10 seconds into Brexit and the Aussie banks are screwing their customers. Customers rightly want THEIR funds when travelling. NO says NAB and CommBank – we might lose on the exchange rate. We’ll let you know next week if you can have your money.
Do note – It is RETAIL banking they are suspending, so mates get the usual insider trading advantages – business as usual for them and you are locked out.
Meantime, the banks are down at the casino playing the usual game of “Who’s got the biggest balls?” with rich Uncle standing ready to write the cheque for the ‘Too big to fail’ nephew at the table.
Obscene simply does not cover it. Anyone else in business takes a risk and hopes to manage the risk. The banks are in a feeding frenzy as they try to out gamble each other on the pound with taxpayers unwillingly dragged in to clean up the after party mess.
PS – Why would a supposedly strong bank need to limit retail customers trying to get their $1000 a day?
Let’s pretend. 40,000 Aussies want $1000 each – all at once. That’s 40 million (A lot to you and me but nothing to a bank)
Now, the drop in the pound was averaging 10% (TOTAL, over the whole day). It could also swing the other way and, let’s not forget, trades are instant, so the worst case loss for the bank is likely to be a few percent in the instant the exchange takes place (About 0.3 seconds in all probability – I can deliver a web page around the World in as little as 0.27 seconds)
So, 2% of 40 million is $800,000 at stake. But a meltdown and lost customer loyalty is cheaper?
I wonder if they really do have any money in those vaults?