National Australia Bank announces 10% recovery on AAA debt

[sappatz]

Its all here. very scary stuff

http://www.businessspectator.com.au/...ial%20services

[Diver]

Wouldn't it be far simpler and safer to offer a fixed term 50% reduction in repayments and interest to the high risk sub prime borrowers in default.

I'm damned if I'd write off 90% just to get a quick (10%) return on a bad debt.

But then again, if these idiots were stupid enough to build dodgy portfolios on sub prime bad risk clients/borrowers, perhaps it is too much to ask for a bit of common sense.

[tim123]

Wouldn't it be far simpler and safer to offer a fixed term 50% reduction in repayments and interest to the high risk sub prime borrowers in default.

I'm damned if I'd write off 90% just to get a quick (10%) return on a bad debt.

They have only "written it off" in Balance sheet terms.

They still hold the paper that may, or may not, be worth that 10% so will be quids in if it is worth more.

This is tax move. You create the loss in a bad year to save some tax in that year. But if the money does come in when times are better, you pay the extra tax out of a good year's results.

tim

[HairyArsedBloke]

Meanwhile entire suburbs in various parts of the States are turned into ghost towns... rapidly become fit only for demolition.

Ah, San Diego has a solution. Reuters: San Diego sues Bank of America to halt foreclosures

Glad it's not our taxes paying for that one.

[Diver]

Meanwhile entire suburbs in various parts of the States are turned into ghost towns... rapidly become fit only for demolition.

Like Manchester ?

[pmeswani]

Like Manchester ?

I'm hoping you are just talking about the Utd footie ground.