Don't punt on a rescue by the NAB!!

Just a thought for those tempted to buy AMP on the off chance of a bid by NAB (or any other bank atm).

Neither the AMP, NAB or anyone else has any idea where the bottom in global equities lies in the current market but it could well be WAAAYYY below where we are today.

Because of the nature of its capital guarenteed products in its UK subsidiary the AMP is quite literally being eaten alive as the FTSE and other global equities markets fall. Each time its prudentially required minimum capital ratios are breached in the UK operation it will be required to fork out more funds.

Why would anyone voluntarily choose to take on responsibility for that potentially bottomless black hole right now.

Cicutto at NAB is desperately trying to rebuild market confidence after incinerating billions of investors funds in Homeside - but at least he had some sort of excuse there. The problems were not immediately obvious and were a failure of the due diligence process.

In the case of AMP he won't even be able to claim he was blind drunk and smoking in bed when the house burnt down. The AMP's bed is already well and truly on fire right now and everyone in the market knows it.

Anyone else who may be looking to buy knows it too.

AMP is only a buy if equities markets have reached the bottom (if you know when this will be exactly could you give me a call) OR AMP announces they are shutting the UK operations which will represent a market disaster for AMP anyway in the UK and probably huge associated write offs.

This as always is only mho.

Any other views ?