100% incompetent

I'm so glad my parents can afford me an overseas education!
Refer THE STAR newspaper dated 10th August 2009 "Start in English and end in English".
Flip-flop decision. If I ever were to hire such people, he'll be out instantly. FIRED for incompetency!

Proud of my nation, embarrass with my "leaders".

Hope I ain't too late to wish a few people:
My cousins, who are also my friends and also my brothers : Max Thum Chun Mun and Veneon Siew Soon Wai . Best of luck with the results!

Disney

Howitt Hall had Disney marathon movie last night and it was awesome. Four (4) movies were played back-to-back but i only watched the first two (2) namely, Alladdin and Mulan. The third and final which i skipped was Lion King and Beauty & the Beast. Awesome classical movies. Bring back so much of childhood memmories and I'm saying not because everyone says that but it was true feeling felt while watching it. Songs are still stuck in my head this morning but by now die down adi. Good show, kudos to the planning team. "Let's get down to business..." (Mulan); "I can show you the world..." (Alladin).
WohoO!!!

5HDs

My units:
1) Advanced Financial Accounting Theory & Practice
2) Financial Management
3) Taxation Law
4) Corporation Law & Trust
5) Marketing Theory & Practice

Aim: 5HDs (2 Law paper; 1 Advanced paper; 1 Finance paper; overload marketing paper)
Watch out! will put my ass on the chair 24/7 if I have to in order to secure the HDs.

I'm Screwed for sure

Never knew accounting can be that difficult. Company reporting is already killing, i wonder what would happen for Advance Financial Accounting in Year 3.

Last paper on Monday

MAHAI!!!!! everyone finish exam except me..Wtf! Company reporting on Monday
(29/6/09). KNNCB. Celaka!!! Everyone putting shout-outs la, comments la abt "exam over" di. Well four (4) words, "FUCK You ALL BIATCH"!!!.. Chiow babes!!



(Above mention words are unintentional due to exam stress syndrome)

Bread week= exam week

Exams = bread for lunch everyday
6 slices of COLES bread; 3 slices of COLES processed cheese; 1 can of GREENSEAS TUNA (Assorted flavour) were my lunch everyday since last wednesday (10/6/09), thursday, friday, yesterday and today (Tuesday 16/6/09). Lucky the tuna comes in various flavours. E.g. Lemon & cracked pepper; lime & cracked pepper; sweet chilli (Favourite) ; spicy chilli (Favourite); garlic & herbs (Recommended); italian style; in brine; in springwater; in oil, etc.

First paper on 15/6/09 AFF2401 Commercial Banking & Finance went smoothly although located at Caulfield which really means nothing to me since i travel there 4 days a week for the whole semester. Thank you Kathy Avram, although u sux so much at teaching but you had compensated me with this kind gesture of relatively simple paper. Now, next paper 17/6/09 AFF2851 Accounting Information System & Financial Modelling. I really cant find many people taking this paper for this semester, only a hanfull which are Kok Leong (Caulfield campus), Adrian Kok, Jia Chen, Mae Eve (all three from Berwick campus) & Esther Ng (Malaysian campus). Sad lah this subject. ZZ alright chiao!

What I see is what you see, yet nothing is done.

£80 million man: Ronaldo off to Madrid

VS

13-year-old Liyakot Ali works in a silver cooking pot factory in Old Dhaka. The children work 10 hour days in hazardous conditions, for a weekly wage of 200 taka (3 USD). Dhaka. Bangladesh. June 2008


You be the judge. Not putting any hatred to Christiano Ronaldo. In fact he has nothing to do with this issue. What difference do you see within the former picture and latter picture? I see mankinds' cruel perception of human value. Christiano Ronaldo would not be what he is if not for the sole appreciation attention of his skills. We put value to his skills but not to the child's labour work. Would a silver cooking pot or footballer's skill put us in a better state? Money is what you think is worth, or might just be a piece of paper. Things are wrong in this world yet we sit in silence because everyone is afraid of change. We put too much value on things which shows no material value at all. A corporate figure sitting in the office earns more than a labourer in the factory, but who is using more energy to work? Labourer or corporate manager? Our failures is our own doing. We are failures in valuing the world.

Good lecturer vs Useless lecturers

Good lecturer: Ian BEAMAN for Financial Modelling

Useless lecturers:
1)Andrzej CEGLOWSKI for Accounting Information System
2)Wen QU for first-half of Company Reporting
3)Jacqueline BIRT for second-half of Company Reporting
4)Berekat REDDA for Cost Information for Decision Making
5)Kathy AVRAM for Commercial Banking & Finance

My definition of useless is the inability to explain coherently regarding the presented slides/materials. Financial Modelling lecture is like the ultimate best lecturer relative to the others since he always summarises the materials in the most understandable context for students.

