ANZ Bank Losses

Some quotes from a report from 'The Age' in Australia on ANZ Bank's shock results: "I would recommend all of you visit London and New York in the near future just to see the effect of what is really happening there," Mr Smith said. "This is a financial services bloodbath and I think the Australian banking system is in remarkably good shape in comparison." ANZ will put aside $US200 million ($A220 million) as a provision against agreements it entered into with New York-based bond insurer ACA Capital, which has become imperilled as billions of dollars in loans given to people in the US with poor credit have failed........ Mr Smith said accounting standards required the bank to account for the losses on the derivatives, though it was likely they would regain their value when conditions changed. An ANZ spokesman said the companies represented included Fortune 500 companies in the US and Western Europe. "For ANZ to experience an actual loss on this exposure, it would require a significant number of what is a large and well-diversified portfolio of corporate names to go belly-up around the world," Mr Smith said. "If that happens, we're looking at an Armageddon situation."