I was sent this interesting article written by Kris Sayce of Money Morning. Money Morning is an intelligent commentary (of which I thoroughly enjoy reading) about important financial matters. Stories that you won’t necessarily hear from mainstream media. For example, this article that I would like to share with our Australian readers.
Just when you thought that Australian banks weren’t in the chaotic state of other banks worldwide… you read about this.
NAB and Westpac Bank receiving secret loans from the Federal Reserve Bank in the US…Yes you read right!
This is what the Reserve Bank of Aust had to share, right before the NAB sort the FED’s help:
The Australian financial system has coped better with the recent turmoil than many other financial systems. The banking system is soundly capitalised, it has only limited exposure to sub-prime related assets, and it continues to record strong profitability and has low levels or problem loans. The large Australian banks all have high credit ratings and they have been able to continue to tap both domestic and offshore capital markets on a regular basis.”
How silly must they feel now that the cat is out of the bag…
Let me ask you this…”do we really believe that the recent NAB banking problems were caused by a computer glitch”??