Kathy Avram only mumbles her own word.

Jacqueline Birt's accent irritates the hell out of me plus very long-winded until the presented material means nothing to me

Berekat Redda is no different compare to Yunus Ali back at Sunway Campus cause "English problem" as he can't conveys he's message in an understandable language though he really knows he's materials but it's the communication problem, moreover he's also very long-winded with he's lectures especially the all time famous "bla bla...therefore...bla bla...therefore..bla bla" which linked so much of info into a line, so how to digest all in one time?

Wen Qu demoralises me as well as the entire class with her first encounter with us by telling "some of you here might be taking this paper for the THIRD or FOURTH time already, hence proven it is a very hard paper..." and the final lecture with "Goodluck everyone, I HOPE I won't have to see you again next semester".

Andrzej Ceglowski's presentation of information is very unconventional because it is full of diagrams and minimal words. He's not that bad compare to the rest that falls under this category.

Exams are around the corner. My dates: 15(2.30pm), 17(2.30pm), 24(2.30pm) & 29(9.30am) June 2009. Semua 3(tiga) jam paper excluding 10 minutes reading time. Screewwweed!!! I'm in a shit hole now!

Laughable

Only Malaysia justice system can twist a total court order in opposite direction after one appeal is made. If there is error in the previous judgement, the past judge should be stripped of his title as judge for making the mistake. Correct me if I'm wrong, but we're handling a Constitutional court case. Quite sensitive though!

CROWN CASINO

Ladies and getlement, presenting Crown Casino on Central Melbourne.
Went with Kane, Jan, Chieh Ai, Jun, Zax, Aric and Ignatius. We played only Baccarat ,my budget was $AUS 15 and i loss all of it in two rounds. On the other hand Kane and Jan won $AUD 205 and $AUD 80, while Ignatius and Zax loss $AUD20 and $AUD 50. Officially entered and played in casion Crown before reaching 20. WAKAKAKAKA!!!!

Max Brenner at Melbourne Central

Some random night bar we simply pick to enter.

Gin and Tonic

Chocolate fondue with milk chocolate (left) & dark chocolate (right)

Chieh Ai's "Exploding chocolate shot" (Pic 1)

Chieh Ai's "Exploding chocolate shot" (Pic 2)

Kane; Gracia; Jun

Gracia's "Chocolate pizza"

Zax's "Chocolate frappe"

Jun's "Mexican spicy chocolate"drink

Kane's "Suckau chocolte drink"

Max Brenner at Melbourne Central station. Malaysia still havent got this franchise yet, Singapore got it so long ago...

Davyn; Zax

"Nasi goreng lamb"

The Bomb! Received from an email.

A POEM from UTAR FCI

I join Utar because its 'pien yi',
I also thought it will be a good uni,
but end i jalan jauh sampai nak mati,
because all the faculties telah dibahagi

....in UTAR everything is about money,
pay late then they phone tak henti henti
even worse the officers talk like your are seekor babi,
no manners no courtesy

...Admin is crazy,
you wanna find DSA they will ask you to go jalan from PA to PD
if you complain they will say dont be lazy,
remind again kena marah lagi...

If got class til malam nanti,
after 8 the air cond will mati,
when we complain heaty,
they say the building is empty,
meng meng still got security,
where got count as empty...
UTAR thought we are monkey,

payment also need to go different faculties,
from collecting receipt, filling in form to paying money,
From PC, PA, PC and need certified go PD ...
If your lazy please dont come to this uni,
coz UTAr bus service also need money,
they dont accept cash accept tickets what a pity,

70 cents if u want to beli....
people say come uni,
sure can tiao yu,
mana tau whole uni oso 'beh khi',
got leng lui also treat us like sui yu...

toilet in UTAR very geli,
if it dont stink then your very lucky,
but the floors are very watery,
if you complain to the aunty,
they also tak peduli,

because they will be very penat if they really wanna cuci,
coz UTAR boyz dunno how to aim 'n' pee,
so it is very smelly...driving in UTAR is a liability,
Every time you park its very risky,

no parking lot for student in the uni,
jaya one got but its not free,
if double park then put call me message but berhati-hati,
or else saman Rm300 lagi

...food in every faculties also 'bu pien yi',
they will call out numbers with mic like pertandingan menyanyi,
want cheaper and niser food must go mamak kat tepi,
1 thing bad its hot and dirty ...

UTAR got alot of library,small with insufficient facility,
going in also need to show ID,
people go in to walk and talk kat sana sini,

so students there are very noisy,
if your smart you know dont come in to study...
UTAR computer lab very mini,
Pen drive masuk lubang sure got baby,

pregnant with all the trojan, worm and cookies,
besides that the server very laggy,
in PA the lab is like CC,
student LAN games with any games terkini ...

