CommBank is blaming Merrill, Merrill is blaming CommBank. One thing is certain; the bank's abortive $2 billion share placement, which fell apart on Tuesday night, was more redolent of a tinpot minerals explorer than a major bank.

The Commonwealth Bank was forced to can its $2 billion placement after an emergency board meeting at 7am today. UBS stepped quickly into the void and got the issue away late morning although the high drama over the canned placement dragged on through the day.

Institutional investors had jacked up on Tuesday night when they learned via the official CBA announcement at 7.15pm that the bank was admitting to a deteriorating loan book.

Merrill Lynch, the broker organising the placement, had already raised the $2 billion after a phone-around that began late morning. The money was in the bag but news of the bad loan position was still unknown.

Analysts subsequently downgraded CBA by 10% on the revelations.