Australian banks - safe?

disco lemon · 23-09-2008, 12:53 AM

Hi everyone,

What do you guys think?

I listened to a podcast over the weekend on the Standard & Poor website, according to which, NAB has a negative rating and ANZ is also one to watch (not in a good way).

I also noticed that all the ratings on the website were from Feb 2007, or earlier, which does not take into account the recent turmoil.

I have all my savings sitting in BankWest at the moment, and am not sure what to think. Is anyone familiar with their new parent company, Lloyds?

Any light that can be shed on this would be much appreciated

disco lemon

Billv · 23-09-2008, 01:05 AM

Disco lemon mate

Have you got sleepless nights too??

I personaly wouldn't worry about our banks.

To answer your 2nd question, all I know is that LLoyds is 1 of UK's biggest banks and they must have a lot of cash because they recently spent £12bn to take over the Halifax Bank of Scotland

Cheers

disco lemon · 23-09-2008, 02:58 AM

Thanks for the info Bill

Off to have a good night's sleep.

Tropo · 23-09-2008, 07:04 AM

"I personaly wouldn't worry about our banks"

I wouldn’t be so sure.

Smartypants · 23-09-2008, 07:19 AM

DL, are you talking about investing in the banks or leaving your money sitting in a bank account?

If the latter, does anyone know what the situation is if/when a bank folds, i.e, what happens to your savings?

Tropo · 23-09-2008, 10:08 AM

"If the latter, does anyone know what the situation is if/when a bank folds, i.e, what happens to your savings?"

Some info is here:
Frozen Bank Accounts Legal Information Letter
FDIC Insurance Limits: What If My Bank Fails? Make Sure Your Money Is Covered » My Money Blog
Â» How To Protect Your Bank Account With Full FDIC Insurance Coverage

crc_error · 23-09-2008, 11:09 AM

Quote:

Originally Posted by Smartypants

If the latter, does anyone know what the situation is if/when a bank folds, i.e, what happens to your savings?

I believe you just become a creditor to the failed bank.. sux really.. cash deposits should be government guaranteed. You give the bank money, get nothing from it, and take on the business risk.

Anyway, I owe the bank far more money than they have of mine, so if the bank does fail, I don't stand to lose anything!

disco lemon · 23-09-2008, 11:45 AM

Thanks everyone for your thoughts, and Tropo, for the link.

Quote:

Originally Posted by Smartypants

DL, are you talking about investing in the banks or leaving your money sitting in a bank account?

If the latter, does anyone know what the situation is if/when a bank folds, i.e, what happens to your savings?

Smarty pants, I'm referring to the latter as well.

Billv · 30-09-2008, 01:38 AM

Quote:

Originally Posted by crc_error

Anyway, I owe the bank far more money than they have of mine, so if the bank does fail, I don't stand to lose anything!

CRC

Sorry to bring you bad news but you will probably find that they will sell your property pocket the money and they could give you a few cent /$ for your savings.

That's if you get any at all...

Trying to take to court a failed business won't get you anywhere either.
CBA seems like the safest bank at the moment

Cheers

AsxBroker · 30-09-2008, 06:34 AM

ANZ and NAB have been priced as riskier in the market.

Slide 10 gives an idea of where St George Bank fits with the number of doubtful debts being around 0.18% as at March 2008. http://www.stgeorge.com.au/resources...e_AIC_2008.pdf

Cheers,

Dan

PS This is general information and not advice to buy, sell or hold any investments.