UTAR staff dunno get how much for their salary,
if they have problem they will ask you tunggu sini,
change people also cannot solve it then they ask tunggu lagi,
then change people again also cant solve then very soli...

Chinese in UTAR is majority,
Dont know how to speak chinese then they will say you 'lan si',
good students always carry a electronic dictionary
so they will learn better for their study...

Dr Ling say UTAR is good so study disini,
but what is happening we also dont have berita terkini,
coz the moving to kampar is very lousy,
thats why all the good lecturers also wanna lari,

no one wanna go there as its a town like 3rd world country,
no KFC no MCD,
1 thing they have is MYFC,
trust me for that place is not counted as lousy...
assignment for GD banyak sampai mati,

rushing assignment setiap hari,
no need sleep macam zombie,
some more class will be 8 pagi,
so macam mana bangun ni,

end up kena barred lagi...
Utar is not very lousy,
if you like to 'tham siu pin yi'

after you come in you will terpendam dalam hati,
coz UTAR my choice is the tagline of this uni...
Before come in kena sedar diri,
Got money please go oversea,

study abroad not like me,
if got choice cabut lari,
or end up like me always memaki.....

A Poem of INTI

At first I love INTI
But INTI loves my money

I ask money from daddy
But daddy asks mummy
Mummy goes to INTI
And find out why INTI's so greedy
The lift always mati

And the guards look like monkey
That's why I started to hate INTI
INTI don't love me
What for I love INTI
All they need is money

Nothing but money, money and money
The lecturers teach like bugs bunny
No wonder they're so lousy
And their faces look so funny
Like Talos the mummy

Futhermore, more more money flows to INTI
But they never plant more trees
All because they want to save money
Make all students feel hot to mati
First I entered INTI I got no kaki
Later I found someone likes to play tai tee
Then I started don't want to study
Here we can find a lot of kaki judi

That's why we must blame INTI
Since I entered INTI I cant see any leng lui lili sexy
Even the lecturers are more pretty
I always want to date them for tea
But I always kejar they always lari
Dr. Lim from SOLLA always lan si

People said his pucuk already mati
Even Viagra also tak boleh jadi
That's why loh people say he is 'cc'
He likes to tell jokes to everybody
But his joke never funny

Sometimes people thinks that his crazy
Dr. Lim so pity
INTI's toilets really smelly
No water no api
Even you haven't pee

You want to lari
Always complain they also say soli soli
Tan yew sing always said his INTI got quality
Instead everyone knows they are lousy

INTI motive just to earn more money
So that they can pay lecturers salary
And INTI share in KLSE can naik lagi
Waterfish like us always press by INTI

Just to tipu more more money
That is all the story about INTI
Which loves money
But after all I still come to INTI
To contribute money

(u r not in INTI?
u r very lucky
coz INTI cant bluff ur money
just cabut n jangan kembali~!!)

Student of INTI
noway to lari
already jadi SuiYee (waterfish)
plz tell everybody jangan kena tipu lagi

A POEM FOR UCSI (written by ccy)

UCSI is used to called Uk-Si,(Oh-Si)
I join Uk-Si because its near to my territory ,
Its used to be a good uni,
Filled with peace and harmony,

Until here come all the blacky.
When talk about the blacky,
They come not to study,
But find chinese for fucki,

Saying “Ni hao Ma”(how r u) to leng lui,
You will fell so geli.
The blacky at Uk-Si,
They are so smelly,
Every time go class I feel like mati,

Especially when they sit beside me.
Uk-Si blacky hidung are so tinggi,
Always drive car like crazy,
Walk in the middle of road like babi,
At night drink beer sampai nak mati,

Then shout at condo like nobody.
A Uk-Si gal rape by blacky,
Uk-Si cover it with money,
The gal suffer for life, so pity,

The blacky get away with Uk-Si money.
Uk-Si is all about money, money and money,
Price increase like crazy,
Obtain status as uni,
But facility like sekolah anak babi.
Uk-Si café expensive like crazy,
One sandwich for 3 something,
WOW!! It is so costly,

But the food never be tasty.
Uk-Si proud new campus for engineering,
Please don’t be so happy,
Because it is a cage for blacky,
And hard to find a pretty chicky,
Seeing Uk-Si black chicky,
Swimming at pool with bikini,
My eye’s sakit sampai nak mati.

Uk-Si only got one library,
Two campus need to share one library,
Make student run here and there like monkey,
The book always gone when exam is nearly,
If want a book please go rampas like aunty.
Uk-Si new computer lab is so nicely,

Filled with Core 2 Duo from HP,
But later all the mouse kena curi,
It is all done by the blacky,
So becareful when u bring notebook or lappy,
Because? You know la the “BLACKY”

Uk-Si classroom sometimes tak cukup kerusi,
Hv to come very early only got place to sit,
Sometimes classes for Fac. of Management and I T,
Hv to come super early just to rampas kerusi.

