From Chanticleer:
Westpac Banking Corp’s decision to share the pain of higher capital charges with shareholders and home loan borrowers will deliver a big jolt to the economy.
Westpac customers with about $185 billion in mortgages will face higher monthly repayments from November.
While the customers share the pain, shareholders are being asked to pay up to ensure their bank is able to cope with a downturn in the economy.
…One of the considerations that prompted Westpac’s decision to raise capital before its full year results release on November 2 was the potential for hedge funds to attack the bank.
