NAB, ANZ both have fallen heavily due to increase in provisions - the maginitude is getting bigger and bigger - some banks basically just write off 100% of their books on any exposure on US Sub-Prime products - this is not a new mvoe at all, with a large number of European and US banks already doing so.

On M&A front - howver, interesting movements start to happen - Count has suddenly increased their shareholding in rival Mortgage Choice, a mortgage provider now facing a somewhat very challenging time because they are unable to provide competitive loan products anymore.

Rams Home Loan faced the same issue at one stage - which is still yet to be resolved. But with both Mortgage Choice and Rams, they have very significant database of customers, we are talking about millions of customers using their products.

I believe the overall mortgage industry will be consolidated, in fact, including the financial planning industry - some of the larger financial planners will definitely become larger and larger. I think this would also apply to the overall funds management industry including REIT (but will come at later stage because of the credit crunch problem).

With that view in mind, if I am going to build a M&A Fund today, I will be focusing in some of the listed managed fund managers - and there is plenty of them.