If no kerusi, lecturer pretend cannot see,
Then hv to carry chairs from other classes sampai nak mati...
Uk-Si com lab is just like UTAR,
Pen drive masuk lubang sure got baby,
Pregnant with all the trojan, worm and cookies,
Because the anti-virus are so lousy.

Uk-Si parking is so limit,
Student parking is cost two ringgit,
Yet still need climb up to the hill like crazy,
Uk-Si Staff parking is FOC,
But still got reserve by the security.

Uk-Si fees is so costly,
Yet, student do event still need ask others for money,
People say Uk-Si so rich why still for money,
So, where goes all our money,
I believe Peter Ng sudah masuk pocket sendiri.

Uk-Si always use advertisment to wrap nicely,
But inside is always empty,
So, never believe the advertisment of Uk-Si,
Because it is actually wrap with your money.

Uk-Si Prom night is so hot recently,
It is host by Stephanie,
But Student Council is insufficient money,
So Uk-Si ask student to make money,
Selling ticket at 85 ringgit,
But why were student paid to watch blacky,
Smelling cigarette and alcoholic by iran & blacky,
Thus, it is not so healty.
And lastly,
Never Come to Uk-Si!!!

Assignment Review

2,200 long Commercial Banking & Finance assignment essay. That should shed some light into some major causing factors of the Global Financial Crisis that happend recently. Mortgage Securitisation (biggest issue) should be worth your time reading. Would be glad if someone would shoot some piercing comments on my work. Open criticism is widely accepted. It's 30% of my final paper. XD XD XD.

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Introduction
Commercial BankOne (CBO), a small Australian retail bank equipped with a credit rating of BBB+/A2 from Standard and Poor, has been planning to switch their model back to the conventional “originate and hold” model which requires balance sheet funding.

Banks objectives in terms of liability management
Liability management is broadly defined as a process to diversify bank liabilities in a balance sheet (Gup, Avram, Beal, Lambert & Kolari, 2007). The liability management function must be quickly harness to attract additional sources of funds (Wilson, 1988).

Banks have an objective to carefully select the right proportion of bank liabilities without jeopardising shareholder value. To achieve that, three criteria that are needed to be accounted for are risk, cost and impact on shareholder value of each financial instrument (Gup et al., 2007).

Sources of bank liabilities
Hunt and Terry (2008) defines deposits as funds placed in accounts with Authorised Deposit-taking institution (ADI) while Gup et al. (2007) defines non-deposit sources as funds related to money market liabilities used to satisfy short-term liquidity demand.

Deposit funding
Deposit funds are further categorised into core and purchased deposits. Core deposits consist of current deposits with or without interest and fixed-term deposits, while purchased deposit such as certificate of deposits are promissory notes issued by the banks to satisfy the need for liquid cash in large sum for a period of 14 to 270 days and are tradable instruments in the money market. Certificate of deposit holders are granted interest payment plus the face value at maturity date (Gup et al., 2007); Hunt & Terry, 2008).

Core deposits
Core deposits are considered stable because these funds are usually from household, corporation and government surplus units (Gup et al., 2007). Customers usually replenish money in their account through continuous inflow of income, thus they provide long-term funding (Hunt & Terry, 2008). Benefits of depositing funds in ADIs from the perspective of depositors are due to its capacity to accept small and large value of funds, liquidity to make payments as funds can be withdrawn anytime, payment of interest depending on the amount and types of account and its low risk status (Hunt & Terry, 2008), therefore banks should capitalise on these as means to attract more depositors.

Purchased deposits (Certificates of deposits)
Purchased deposits on the other hand are more risky because they are sought from the money market through attractive interest rates (Gup et al., 2007). Hence, any fluctuations of rates downwards might lose the favour of depositors, whom are willing to invest in other attractive banks, thus making the risk of banks losing out money in large sums.

In the past, bank’s liability section of the balance sheet hold majority of deposit funds as it was the only financial source easily available that were cheap and low risk (Gup et al., 2007). However, globalisation, deregulation and enhancement of new technology had intensified competition for funds as every bank wants a fair share of the market (Wilson, 1988). Increasing complexity of the financial market and financial services demand had generated the availability of other types of financial instruments that could be tap by CBO to diversify its source of funds (Gup et al., 2007).

Non-deposit funding
Major and established banks have greater exposure and opportunity in the financial markets due to their credit ratings and well-known profile (Hogan, Avram, Brown, Degabrielle, Ralston, Skully, Hempel, Simonson & Sathye, 2004). Non-deposit funds consist of bill acceptances, repurchase agreements, corporate bonds, notes and other long-term borrowings.

