section 1043a of the corporations act, page-5

Chain of events:

1. Purchase NAB 07/01/08 60,100 at approx $36.40 = $2.188M
2. Purchase NAB 14/03/08 42,927 at approx $27.50 = 1.290M(averaging down)
3. Purchase NAB 27/06/08 20,000 at approx $26.70 = $534K(averaging down again)

Total shares purchased = 123,027 for $4M.

One of two things happened here either:

1. Fahour knew that NAB were going to do a Capital Raising (he was the one to announce it to market) at $20 so sold 130,000 shares to crystalise the loss before the price fell again for $3.2M

Or

2. Used a margin Lending facility to LVR 80% or an internal loan from NAB for 80% to purchase the shares in the first place and used 20% cash down.

Either way, it is highly highly likely Fahour would have known that NAB would have been doing a Capital Raising at $20.

The more damming outcome of this is an Executive Director SPECULATING and losing his own money. Even when he knew that the Financial markets overseas were in turmoil and would affect NAB directly or indirectly.

Wonder what he's doing to the shareholders money?