Like the big banks, FSA amongst other things are in the business...

Like the big banks, FSA amongst other things are in the business of lending money to home owners. Unlike the banks, instead of relying on deposits and capital raisings, when it comes to home lending, the majority of the lending is done using Westpac’s money. FSA is a bit like an agent; Westpac takes on the majority of the risk. Google the term non-recourse loan.

Ask yourself when was the last time FSA did a capital raising?

The car lending model is different and probably more risky. Keep in mind that the money is borrowed out at around 16% to punters like @vestro. FSA borrow the money from Westpac at around 6%, so there is a substantial lenders margin to be made. Look at the default rates, very low from what we are told.

FSA’s core business is insolvency management including managing debt agreements. The pie is getting bigger as more Australians find themselves in financial strife. I think @vestro was alluding to the bankruptcy business in his comment.

Trust me; Westpac would not be increasing its borrowings to FSA if it had any insolvency concerns.

The Easy Bill Pay product is going well. I have almost paid off my psychiatrist bill! I am then going to start saving for a tilt at a defamation case.