Bill acceptances
These are promises of a bank to repay a commercial bill to investors if the borrowers default on their payments. It is also known as bank accepted bills (BABs) because 90% of the bills are accepted by the banks. The role of the bank is to enhance the creditworthiness of these bills prior to it being traded in the financial market. The accepting bank will be paid an acceptance fee by the bill drawer. Thus the bank acts as intermediaries between the surplus and deficit units (Hunt & Terry, 2008). The bank and borrower will enter into a bill receivable agreement that will be secured through the borrower’s asset to ensure the payment of the bill upon maturity (Hunt & Terry, 2008). Hence bill acceptances appears on both sides of the banks’ balance sheet (Gup et al., 2007).

Bonds, notes and other long-term borrowings
These are securities with interest that matures normally more than a year These instruments are second in priority should the bank be liquidated (Gup et al., 2007).

Statistical data
All graphs are based on banking statistics for three years starting from 2006 to 2008.

The graph above presents the trend of percentage of core deposits against the total resident liabilities spread over 3 years. It shows a descending trend for both major and other domestic banks.

The graph above presents the trend of percentage of purchased deposits (certificate of deposits) against the total resident liabilities spread over 3 years. It shows an ascending trend for both major and other domestic banks.

The graph above presents the trend of percentage of bill acceptances against the total resident liabilities spread over 3 years. The major banks experience a bigger jump during the year 2007 compared to other domestic banks.

The graph above presents the trend of percentage of repurchase agreements against the total resident liabilities spread over 3 years. It shows a descending trend for both major and other domestic banks. Major banks suffered a decrease in the year 2008 due to the reduction in money market rates announce by RBA to stavilise the Australian economy during the global financial crisis.

The graph above presents the trend of percentage of bonds, notes & long-term borrowings against the total resident liabilities spread over 3 years. It shows a descending trend for both major and other domestic banks.

The graph above presents the trend of percentage of intra-group deposits against the total resident liabilities spread over 3 years. Major banks experience a reduction while other domestic banks a rise.

The graph above presents the trend of percentage of other borrowings against the total resident liabilities spread over 3 years. Major banks experienced a rise while other domestic banks a reduction.

The graph above presents the trend of percentage of other borrowings against the total resident liabilities spread over 3 years. Both banks experienced a rise during the year 2007, but other domestic banks begins to experience a reduction during 2008.

The large percentage increase in the amount of mortgage securitisation in major banks and other domestic banks were due to the rise in favour of securitisation within the banking industry. Securitisation activities increased significantly by major banks because of their benefit of having a develop status in the financial markets.

The amount of bill acceptances, core deposits, intra-group deposits, provisions, bonds, notes and long-term borrowings had been decreased throughout the 3 years for major banks. While bill acceptances, core deposits, other borrowings, provisions, bonds, notes and long-term borrowings had been decreasing in amount for other domestic banks. Only the amount for loan capital and hybrid securities for major banks sees an increase, while funds due to financial institutions, intra-group deposits and certificates of deposits for other domestic banks experienced an increase.

An obvious reason is due to the financial crisis in the year 2008. However the catalyst for the crisis was the United States of America’s subprime mortgage crisis which had started in the year 2007. The drop in major banks in terms of core deposits is slightly less severe than other domestic banks due to their creditworthiness as the major banks of Australia. Moreover the Australian government had issued a nationwide guaranteed on all retail deposit held within AIDs provided certain requirements are met (Swan, 2008). The fall in core deposits is compensated by the rise in purchased deposits. Banks need funding to make funding available for others; hence it was time to tap on the money market for quick cash liquidity considering interest rates were falling thus cheaper funds are available, however other money market instruments seems not to be in high demand. It might be due to the overwhelming volatile market condition since the strike of the global financial crisis. With the crisis predicted to be coming to an end, the proportion of money market instruments in the bank balance sheet might see a rise again in the foreseeable future.

Mortgage securitisation
Securitisation is a process of transforming a pool of illiquid individual mortgage loans into tradeable securities which may be guaranteed, overcollateralised to increase its marketability, underwritten or organised by a bank or loan originator and then sells it to investors as asset-backed securities (Gup et al., 2007; Bailey, Davies & Smith, 2009; Lucia, 2003; Rosen, 2007). The process begins with the loan originators offering mortgage loans to homeowners. Instead of keeping the mortgages in the balance sheet as assets, they sell it to third parties or securitisation purpose vehicle (SPV) which consist of government agency (e.g. Ginnie Mae), government sponsored entities (e.g. Freddie Mac) and other private sector financial institution (e.g. Wells Fargo). These SPVs finance their purchases of loans through issuing securities (e.g. mortgage-backed securities- MBS). The return to securities holders are matched by the principal and interest collection from mortgage borrowers with the principal and interest payment respectively. The MBS are prearranged so that collection from mortgage repayment is adequate to pay interest and principal to bondholders (Gup et al., 2007; Bailey, Davies & Smith, 2009; Lucia, 2003; Rosen, 2007). Although the loan had been sold, loan originator retained their rights of administrating the collection of loan repayments, issuing statements and monitoring each account (Lucia, 2003). The securitisation process could end up in multiple folds when pools of MBS are collected and further securitised, thus calling them collateralised debt obligation (CDO) (Rosen, 2007).

