Australian (ASX) Stock Market Forum

CBA - Commonwealth Bank of Australia

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I must say, I'm completely stunned as to how this happened? How the heck did CBA think they were going to dodge this - make a sly comment to the press, and expect everyone to be happy?

Oh well, there go my CBA profits; and probably then some! :p: I'm very disappointed though, as it looks as though it may have even opened in the green this morning ... only to have this nonsense come up.

I really am just stunned as to how they thought they were going to get away with it :eek: This whole issue has been a mistake, they should have waited for (hopefully) higher prices.

Furthermore, would it not have been insider trading if these insto ivestors knew of the issues before the market did? I really hope this event results in more disclosure by more companies. All of this lying by omission really is hurting the Australian market, you only need to look over at OZL to see the mess it causes. Perhaps I should call CBA and ask for my shares for $1 less as well, afterall - I wasn't told either :D
 
It will be an interesting AGM you would imagine.

The instos may well be looking to push someone out after this schmozzle.

I'll be looking to put some in the bottom draw IF it gets to 24.
 
I still see plenty more room for downside in the banks. If/when they start to report losses instead of profits and cut their dividend payments the current prices may not look as attractive as they do today. And I find it hard to imagine there won't be a few more cap raisings as they go through the coming year given the funding situation and the deteriorating loan books.

Short term there will be technical bounces and rallies but I wouldn't be calling a bottom yet.
 
Nyden said:
I must say, I'm completely stunned as to how this happened? How the heck did CBA think they were going to dodge this - make a sly comment to the press, and expect everyone to be happy?

Oh well, there go my CBA profits; and probably then some! :p: I'm very disappointed though, as it looks as though it may have even opened in the green this morning ... only to have this nonsense come up.

I really am just stunned as to how they thought they were going to get away with it :eek: This whole issue has been a mistake, they should have waited for (hopefully) higher prices.

Furthermore, would it not have been insider trading if these insto ivestors knew of the issues before the market did? I really hope this event results in more disclosure by more companies. All of this lying by omission really is hurting the Australian market, you only need to look over at OZL to see the mess it causes. Perhaps I should call CBA and ask for my shares for $1 less as well, afterall - I wasn't told either :D
Click to expand...

Not really surprised at how CBA has turned out considering their lack of provisioning for bad debts.
Their long-standing argument this year of not requiring any more capital plus their slow realisation that they need to match the Tier 1 capital ratio of the central banks has really torpedoed their credibility.

But you really do have to have to wonder when at the completion of a revision raising, a major bank announces that their bad debt expense would increase from 40 to 50 basis points to approx 60 basis points.

CBA ever heard of due diligence?
 
Now I've seen everything - see announcement just released at 3:17 p.m. today.

Here's an excerpt:

"The Commonwealth Bank today announced that it had terminated the share placement agreement with Merrill Lynch International Australia Limited on the basis that Merrill Lynch did not inform potential investors of the various disclosures made by the Bank in its announcement released to the ASX at 7.30 pm on Tuesday 16 December 2008."

Hello?!? What about continuous disclosure and insider trading.

Apparently the information that CBA released after market yesterday to all of us 'other' investors, about the bad debts increasing, was supposed to be disclosed by Merril to potential investors during the capital raising. So Merril was obliged as part of the agreement to provide market sensitive information not yet disclosed to the market ... interesting.

Is there anything the banks can't get away with at the moment?
 
cuttlefish said:
Now I've seen everything - see announcement just released at 3:17 p.m. today.

Here's an excerpt:

"The Commonwealth Bank today announced that it had terminated the share placement agreement with Merrill Lynch International Australia Limited on the basis that Merrill Lynch did not inform potential investors of the various disclosures made by the Bank in its announcement released to the ASX at 7.30 pm on Tuesday 16 December 2008."

Hello?!? What about continuous disclosure and insider trading.

Apparently the information that CBA released after market yesterday to all of us 'other' investors, about the bad debts increasing, was supposed to be disclosed by Merril to potential investors during the capital raising. So Merril was obliged as part of the agreement to provide market sensitive information not yet disclosed to the market ... interesting.

Is there anything the banks can't get away with at the moment?
Click to expand...

I don't understand why they even released that statement at this time? If the stock is to remain in halt, what's the point? There's no clarification on the issue there, there's no indication of how the new raising went, there's nothing in it - except a big finger pointing in the direction of Merril

Other ann seems to have answered some questions. At least they did manage to flog off 357 mill worth @ 28.37 :)
 
"Now I've seen everything - see announcement just released at 3:17 p.m. today.

