Australia’s big banks to sign deals to manage the country’s $7.5 billion bailout
News Corp Australia is the first Australian company to announce a deal with an international investment bank to manage Australia’s $70 billion bailout of the financial sector, as part of the countrys second big bailout.
News Corp’s chief executive officer Greg Kyncl said he and his board would take a close look at the deal.
“I think it is very important that we are taking the time to evaluate this deal with the appropriate authorities and get it right, and then we will be able to announce it in the coming days,” Mr Kynck said.
The bank said it would work with the Federal Government and its regulator, the Australian Securities and Investments Commission, to “ensure that the transaction is appropriate for the circumstances of the Australian financial system”.
Mr Kyncld said the deal would be funded by the Government’s $50 billion Help to Buy program, which provides the funds for the first phase of the bailout.
“This is a very significant step forward in ensuring that our banks are in a position to meet their obligations,” he said.
“It is important that Australia’s banks are able to take full advantage of the benefits of the Help to Purchase program and other mechanisms that exist to help them weather the financial crisis.”
The deal with Citigroup, which is owned by Citigroup Inc, and other international investment banks was announced on Thursday.
News Group Newspapers Ltd 7/9/17 12:49:39The banks deal will give the banks a more secure and efficient way to manage their portfolios and to reduce risks, Mr Klenck said, as well as providing an additional layer of accountability to their shareholders.
“With the assistance of Citigroup and its partner, the National Association of Investment Advisers (NAIA), we have agreed to develop a strategy and a plan to enable them to manage our economy in a more efficient and efficient manner,” Mr Hargreaves said.
Mr Klencl said Citigroup would provide the bank with a strategic advisory role, which would be expanded to include overseeing the bank’s international business.
The banks will also retain their existing role as an independent third-party adviser.
News Corporation said it had secured more than $2 billion in financing from the Government, and was in talks with banks across the world.
Mr Hargresons statement comes as the Government moves to end a series of days of public criticism over the way it handled the $7 billion bailout.
The Government has been under fire for its handling of the crisis, with the Treasurer blaming banks for a wave of bad lending and a collapse in consumer confidence.