Securitisation has become banks ultimate tool in liquidity management in recent years (Lucia, 2003). Securitisation provides banks with the capability to provide funds to deficit units at the same time allows it to reinforce its liquidity management by freeing up tied-up cash (Lucia, 2003; Hunt & Terry, 2008) that could be used prolifically on other investments which could earn a higher return or diversification of funding sources while maintaining a positive affiliation with the borrowers (Bailey et al., 2009).

The sale of mortgage loans to a trust is considered a “true sales”, whereby the asset cannot be returned to the bank’s balance sheet. This eliminates the credit risk associated when mortgagees defaults the loans. However the lost will materialise if the bank guarantees the repayment to the trust vehicle. (Bailey et al., 2009)

The problem with securitisation is due to the quality of loans being made. Loan originators just originate loans without weighing the financial backgrounds of borrowers because they would be sold anyway. Subprime borrowers on the other hand are not literate in the aspect of the loans and consequences of foreclosures and defaults. The code of conduct for securitisation was not adhered by the financial institutions. Mortgage-backed securities were having high ratios of subprime mortgages and not the supposed balance ratio of prime, subprime and Alt-A mortgages, therefore causing large investors loosing the value because they were not aware of the ratios. Thus ‘predatory lending’ was in action (Jaffee et al., 2009, pp 141-142).

To counter the problem, MBS should be standardised as it would be easier to value them thus promotes liquidity and reduction of predatory lending. Secondly, banks should educate mortgage borrowers about the mortgage offered. Allow ‘renegotiation and reorganisation’ with mortgage borrowers in the event of foreclosures or defaults (Jaffee et al., 2009, pp 141-142).

If these steps are undertaken, Commercial BankOne would still need more information and action from the market to justify participation in the securitisation market. The comparison between securitisation funding or retail deposit funding must be look upon since the new steps being undertaken might change the perspective that securitisation is still a cheaper source of funds.

Deposit and wholesale funding guarantee
The Australian government had taken steps to guarantee qualified deposits held within Australian owned banks, foreign subsidiary banks branches of foreign banks (some limitations), credit unions and building societies and wholesale debt securities issued on 12th October 2008 in response to the escalating global financial crisis (Swan, 2008; Hunt & Terry, 2008; Goodman, 2009). Only ADIs are provided with such benefits because they are regulated by Australian Prudential Regulation Authority (APRA) (Goodman, 2009) with the objective to preserve stability within the financial system in Australia by building trust in ADIs capacity to access funding (deposits) and to ensure they are competing on the same level with their foreign competitors. There are two groups that will receive the guarantees, firstly, deposits of AUD$ 1 million and below will automatically be guaranteed by the government for free under the Financial System Legislation Amendment Act 2008, Banking Act 1959 and Banking Amendment Regulation 2008. The second group consist of deposits of more than AUD$ 1 million and selected wholesale funding liabilities which would be guaranteed upon approval of the application by RBA and payment of the required fee (Swan, 2008).

ADI deposits up to AUD$ 1 million
The maximum of AUD$ 1 million applies to one depositor per institution (Goodman, 2009). Therefore, account holders of multiple banks receive guarantees up to AUD$ 1 million each. Deposits held in non-Australian banks are not automatically guaranteed but they could seek the benefit through an application to the RBA and by paying a fee. The requirement that must be fulfilled is that those funds are owned by Australians (Swan, 2008).

ADI deposits over AUD$ 1 million
These funds will be guaranteed upon approval by the RBA and after payment of the required flat rate fee depending on its credit ratings (Smith, 2008). Credit rating of AAA to AA- to be 70 basis points, A+ to A- at 100 basis points and BB+ and below ay 150 basis points. An Eligibility Certificate would be granted by the government if all requirements are met. (Swan, 2008; “Latest Pieces of Guarantee”, 2008).

Wholesale funding liabilities
The requirement of application and fee structure is similar to ADI deposits over AUD$ 1 million. Only short-term wholesale funding liabilities such as senior unsecured debt instruments that will mature within 15 months and falls under the definition of ‘not complex’, bank bills, certificates of deposits, transferable deposits, debentures and commercial papers can be guaranteed. Under non-Australian banks branches, maturities up to 31 December 2009 and further scrutinise by RBA only will be covered. On top of it, only bond, note and debentures of maturities between 15 to 60 months and ‘not complex’ are eligible for guarantee (Swan, 2008).

