Comments on: How Big Are Australian Banks? http://www.stubbornmule.net/2009/03/australian-banks/ Obstinately objective Thu, 29 Jul 2010 16:35:36 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Reduce, Re-use, Recycle | Stubborn Mule http://www.stubbornmule.net/2009/03/australian-banks/comment-page-1/#comment-5447 Reduce, Re-use, Recycle | Stubborn Mule Wed, 06 Jan 2010 03:13:22 +0000 http://www.stubbornmule.net/?p=1633#comment-5447 [...] Mule have touched on aspects of the global financial crisis, including Moody’s Colossal Bug, How Big Are Australian Banks?, AIG and DZ Bank: Dumb and Dumber and Shoots Are Greener in Australia?. But the single most popular [...] [...] Mule have touched on aspects of the global financial crisis, including Moody’s Colossal Bug, How Big Are Australian Banks?, AIG and DZ Bank: Dumb and Dumber and Shoots Are Greener in Australia?. But the single most popular [...]

]]> By: stubbornmule http://www.stubbornmule.net/2009/03/australian-banks/comment-page-1/#comment-2916 stubbornmule Tue, 10 Mar 2009 03:33:20 +0000 http://www.stubbornmule.net/?p=1633#comment-2916 @Orange Tim: I agree that Chinese banks are a different case. Not only are they State-owned, but the transparency of their reporting could be called into question. Given some of the stats I've heard about vacant office space in major Chinese cities, there biggest problems may still be to come. It is quite amazing how these sound-bite stats get a life of their own. At least the Duffie AAA furphy doesn't seem to have been repeated in the press. @Orange Tim: I agree that Chinese banks are a different case. Not only are they State-owned, but the transparency of their reporting could be called into question. Given some of the stats I’ve heard about vacant office space in major Chinese cities, there biggest problems may still be to come.

It is quite amazing how these sound-bite stats get a life of their own. At least the Duffie AAA furphy doesn’t seem to have been repeated in the press.

]]> By: Orange Tim http://www.stubbornmule.net/2009/03/australian-banks/comment-page-1/#comment-2915 Orange Tim Tue, 10 Mar 2009 03:14:40 +0000 http://www.stubbornmule.net/?p=1633#comment-2915 Yes, the world's 3 biggest banks are all Chinese, but they are also all State owned. So there is no problem in them accessing China's massive foreign exchange reserves which has been done in recent years. And yes, there are sections of the media that need to check their facts, check them again and get them right. That's what researchers are for. The problem is when so called facts like these get out initially, it's very difficult to correct them. This can be said for any number of issues, not just financial. Yes, the world’s 3 biggest banks are all Chinese, but they are also all State owned. So there is no problem in them accessing China’s massive foreign exchange reserves which has been done in recent years.

And yes, there are sections of the media that need to check their facts, check them again and get them right. That’s what researchers are for. The problem is when so called facts like these get out initially, it’s very difficult to correct them. This can be said for any number of issues, not just financial.

]]> By: stubbornmule http://www.stubbornmule.net/2009/03/australian-banks/comment-page-1/#comment-2914 stubbornmule Tue, 10 Mar 2009 02:45:56 +0000 http://www.stubbornmule.net/?p=1633#comment-2914 I just listened to <a href="http://www.lowyinstitute.org/Publication.asp?pid=989" rel="nofollow">Keating's speech to the Lowy Institute</a> and he is perpetuating the same errors. He claimed the majors were among only 12 AA rating banks and that all were among the top 9 banks in the world. When will they get it right? I just listened to Keating’s speech to the Lowy Institute and he is perpetuating the same errors. He claimed the majors were among only 12 AA rating banks and that all were among the top 9 banks in the world. When will they get it right?

]]> By: stubbornmule http://www.stubbornmule.net/2009/03/australian-banks/comment-page-1/#comment-2901 stubbornmule Mon, 09 Mar 2009 00:41:22 +0000 http://www.stubbornmule.net/?p=1633#comment-2901 Here is the <a href="http://www.abc.net.au/tv/qanda/txt/s2502620.htm" rel="nofollow">Q&A transcript</a> where Costello said the following: <blockquote>PETER COSTELLO: No, it was established in 1997. We now have four Australian banks which are amongst the only 12 banks in the world that are AA rated. We now have four Australian banks which are amongst the 20 largest by market cap. I think your own deputy prime minister recently told the Davos Forum, quite rightly, that Australia had a very successful system of financial regulation.</blockquote> At least, unlike Duffy, Costello knows that the banks have a AA rating not AA. However, by my reckoning, only two of the four majors are in the top 20 by market capitalisation and there are at least 21 AA rated banks not 12: Santander Wells Fargo Westpac BNP Paribas CBA BBVA nab Hang Seng Bank ANZ Banesto HSBC Royal Bank Of Canada Intesa Sanpaulo Bank Of New York Mellon Toronto-Dominion Bank Of Nova Scotia Credit Agricole Societe Generale Nordea ING Svenska Handelsbanken Here is the Q&A transcript where Costello said the following:

PETER COSTELLO: No, it was established in 1997. We now have four Australian banks which are amongst the only 12 banks in the world that are AA rated. We now have four Australian banks which are amongst the 20 largest by market cap. I think your own deputy prime minister recently told the Davos Forum, quite rightly, that Australia had a very successful system of financial regulation.

At least, unlike Duffy, Costello knows that the banks have a AA rating not AA. However, by my reckoning, only two of the four majors are in the top 20 by market capitalisation and there are at least 21 AA rated banks not 12:

Santander
Wells Fargo
Westpac
BNP Paribas
CBA
BBVA
nab
Hang Seng Bank
ANZ
Banesto
HSBC
Royal Bank Of Canada
Intesa Sanpaulo
Bank Of New York Mellon
Toronto-Dominion
Bank Of Nova Scotia
Credit Agricole
Societe Generale
Nordea
ING
Svenska Handelsbanken

]]> By: mark http://www.stubbornmule.net/2009/03/australian-banks/comment-page-1/#comment-2855 mark Thu, 05 Mar 2009 11:56:04 +0000 http://www.stubbornmule.net/?p=1633#comment-2855 You may have answered this before, but what's going on when politicians of all stripes claim the AAA status? They were doing it again tonight on QandA. What is the statistical malfeasance here? You may have answered this before, but what’s going on when politicians of all stripes claim the AAA status? They were doing it again tonight on QandA. What is the statistical malfeasance here?

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