this issue was already disclosed in the Westpac 2019 accounts, well prior to the cap raise.
End of case, end of … well this hot air.
Whilst WBC and a few hit around the $30- mark, the underlying issues were actually getting worse … need for capital and this and a few other likely fines.
Now the media … or the share price reflects where things are, with a risk premium, its the end of the world for some.
Even if WBC cut dividend to $1.50 … and they already did cut, knowing the likely scope of this fin of say 800 mio … its a 91 billion company that makes 6 billion a year globally. Yes … its lows yesterday were 20% off the highs of late, but they were, to be blunt idiotic.
At even $1.50 … that’s a 6% yield fully franked … so 8% of so equiv in an interest rate environment where the cash rate is 0.75% and likely to fall to 0.5%.
At $22- and a $1.50 dividend its 6.82% yield and with franking credits around 9% grossed up yield.
So between $25; and maybe … $22- its some value I susspect