Comments on: Time for ASX, ANZ and friends to start writing Opes Prime cheques http://www.crikey.com.au/2008/04/14/time-for-asx-anz-and-friends-to-start-writing-opes-prime-cheques/ now with extra source Sun, 12 Feb 2012 08:14:27 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Geoff http://www.crikey.com.au/2008/04/14/time-for-asx-anz-and-friends-to-start-writing-opes-prime-cheques/#comment-13056 Geoff Thu, 01 Jan 1970 10:00:00 +0000 #comment-13056 Whatever happened to caveat emptor? My guess is that many of those affected by Opes were experienced corporate execs, who either couldn't or chose not to finance their holding in speculaive, illiquid mining companies through normal, more costly channels. Surely when you are allowed to "borrow" against 80%-90% of the value of these securities when you can only borrow, say, 70% against a Woolworths or equivalent, then the likes of ANZ or Merrill Lynch are either fools OR you need to read the fine print carefully to understand how they can do it! We now all know. There is no such thing as a free lunch, but bull markets have a habit of re-enforcing the "she'll be right culture" . Now everyone is looking for someone to blame. No doubt Opes management have alot to answer for the alleged securities "shuffle" and possible misrepresentation, but to suggest ASX and ASIC are responsible for other people's poor finacial mgt and judgement is a bit rich.Then again an ASX shareholder would say that! Whatever happened to caveat emptor? My guess is that many of those affected by Opes were experienced corporate execs, who either couldn’t or chose not to finance their holding in speculaive, illiquid mining companies through normal, more costly channels. Surely when you are allowed to “borrow” against 80%-90% of the value of these securities when you can only borrow, say, 70% against a Woolworths or equivalent, then the likes of ANZ or Merrill Lynch are either fools OR you need to read the fine print carefully to understand how they can do it! We now all know. There is no such thing as a free lunch, but bull markets have a habit of re-enforcing the “she’ll be right culture” . Now everyone is looking for someone to blame. No doubt Opes management have alot to answer for the alleged securities “shuffle” and possible misrepresentation, but to suggest ASX and ASIC are responsible for other people’s poor finacial mgt and judgement is a bit rich.Then again an ASX shareholder would say that!

]]> By: Steve http://www.crikey.com.au/2008/04/14/time-for-asx-anz-and-friends-to-start-writing-opes-prime-cheques/#comment-13057 Steve Thu, 01 Jan 1970 10:00:00 +0000 #comment-13057 Most people could only borrow at a LVR of 40% up to the value of a $1b company. The maximum LVR was 80% for Blue chip coy's. It was only a few people (Chris Murphy) who were given a 95% LVR that caused the whole thing to collapse. Here's some facts, not just ridiculous commentary. Most people could only borrow at a LVR of 40% up to the value of a $1b company. The maximum LVR was 80% for Blue chip coy’s. It was only a few people (Chris Murphy) who were given a 95% LVR that caused the whole thing to collapse.

Here’s some facts, not just ridiculous commentary.

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