Here's an excerpt:

"The Commonwealth Bank today announced that it had terminated the share placement agreement with Merrill Lynch International Australia Limited on the basis that Merrill Lynch did not inform potential investors of the various disclosures made by the Bank in its announcement released to the ASX at 7.30 pm on Tuesday 16 December 2008."

Hello?!? What about continuous disclosure and insider trading.

Apparently the information that CBA released after market yesterday to all of us 'other' investors, about the bad debts increasing, was supposed to be disclosed by Merril to potential investors during the capital raising. So Merril was obliged as part of the agreement to provide market sensitive information not yet disclosed to the market ... interesting.

Is there anything the banks can't get away with at the moment?"

Hahaha... I call bull****...


Seriously... come on ASIC. Here is a company admitting to forcing mandatory insider trading!!!

No wonder Merrill didn't tell their investors. Why should they? It's not their job to pass on information that should be known by the market. Hell!!! I think that is even massively illegal now!!
 
I already got burnt on "capital raising" by other companies last week. So you've got my sympathy on this one, even though I didn't hold CBA this week.

If you don't get it, imagine being a shareholder, and then the company sells lots of other shares for less than your ones without telling you.
 
It's tough being a shareholder these days with all the capital raisings that's going on. With CBA, isn't this their 3rd raising in a month or two already!? How many % has the share lost since its first raising??
 
chops_a_must said:
"Now I've seen everything - see announcement just released at 3:17 p.m. today.

Here's an excerpt:

"The Commonwealth Bank today announced that it had terminated the share placement agreement with Merrill Lynch International Australia Limited on the basis that Merrill Lynch did not inform potential investors of the various disclosures made by the Bank in its announcement released to the ASX at 7.30 pm on Tuesday 16 December 2008."

Hello?!? What about continuous disclosure and insider trading.

Apparently the information that CBA released after market yesterday to all of us 'other' investors, about the bad debts increasing, was supposed to be disclosed by Merril to potential investors during the capital raising. So Merril was obliged as part of the agreement to provide market sensitive information not yet disclosed to the market ... interesting.

Is there anything the banks can't get away with at the moment?"

Hahaha... I call bull****...


Seriously... come on ASIC. Here is a company admitting to forcing mandatory insider trading!!!

No wonder Merrill didn't tell their investors. Why should they? It's not their job to pass on information that should be known by the market. Hell!!! I think that is even massively illegal now!!
Click to expand...


This has got to be the biggest f**k-up in history!
Is there any market that hasn't factored in this screwup yet?
Im am at a loss for words:eek:
 
It takes a mammoth effort to perform such a big screw up. It's not easy at all to screw up things at such scale. I dread to see how CBA goes tomorrow. I feel for those who have bought CBA lately. I am one of them:( I gonna lose a few hundred bucks tomorrow (I said I am new, didn't I?):eek:
 
I am one of them too.

Was my 3rd trade ever. The very next day, this all happens.

But I can't exactly say my research was exhaustive.
 
Through all of this CBA still got all of it's capital raising money which is the most important thing.

Still, it was an interesting screw up.
 
drsmith said:
Through all of this CBA still got all of it's capital raising money which is the most important thing.

Still, it was an interesting screw up.
Click to expand...

No. I actually do not think they did.

Originally it was meant to be 2 billion, but ended up being 1.65 I think.

Fair to say a fair few who had ponied up cash the first time, were certainly not going to the second time around. And fair enough to. Really, just awful.
 
This is very odd. I think the institutions simply used it as an opportunity to extract a greater discount. I mean, come on, is it such a surprise that CBA's bad debts will increase? Are they really that naive?
 
alphaman said:
This is very odd. I think the institutions simply used it as an opportunity to extract a greater discount. I mean, come on, is it such a surprise that CBA's bad debts will increase? Are they really that naive?
Click to expand...

You're right about that ( expectation that bad debts will increase).
But someone messed up in not following the rules for such a capital raising and one can't blame the instos for acting up. After all, they were entitled to assume that all relevant information had been disclosed.
 
Anyone got a pre open depth opening average for CBA?
Just interested in seeing how the market views the current debacle.
I have a feeling this may spike low then be bought up to parity.
 

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