Conclusion
The exact proportion of funding sources is difficult to be defined since the global financial crisis is still looming around. However the upmost safest mix of funds in significant proportion would be core deposits, since it attributes the lowest risk among them all and a well mix of others as well.

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Consolidation of Financial Reports

Company reporting moving into week 9, second week of 'Consolidation' in reference to AASB 127 Consolidated and Separate Financial Statements. The hardest topic (consisting 5 chapters) to be spread over 4 weeks consecutively .

Week 8 (01/05/2009): The Consolidation Method
Week 9 (08/05/2009): Consolidation : Intra-group transaction
Week 10 (15/05/2009: Consolidation: Minority interest
Week 11 (22/05/2009): Consolidation: Indirect ownership interest


SHIT!!!! Shitty times!! Double dose of LIPTON Intense Extra Stong Black Tea.

JAKPOT $$$

My commercial banking tutor failed to secure a promised extension date line for our assignment, therefore to compensate that he sent us a totally fitted guideline to do the assignment. The official due date is 1st May 2009 which is this Friday. I'd already completed 70% of the assignment a week ago and now with the guideline provided, its full swing ahead. wohooooo!!!!

$$$ JACKPOT MAN$$$!!!!!

JaCkPoT!!!!

JackPOT!!!!

jAcKpOt!!!

JACKpot!!!!

On another thing, the weather here is damn freezing. Whole day raining. I think the weather is below 10 degress or highest around 12 degrees. Caulfield also so damn cold. Hate the wind so much!

Another thing, AFF2491 Company Reporting (a.k.a. Killer Unit with 30% failing rate EVERY semester) former lecturer, Wen Qu is back. She pronounce depreciation as deepSHITatian. No joke, thats what she said during lecture. LOL!!

I love kangaroo meat, it taste sweet or may be cause it was marinated m-kay.

24th April 2009

Had kangaroo meat for the third time. This time was roast kangaroo together with Davyn Mather cause we share to pay the meat price. As usual my neighbour Debbie Dong, starts calling me "kangaroo eater" AGAIN, not that i'm not m-kay, lol. She's cruel man, more cruel then me eating it, especially the descriptive blood coming out from the uncook meat m-kay. I think she has some prejudice about eating kangaroo m-kay. Alah they are good for the eater and aslo good for the environment, more healthy than beef and lamb too m-kay. Haha. It's real funny to see her, Veenah and Zoe talk about it when I'm eating kangaroo meat. Walauh can see weird expression man.lol. M-kay!

Mr. Mackey from South park : Drugs is bad, m-kay. Don't take drugs, m-kay.

Bar fridge and 2 days homecook meals.

21st April 2009

New bar fridge arrived. YES!!!

Capacity: 130 litres

Cost: AUD$ 253 (x 2.5=RM632)

(Costs=Heart pain, but must sacrifice. I cooked alot so need to store my veggies and meats)

No more struggling to put stuff in the communal kitchen. The communal fridge was ALWAYS packed. Relief...! Now can buy ice-cream, bottles of beer (Most probably not), Soft drinks to mix with Cointreau or others. Woohoo, unstoppable.

Meal for the day: Cheese on pork chop with salads (carrots; tomatoes, green peppers, onions and chopped garlic)

Ingredients: Pork quarters; quarter clove of garlic (chopped); half a green pepper (sliced); half a onion (chopped); one stick of carrot (chopped); -{black peppers, Italian spices, salt}- to taste; 1 slice of cheese; drizzle of olive oil, vegetable oil for frying and barbecue sauce to marinade the pork quarters.

Taste: Not bad, can consider of cooking again.

20th April 2009

Meal of the day: Bihun in beef stock soup
Ingredients: Bihun; one cube of beef stock; one and a half cup of water; 1 stalk of bak choy; strips of cabbage, Malaysian prawn sambal chili and diced beef.
Taste: Awfully disgusting, don't ever try cooking that. EVER!!

Eh this food thing all i main-main cook only, don't really follow and cook then complain taste bad. Everything depends on individuality taste buds.

Happy birthday Friend!

Just thinking...,

Before SAM, i hardly knew anyone who was born in month of October except Marshal Soo and Tahdiah. Both one day before(18th) and after(20th) me. During SAM, 5-6 people's birthday in the same class falls under October AND being the typical class, each of them has a cake and celebration between us. So 5-6 cakes in a month, which averages out around more than a cake per week for that particular month. Moving on to Monash first year, more surfaces up. Now in my second year, another group of people born in the month of October I came to know. And most of them falls closely to mine as well. There is EVEN a friend of mine who was born on the same date as me from the same hospital as me. I might had met her in the nursery room. Who knows. The world is small right!.

