NAB Under Fire While Share Price Continues to Sink
It’s no secret that the four big banks of Australia are facing the reverberations from home loan issues.
The National Australia Bank Ltd [ASX:NAB] is no exception, currently experiencing struggles with the Royal Commission.
This is due to NAB’s home loans not following a proper lending standard, putting many of their customers at risk.
A huge part of NAB’s earnings heavily stand on the mortgage market, recent issues with home loans have dealt more than just a heavy blow to NAB.
Large amounts of risk come from NAB shares, as of today they are trading at $28.72 a share. Their value has decreased over time.
Proper fraud or victims?
The banks aren’t going down without a fight though. NAB chief executive Andrew Thorburn claims that they are the real victims of an apparent corporate fraud.
Police even went as far to search properties in Sydney due to allegations on an NAB employee being in ownership of commissions in regard to approved overinflated invoices.
Mr Thorburn refuses to properly outline how much money had been misused by NAB, merely saying it is an issue for the police to deal with.
The Sydney Morning Herald reported that Mr Thorburn stated:
‘The vast majority of our people are good people, who have integrity and who have — at the heart of what they do — trust. There have been times where people step over the line, and that line is what’s legal and what’s the law, and they commit actions for their own gain, which when they’re found always end in an unfortunate situation for them and their families.’
Mr Thorburn said the banks will need to improve its control measures to reduce impact on shareholders.
Despite NAB’s attempts of defence, Thorburn stated he is not proud of the things his company did, as well as the industry as a whole.
For Money Morning
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