That's what I was thinking. Also when the big 4 suffer a period of loan defaulters they usually increase the margin (between what they pay and what they charge).
Which Aussie bank is best positioned to survive a 1930s style crash?
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That's what I was thinking. Also when the big 4 suffer a period of loan defaulters they usually increase the margin (between what they pay and what they charge).
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The big 4 would be quite safe, but if a crash occured (as one would say recently just about did) I know which bank I wouldnt want to hold my cash or to have shares in, MBL.
"Anyone happen to know of any savings account that your capital is guaranteed by the Government, i cant find any info except that the government had explored introducing some system along those lines ..."
Contrary to popular belief there has not been any such guarantee.
http://www.aph.gov.au/Library/pubs/RN/1996-97/97rn44.htm
Extract of May 1997 Reseach Note in the Parliamentary Library
"Protection of Depositors
Prudential supervision by the Reserve Bank enables it to investigate the affairs of a bank, if that bank is in serious financial difficulty. The Reserve Bank may assume control of the business of the bank until the deposits have been repaid. The depositor protection provisions of the Banking Act 1959 do not constitute a formal guarantee of depositors' funds."
Contrary to popular belief there has not been any such guarantee.
http://www.aph.gov.au/Library/pubs/RN/1996-97/97rn44.htm
Extract of May 1997 Reseach Note in the Parliamentary Library
"Protection of Depositors
Prudential supervision by the Reserve Bank enables it to investigate the affairs of a bank, if that bank is in serious financial difficulty. The Reserve Bank may assume control of the business of the bank until the deposits have been repaid. The depositor protection provisions of the Banking Act 1959 do not constitute a formal guarantee of depositors' funds."
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Well according to an announcement today the answer would appear to be ANZ. not just locally but Globally!
from ANZ anouncement.
ANZ ranked as leading global bank in Dow Jones Sustainability Index.
ANZ today confirmed it had been ranked the most sustainable bank globally in the Dow Jones Sustainability Index (DJSI) for 2007. ANZ achieved a score of 86% in the DJSI which is up 10 percentage points from its score in 2006, having either maintained or improved its performance on 22 of the 23 assessment criteria. ANZ is also the only Australian company to be assessed as a global sector leader in the DJSI.
Tony.
from ANZ anouncement.
ANZ ranked as leading global bank in Dow Jones Sustainability Index.
ANZ today confirmed it had been ranked the most sustainable bank globally in the Dow Jones Sustainability Index (DJSI) for 2007. ANZ achieved a score of 86% in the DJSI which is up 10 percentage points from its score in 2006, having either maintained or improved its performance on 22 of the 23 assessment criteria. ANZ is also the only Australian company to be assessed as a global sector leader in the DJSI.
Tony.
numbercruncher
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Bank run in the UK today, all pretty neat stuff !!
Have we decided on safest Aussie bank ? Suggestion here for ANZ , but i also remember reading that they have huge exposure to NZ property market which seems rather inflated ? What happens if Sheep flu breaks out, the possibilities !
Have we decided on safest Aussie bank ? Suggestion here for ANZ , but i also remember reading that they have huge exposure to NZ property market which seems rather inflated ? What happens if Sheep flu breaks out, the possibilities !
Can't you just buy bonds from the RBA?
http://www.rba.gov.au/FinancialServices/CGBondFacility/index.html
http://www.rba.gov.au/FinancialServices/CGBondFacility/index.html
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Bank run in the UK today, all pretty neat stuff !!
Have we decided on safest Aussie bank ? Suggestion here for ANZ , but i also remember reading that they have huge exposure to NZ property market which seems rather inflated ? What happens if Sheep flu breaks out, the possibilities !
Hi, They've Foot and Mouth disease in Surrey, UK. Fourth time in a Month. It was let out by one of their own laboratories through a corroded drainage pipe.
One of the largest Aussie Banks lent money all over the UK in 2006/7. Have they over-reached themselves?
numbercruncher
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explod
explod
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I think this is the only rock solid advice so far
Even Government Garanteed Bonds failed in the great depression. My Grandfather who served in the 1st war in France came home and lost the lot. With a steel back brace due to massive injuries he was lucky and got a job driving trams. Died later from lung cancer caused by the gas hurled at them in the trenches.
Only the full ownership (debt free) of tangible assets can survive in a full blown crunch. Good property, art and precious metals. When it really bites some long shelf life food and access to your own vegies, chooks and goods to barter producers with as cash will have little value.
The global villiage will level/equalise. We need to realise that our labour cost will have to match that of the workers in third world countries if we want to keep a job. That is why manufacturing has moved off shore.
Anyway, wasting my breath because the complacency will continue till it is far too late. Most on the forums are seeing the reality so will be ok. And I have got right off the subject.
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Macquarie Bank had problems with two of its Hedge Funds when redemptions were stopped by Bear Stearns. The stock price fell 11% at the time.
http://www.bloomberg.com/apps/news?pid=20601081&sid=aojq3bFq7KqQ&refer=australia
http://www.bloomberg.com/apps/news?pid=20601081&sid=aojq3bFq7KqQ&refer=australia
numbercruncher
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I never did get around to properly preparing for the possibility of the worst other than holding some Gold.
Anyone decide which bank is safest to keep your cash with, ive stuck with CBA out of convienience
Actually let rephrase it, which Aussie banks are more likely to face a northern rock scenario ?
Anyone decide which bank is safest to keep your cash with, ive stuck with CBA out of convienience
Actually let rephrase it, which Aussie banks are more likely to face a northern rock scenario ?
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I'm not sure even talking about it is safe these days as the markets are not rational? You would have to look at the banks who have been trying to gain market share recently & have been willing to take on the riskier end of the market to accomplish this; maybe a Bank from the wild West??
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That's exactly what I've been thinking too. In fact, when I was talking to my folks about their term deposit offers, they said that they are doing it to attract deposit aka cheap money.
To find the safest bank, look for one that has a large deposit base and loyal customers, and one that does not accept the riskier loans. e.g. There are a couple of banks I know of that are most likely to refuse a credit card application, and would lend the least when it comes to home loans.
numbercruncher
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Im getting close to going back long, I figure if things get to much worse bank failures could be a possibility, Id much rather have shares in solid companies than cash in a failed bank
numbercruncher
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Why keep cash, empty it and buy stock then you dont have to worry about leaving it in the bank
Exactly! market is getting nearly bearish enough to buy again, Im thinking Friday might show the best prices
Im getting close to going back long, I figure if things get to much worse bank failures could be a possibility, Id much rather have shares in solid companies than cash in a failed bank
oops just realise dont company has cash bank account too hehehehehe
really guys you worry too much.. if the whole banking system failed cash in the bank is not your only worry ..
your job will be gone, your house price would plummet... food inflation hits 1000%
Chill out take the long weekend off and go and sit on a beach some where and drink cocktail hehe..I know I will
If you are referring to our big4, I do not think they have any loyal customers left. They have spent the last 15 to 20 years screwing their staff and customers for all they are worth, for the benefit of their shareholders or is that for the benefit of their C.E.O.'s who's renumeration package has been based on the share performance.
