (even to a monkey) financials rally.

Conduits are where it is all going to go down the to*let...............

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'NAB says that it is suffering a 55 per cent loss on American housing loans'

Well, that'll teach em'...have to ask why an Australian institution such as this would be messing about in the US mortgage market...PURE GREED...I guess.

Not content with winning just about everything in sport they want to play the global finance game too....at last we have evidence of something that they are not all that good at!!!

I believe that they did so due to repeated requests from large clients (I read into that Superannuation funds aka retirement funds). I'd say the greed came from those large clients.

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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