[staringclown]

Westpac reclassifies $28 billion from owner occupier to investor loans. Oops!

APRA angry as Westpac reclassifies mortgages

Quote

The response from banking analysts has been mixed, with one labelling the mix-up as "embarrassing" and asking whether the revision indicated a lower quality loan book following Westpac's merger with St George.

A statement released to the ASX on December 30 -- the last trading day of the year -- referred to the revision as part of a "legacy" adjustment following the merger three years ago.

 westpacRevisions.jpg (77.73K)
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[Mr Medved]

I am a long-term customer of Westpac (since they bought out Bank of Melbourne). I think they may be the first of the big four to hit the skids. I don't think I'll be risking more than 10k with them... may even move my salary deposits to another bank... the problem is, which one to move to?

[cobran20]

Mr Medved, on 03 January 2012 - 02:07 AM, said:

I am a long-term customer of Westpac (since they bought out Bank of Melbourne). I think they may be the first of the big four to hit the skids. I don't think I'll be risking more than 10k with them... may even move my salary deposits to another bank... the problem is, which one to move to?

The first $250K is guaranteed by the RBA.

[Mr Medved]

cobran20, on 03 January 2012 - 02:44 AM, said:

The first $250K is guaranteed by the RBA.

Well if I'm right that they're the first to hit the skids, then I'm probably better off staying with Westpac so they can soak up any RBA guarantees... and leave the other banks high and dry when the RBA runs empty.

[Solomon]

Mr Medved, on 03 January 2012 - 02:07 AM, said:

I am a long-term customer of Westpac (since they bought out Bank of Melbourne). I think they may be the first of the big four to hit the skids. I don't think I'll be risking more than 10k with them... may even move my salary deposits to another bank... the problem is, which one to move to?

I've just taken out a new car loan, with St George.
How does that effect me if Westpac go belly up?
Can they demand the full return of the capital?

[cobran20]

Solomon, on 03 January 2012 - 10:07 AM, said:

I've just taken out a new car loan, with St George.
How does that effect me if Westpac go belly up?
Can they demand the full return of the capital?

Depends on what is written in the contract. I'd expect that their loan book would be sold at a discount to another financier/loan shark who would be happy to keep receiving your repayments but earning a higher yield.

[staringclown]

Mr Medved, on 03 January 2012 - 07:42 AM, said:

Well if I'm right that they're the first to hit the skids, then I'm probably better off staying with Westpac so they can soak up any RBA guarantees... and leave the other banks high and dry when the RBA runs empty.

Good point.