ftse falling... poor amp, page-49

re: ftse not live 3325 - but dead An interesting concept - the NAB taking a stake in the AMP under the terms you suggest Grant.

Question - wouldn't this in turn trigger a selloff in the NAB?

Right now, hat bank in its right mind would want to take a major equity exposure to the AMP? Especially given that even its own management have admitted they have no clear idea of what the future may hold. Indeed it could be surmised that they don't even really know what shape the business is in?

It wouldn't be far removed from the gamble that the NAB took when they launched the then hostile bid for GIO. This time however the risks are known but unquantifiable, the AMP has become to an extent a play on the FTSE and I am lead to believe that its retail business in Australia is having a less than satisfactory time (not unique to the AMP) explaining a third year of losses.

Surely this too must be leading to issues such as redemptions etc within the Australian business.

Would the NAB board neccesarily be acting in the best interests of its shareholders i effectively acting on behalf of the government to provide financing to the AMP?

I don't think so, but what would I know.