With interest rates at effectively 0%, if I could, I would have refinanced every single loan I could with the Fed. Don't think of these as bailouts ($6.5Bn total is a pittance compared to what others were taking) rather a smart allocation of debt facility. If that debt had to be repaid today, not only was it taken at an ultra low rate, it also now ~40% less to pay back in $A.

IMO it's just a well calculated move on behalf of NAB/Westpac that paid off, and not a sensational 'expose'

The US Fed are a bunch of crooks.They just create money in their computers and loan it to our banks.The derivative scam is said to be worth $1000 trillion.How much of your hard earned money is tied up this scam? The Fed orchestrated the 1930's depression and now this one.The money did not disappear.It just condensed in fewer hands and our Govt is complicit in this whole scam. It ain't over yet.

Thanks for the story.

Why would you believe any of the government bureaucrats or officials.
If there was nothing to hide as the first speaker suggests then why all the secrecy.

Government is stealing from its people whenever and wherever it can get hold of what does not belong to them.

The politicians that run Australia are nothing but complicit players in this.

Will a real leader please stand up. Australia needs a strong leader who is prepared to make decisions that are based on long term benefit and not on a a continuous spin of what is really happening. A leader who is ethical enough that others in the same party will want to do what is best for Australia.

Thank you Kris.

You have exposed the NAB, its CEO and Shareholders for what they are; a pack of selfish, dishonest, cruel and non-intelligent individuals that would not sleep easy on their pillows at night.

The NAB dramatically reduced most of their services [Branches, staff, ATM's]whilst increasing their fees and lack of support during long term loyal customers' business for the past ten years.

After twenty years it is a Building Society for me during 2011.

One for Fair Trading if 'one' has the time, resources and energy.

Australians have choices.

This is actually a post I put together for another reason, but much of it is adaptable here. As far as I am aware, most of the countries claim democratic government – Government by the people for the people. These governments pass laws in contempt of the rights and welfare of many of the people, and want to conceal many from legitimate scrutiny. Concealing the reasons why these laws are made is really a crime against the people, and the people in the governments and others of powerful status who become frantic when despicable and corrupt acts of parliament or of those powerful allies are brought to light. Well, stupid anyway. I realise it is hard for many people to understand that - when Harold Holt, back in the 1950's introduced a 66.6% top tax to keep obscene incomes at bay, it was the only intelligent thing that parliament has ever done, and they have undone at every step since – unless you belong to a political party, then you will only believe what your party tells you.

Stop the presses!

Australian Banks borrow money from the US at advantageous rates!

"Under the program, the Federal Reserve auctioned 28-day loans, and, beginning in August 2008, 84-day loans, to depository institutions in generally sound financial condition"

Shock!

Horror!

"The large Australian banks all have high credit ratings and they have been able to continue to tap both domestic and offshore capital markets on a regular basis."

Where is there the slightest substance to the hysterical "bailout" claims, or the evidence of anything more "secret" than normal inter-bank confidentiality.

This has to be the most sensationalist non-news story ever reprinted here on OLO.

Quite pathetic.

hi chris

the point that pericles and the other critics miss is: to who the loans were made available.

I'll subscribe to you mag, tomorrow.

I have no investment in Westpac or NAB and am turning everything else to gold again.

It seems unlikely that a $1.5 billion loss would send NAB or Westpac 'belly up', given that's equal to their quarterly profit. It seems more likely that they were taking advantage of once in a lifetime credit terms, and that the other banks were silly not to. It also seems like this article is complete nonsense and the author has no idea what they're talking about, despite all the talk of a secret cover up and the apparent discovery of the greatest conspiracy since the JFK assassination.

One more 'startling revelation', the Sydney Morning Herald managed to 'expose' the cover up on the 3rd of December (3 days before Kris's article), found on their website here:

http://www.smh.com.au/business/nab-westpac-tapped-fed-20101202-18i58.html

They naturally took a more objective approach to the information, explaining that NAB and Westpac were the only two Aussie banks that "took advantage of the funding window opened by the Fed", and took the time to contrast these loans with the truly troubled US banks like Citibank, which took an astonishing $1.8 trillion in loans over the period in question.