Bung: The interest has gone from this thread now that we'll never know what the 1st bank was really basing its decision on. The original "put the blame on the RB" wasn't supported by the RB. It seems odd that going up the chain didn't change anything if it was a mistake at a lower level.
The Mike Pero site mentions that some banks still require a certain % of the deposit to come from existing savings older than 3 months when a family gift is involved. Maybe that should be irrelevant when the deposit is well above minimum.
The answer must be to explain the money as family returning money you lent them years ago...!