Bank shares

I was horrified by the interview with the AFR journo on Wednesday about the Murray review on banks. He seemed to think bank shares will drop up to 15%, and dividends will fall, and that the government has given pre-approval! Are you convinced? Would be grateful for your thoughts.

A: Thanks for the comments.


I heard what he said – however, I am in the “wait and see” category. I think some of the news is already priced into the market, and as my colleague Paul Rickard has pointed out, a key issue with any change will be the transition period. If this is lengthy, I don’t think the changes will have that great an impact.


Best regards,


Peter.



Read Answer