Adelaide (Bendigo) Bank still ok?

[Sploosh]

I have a bit of savings with the Adelaide (now Bendigo) Bank... saw in the news today the article below. Do you think the bank is fine, or should I be taking my money out? I have a feeling that the bank is covered by that guarantee Rudd introduced (last year?), but not sure, and also unsure when that runs out (I think it had a reasonably short life-span).

http://www.abc.net.au/news/stories/2009 ... n=business

Bendigo Bank urges staff to take unpaid leave

Posted 8 hours 21 minutes ago

The Bendigo Bank is asking its 5,000 staff to take up to 10 days unpaid leave in a bid to avoid job cuts.

The bank says it is confident the plan will save jobs.

It follows similar calls from some major international corporations, including British Airways.

Bendigo Bank spokesman Owen Davies says a fall in demand for credit means the bank now has too many staff.

But he says the measure should help the bank avoid job losses while the economy recovers.

"Rather than take the traditional approach of redundancies or shifting jobs offshore or closing branches, we've opted to go to our staff with a voluntary program," he said.

"That way we can reduce our costs, and at the same time retain all our capability to grow as the economy recovers again."

Mr Davies says it is a short-term measure.

"We think people in our company have got a really good team ethos, so we're expecting a good take up, if we get that then there's every chance we can get these short-term revenue challenges and retain full staff," he said.

The Finance Sector Union (FSU) is urging staff to consider the move.

But the union's national secretary, Leon Carter, is unhappy at what he calls a lack of consultation with staff.

"These sorts of situations aren't solved by decrees from on high, they're resolved by sitting down and talking with staff and the union," he said.

"Because at the end of the day, Bendigo [and Adelaide Bank] staff and the FSU want to maximise employment."

He says urgent discussions with the bank are needed.

"Long-term solutions to the global financial crisis aren't going to be achieved by some people taking leave and others not," he said.

"If there has to be a long-term solution, let's sit down with the bank, talk to them about it, and figure out a solution."

There are more than 400 Bendigo Bank branches across Australia.

[Dog_ger]

If you live in Adelaide?

Why would you entrust your hard earned %$$$% to Bendigo...?

[aceman]

See post started on June 22nd on this subject. It may be the end of the line for the Adelaide Bank.

[Dogwatcher]

Just a bit of extra info - that 10 days doesn't have to be taken all at once. It can be taken over a 10 month period (information I received today).

I'm sure i'll have a bit more info on this a bit later.

[dedja]

Nothing to worry about ... your money is safe.

Any potential change in ownership will not alter this.

[aceman]

Nothing to worry about ... your money is safe.

Any potential change in ownership will not alter this.

Confucious also say....man who put cream in tart, not always baker!

[dedja]

If you are claiming that the funds held by Bendigo Bank are at risk, as opposed to change of ownership or staffing issues, then that is a very serious and unsubstantiated claim indeed.

There is absolutely no correlation of ownership/staffing to the security of funds held by the bank.

[Sploosh]

Whether there is a takeover or not, as long as the bank still exists (under whatever name) then all is ok. But, obviously I don't want to se my money disappear. Yikes, Aceman's posts in the other thread are spooky. Maybe I need to start looking at putting it elsewhere? I'd better read up on that bank guarantee, if I can find the info.

[Sojourner]

Credit Unions and Building Societies become Banks so that the Federal Government will guarantee their funds. Its just yet another thing for people to consider when choosing which one to go with!

[aceman]

If you are claiming that the funds held by Bendigo Bank are at risk, as opposed to change of ownership or staffing issues, then that is a very serious and unsubstantiated claim indeed.

There is absolutely no correlation of ownership/staffing to the security of funds held by the bank.

Not claiming anything of the sort. I am putting forward what I have been told by people within the establishment and the feelings of many of the staff. It has been said by many of them that a big change is in the wind, what it may be they are not sure about. Obviously peoples funds are not at risk nor have I ever mentioned that they would be..
I simply say again, the Bendigo/Adelaide Bank merger hasn't worked, staff are more than concerned for their welfare and normally when there is a rumble in the jungle, the animals become restless.
Just for the record, I have many of their shares and they have plummeted from $13.50 to $6.00 so if you think I'm happy about it, think again!

[dedja]

Thanks for clarifying aceman ... I wanted to distinguish the 2 issues (which you have now done) to assist Sploosh for the original question of this topic.

Any uncertainty for staff and shareholders is totally understandable ... I've been in that position before myself and it's not nice.

[smac]

Credit Unions and Building Societies become Banks so that the Federal Government will guarantee their funds. Its just yet another thing for people to consider when choosing which one to go with!

There's no difference in security of your money when considering non bank FIs and banks.

CU's and BS's are covered by the same prudential regulations as Banks. They are required to hold the same reserves and report in the same manner. The Federal Government only very recently starting guaranteeing deposits as a result of the global financial crisis, and that was because they knew under the prudential regulations that they were backing a winner (to be honest, I don't know if they are guaranteeing banks only or non bank FIs as well). Until that time, there was no guarantee on any funds, anywhere.

[Dutchy]

Id be more worried if I had my mortgage with them, what does a business do when short of cashflow? Sell Assets..What is a banks biggest assets? The loans it gives.....exactly what happened in the US

[pipers]

LOL @ some of the comments on this thread...

Stick to footy where you might have some idea what you're talking about...

[dedja]

Id be more worried if I had my mortgage with them, what does a business do when short of cashflow? Sell Assets..What is a banks biggest assets? The loans it gives.....exactly what happened in the US

But Dutchy, it's this type of 'hysteria' which causes runs on financial institutions which makes the situation worse ... the regulated financial system in Australia is light years ahead of the free for all that the US had in place when the crisis began.

The funds in Bendigo Bank are totally secure FFS.

[Dutchy]

Id be more worried if I had my mortgage with them, what does a business do when short of cashflow? Sell Assets..What is a banks biggest assets? The loans it gives.....exactly what happened in the US

But Dutchy, it's this type of 'hysteria' which causes runs on financial institutions which makes the situation worse ... the regulated financial system in Australia is light years ahead of the free for all that the US had in place when the crisis began.

The funds in Bendigo Bank are totally secure FFS.

Fair enough if you want to bank with a piggy bank

[smac]

LOL @ some of the comments on this thread...

Stick to footy where you might have some idea what you're talking about...

You could enlighten us with your wisdom then, surely?

[pipers]

LOL @ some of the comments on this thread...

Stick to footy where you might have some idea what you're talking about...

You could enlighten us with your wisdom then, surely?

As an employee we aren't really meant to make public comment on any matter, but it's hard as several posts here (about the market and regulatory capital requirements and securities that banks hold) are wrong on so many counts that it really needs correcting...

But where do I start...?

[Psyber]

...Just for the record, I have many of their shares and they have plummeted from $13.50 to $6.00 so if you think I'm happy about it, think again!

I bought shares in the big banks back in 2003-04, but didn't go futher down the pecking order than St George - which means I now have a double dose of Westpac.
I expect one of the big boys will take over Bendigo, and parity won't be too bad as they are all down.

[pipers]

Would Dutchy perhaps care to disclose his employer?