Subprime Repercussions Down Under

Australian Home Mortgage Franchisor Rams to be Acquired by Bank

SYDNEY, Australia (Blue MauMau) - All 53 franchisees of the publicly listed Rams home loans franchise will have one of Australia's major trading banks, Westpac, as their new franchisor in what appears to be a win/win deal. The franchise network will retain the brand and Westpac will increase its home loan business.

The purchase opportunity for Westpac resulted from Rams' inability to refinance A$6.17 billion in debt earlier this year in the wake of the subprime crisis.

Related readings:

• Sydney Morning Herald: Rams Throws In The Towel
• Sydney Morning Herald: Rams Smashed Despite Westpac Buy