Friday, October 26, 2012

Australian banking fiasco

In Auditor gave Banksia accounts a tick the Sydney Morning Herald reports that
"Auditors gave Banksia Securities a clean bill of health less than four weeks before its collapse last night, its latest accounts show. The non-bank lender's fall into receivers' hands has left thousands of investors in limbo over the fate of about $660 million in investments."
This banking collapse is a matter of national concern, as the SMH reports:

"Premier Ted Baillieu received a briefing from the receivers today and said the government was concerned about the impact of Banksia’s collapse on regions.
‘‘The financial position of Banksia and the regulation of this corporation is a matter for the Commonwealth and ASIC,’’ Mr Baillieu said."
The auditors clearly missed something important in their report.

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