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ANZ - AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED


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There's an appropriated named thread called "Banks" where people are free to bash and beat the crap outta banks until their balls drop off. Why is all the negativity being focused on the one pillar? Opus Prime wasn't the only casualty of a rather grim 08'. This may not be rosy from the perspective of OP shareholders but, whether ex-ante or ex-post, risk management is still risk management. ANZ Nominees was a shareholder just like the other shareholders. Simply holding the identity of ANZ does not make it any more or less greedy than the rest of the cohorts who invested their time, money and hopes in OP...and lost. Now it's just a case of vultures waiting at the doorstep for carrion, except lately some of the cannibals are getting quite impatient and have begun devouring fellow would-be fortune seekers. Such is life, says the regulators.

 

Ferret, I will give you the benefit of the doubt and presume you are trying to be funny. Tis the season to be jolly right?

 

Busting the banks:

All three "possibilities" require systematic and coordinated action. If not for the works of John Nash and Game Theory, I might just have been bought in. Essentially, the cost and risk of ending up being the lone sucker holding the plate dissuades them from becoming onerous of such obligations. Point 3 is interesting. If we had all behaved as such, then perhaps this recession might have taken a different turn. Wasn't credit, over-leveraging, the problem to begin with?

 

I believe that we have an operable and viable banking system. Many people would readily tear off my head and sh!t down my neck just for trying to purport that, but you should probably hear me out first before letting loose the hounds.

 

> Banks passing on rate cuts - done more out of political correctness than managerial discretion but, irrespective of the motive, it is still a credible manifestation in the wake of an incredible series of money market volatility.

> Limited OBS activities - restricted conduct in the areas of so-called "risk-managed" hedging, sub-prime and low-doc loans, contingencies and credit line commitments means a greatly mitigated exposure to the escalation of preceived credit default risk and business risk in general.

> Regulatory capital adequacy - timely rollout of BASEL II helped to silence much of the speculative grave-digging which had gone on at the height of the credit crisis witch hunt.

> Rationalization - necessity has played well its part as a key motivator of tangible cost management. We still stand to see a profit, which is far from what could be said for foreign institutions - it's all relative.

> Fees - not much of a change here. Just count your lucky stars they didn't go up. Oops, too late. But seriously, prudent consumers with a sufficient amount in their accounts and exercising control over their monthly transactions (with a plan) may altogether avoid fees if any. ANZ allows me to maintain two access accounts (savings & cheque) without fees so long as I keep above 2k and within 10 withdrawals a month.

 

So before you start showing teeth, just be glad that our pillars are still standing cuz that roof they call the ALL ORDS that's hanging precariously over your head is a heavy burden and isn't going to hold itself up. Things could've been much much worse than what they are. Enjoy the January cut.

 

BTW - I'm an ANZ investor with a small insignificant, but nevertheless marketable, parcel. I personally hope their shares do well if not for my own vested interest then for the fact that any indication of sustainable rallying would signal a much needed broader rally. That's how our economy is set up. Regulators understand the conundrum and have learned to accept certain elements of what is and has been the manifested price of capital efficiency.

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Just to get this thread back to the subject ie ANZ, not banks in general, I have had various dealings with all the banks over the past few decades, and the one bank that stands head and shoulders above the rest in treating me as a valued customer and with respect, is ANZ. So happy with the service I went out and bought the company, well some of it anyway, well a tiny proportion of some of it....

 

cheers

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To be perfectly honest, all banks are @r$3h0l3$. Seriously, every last one of them - this one included. Truth be told though, we need these assholes in our ranks to keep the wheels greased. It's like getting one's daily intake of fibre. Without bran I would be constipated...okay okay, more constipated. Likewise, without the critical services provided via financial intermediation, our economy would be stuffed...packed to the rafters, literally.

 

The thing which impressed me about THIS particular bank was its serial track record, at least YTD, of straight talking and presenting price-sensitive announcements to the market in a rare matter-of-fact manner. This characteristic is something of which has become increasingly precious as companies struggle with presentation whilst ignoring for the most part the core contents of their business AS IS.

 

Throughout the year, management announced rather matter-of-factly a series of larger than anticipated share of bad debt provisions. Even though the market expected a much worse case scenario than what had been stated by official channels, investors had expected their banks to own up to much less. They expected management to lie through their teeth. Share prices were ravaged in the aftermath, as was expected. However, MacFarlane and Smith's decision to treat unrealized losses as losses proper, rather than as honey-coated contingent liabilities, was of great assistance towards share price moderation.

 

ANZ at the time had maintained, and continues to expand upon, its capital interests in Asia. This was not taken too kindly by investors worried about excess baggage. In response, ANZ ramped up FDI activities in an uncertainty environment - much to the dismay of risk-averse doomsayers. Foolhardy or calculated risk, the move has paved way for strategic economies of scale which may just put ANZ ahead of the pack in terms of growth potential once the credit cycle eases. 5 Dec 08 - 800 jobs axed despite being profitable. Controversy for the media, gun to the head for the terminated and yet, little more than a timely reminder to the market of the need to rationalize and keep real in a world that's completely devoid of freebies.

 

Oh, one last thing - the disclaimer:

 

I have a vested interest in ANZ securities as listed on the ASX. This is a biased post so readers are encouraged to subscribe to the DYOR policy. It is in the author's private interest to see the market value of the said institution rise and rise and rise. The author is a careless dreamer hoping that words alone can carry the share price to $100 a pop which would allow him to retire at 24. Quite often though, this forum and its participants' contributions have served as a timely "wake up" clonk on the head.

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In reply to: jfgao on Thursday 11/12/08 03:15pm

"To be perfectly honest, all banks are @r$3h0l3$. Seriously, every last one of them - this one included. Truth be told though, we need these assholes in our ranks to keep the wheels greased. It's like getting one's daily intake of fibre. Without bran I would be constipated...okay okay, more constipated. Likewise, without the critical services provided via financial intermediation, our economy would be stuffed...packed to the rafters, literally."

 

Don't get sucked in, "Truth be told though, we need these assholes in our ranks to keep the wheels greased." , there are better ways, I'll get back to you on the weekend and post in the Banks Forum/Thread.

 

Regs

 

TF

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In reply to: TheFerret on Thursday 11/12/08 03:26pm

I would suggest Dr Metamuscil to compliment your bran requirements! http://www.sharescene.com/html/emoticons/graduated.gif

 

Seriously though ANZ have behaved disgracefully in regards to this entire fiasco. In PR respects it is shaping up to be an albatross around it's neck for years to come. Remanicent of WBC's Swiss Loans affairs.

 

But if it were any other bank that had gotten itself into this position I doubt that they'd be behaving any differently. Just like that Scorpian stinging the frog or turtle that gives it a lift across a flooded river, the answer is.... it's in their nature.

 

Corporations like to play the model citizen, but if you were to ask a psyciatrist to describe a corporation in terms of human personality types, they would inevitably be described as Psychopaths. Self absorbed, self interested and unable to feel the slightest degree of empathy.

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In reply to: disco stu on Thursday 11/12/08 06:00pm

QUOTE
Corporations like to play the model citizen, but if you were to ask a psyciatrist to describe a corporation in terms of human personality types, they would inevitably be described as Psychopaths. Self absorbed, self interested and unable to feel the slightest degree of empathy.

 

That certainly was a great doco wasn't it! Inevitably makes you think twice before you order that hamburger & milkshake...or should I say sh!t burger & pus shake? Go CAPITALISM!!

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