Anyway wishing a good friend of mine a very Happy Birthday!!

Esther Ng Bee Peng

~*P/S The girl on the right*~

Cold Rock Ice-cream

Two (2) sachets of Lipton Black Tea, boosted up my senses. Collecting articles to begin with.
Unit: Commercial Banking & Finance
Topic: Deposits insurance in Australian Banks
Percentage complete: 0%



wakaka. not going for Boat Cruise.
Reasons:
(a) Too expensive ($AUD 60 per person)
(b) Too near assignment due date- no matter how early I start the assignment, I'll rush in the end. It always happens.
(c) Save money for the ultimate Howitt Hall Ball -i.e. Gaudy Night





Didn't do much lately. Just hang around the room and download movies and television series from DC++ (The programme that don't exist). Reason for such claim is because it's illegal to download using this way. Went to Pinewood with Kane Tan, Chieh Ai and Zax Teh to get some ice-cream from Cold Rock. The specialty of Cold Rock is that, there are unique steps to get a Cold Rock ice-cream:

(a) Select size of cup or cone
(b) Select flavour of ice-cream (2-3 choices depending on size of cup or cone)
(c) Select toppings (Mars, Sneakers, M&Ms, Skittles, etc)
(d) The worker will mix all of them on a flat cold rock. It's no ordinary mixing method.
(e) Mix ice-cream served.
.
.
.
(f) Pay money


DON'T forget need to pay money. It cost me $AUD 5.80 ($AUD 5 for the regular size cup and 80 cents for a 45g Sneakers bar)


The next time I go, I'll double up my toppings to include at least 2-3 toppings. "Just to see what I'll get" (Russel Peter, 2007). My flavours just now were Bubblegum, Ferrero Roche and Mudcake...something. The mixture didn't give me the tingling feeling. Maybe cause wrong combination of flavours. Pfftt bubblegum with two (2) chocolate flavours. What the heck! haha.

I'm cruel ain't I to show the ice-cream? Wakakakaka!!! Alright the pic was taken half way I was eating it.

Read something about Sovereign Wealth Funds (SWF) articles in Financial Times while searching for articles. Interesting it is-sounded like Yoda. Will write something about it when I'm free. Brief intro: SWF are funds obtain by issuing shares/ownership to international wealthy corporation or overseas government investment wings. (e.g. Government of Singapore Investment Corporation and China Investment Corporation).

Great Ocean Road April 11th 2009

10th April 2009, 9pm
Venue: Edmund's place, opposite Rusden.
Activities: Having fun with some games and shots of Cointreau (Other words means drinking session)
Host: Edmund Pun
People: Me, Khoa from Vietnam, Yi Wei, Ee Teng, Hong Zhao, Matthew, Jia Chen, Mae Eve & Brandon Chan.

I went home to Howitt Hall at 12am, 11th April 2009 cause the got to go Great Ocean Road on the 11th April itself. According to Edmund, they went back arnd 3am. So I went home, slept at 2am, woke up at 4am, prepare breakfast, walked to Richardson Hall, and waited for the rest at 6am. 2 hours of sleep but still energetic. LoL.

11th April 2009

Venue: Great Ocean Road

Time: 6am-11pm.

People: Me, Lloyd Chee, Aun Shiang, Wei Ning, Kirin, Sarah Kew, Ignatius Lau, Aric Ng, David Koay &Pauh Seng Wah.

Woke up at 4am, meet them at Richardson Hall at 6am. Then introduced ourselves to Aun Shiang because she'll be fetching us there. Yes she has a car. And we get to know a new friend. So she make two (2) trips to Clayton Train Station. Me, Lloyd Chee, David Koay, Pauh Seng Wah, and Kirin took the first train and in the end somehow we met the rest in the same train again on the way to Melbourne Central Station. Weird I know. Hang around the Melbourne City waiting for the bus. We're following a tour to the Great Ocean Road.

The sign board even tells you the time it takes from here to the nearest toilet (i.e. 2 minutes)

Melbourne Tram.

Fucking Ignatius hand. Focus the picture nice already, he swayed his hand in randomly. Wtf.

Check it out! Melbourne got teach Wing Chun Kung Fu man. Ip Man, haha.

On the way in the bus, travelling along the Great Ocean Road.

Below pictures are along the coast while we're travelling in the bus. Waves were pretty strong.

Bus made a side stop, to catch a glimpse of koala bear. Nothing facinating. Top picture: one is sitting on top of the tree- left side. Look carefully.

This one was sleeping on a short tree. So short that we can even touch it. It was sleeping so we didn't dare to touch it, later it get wild.