Therein lies the rub. Tell people who originally invested in the preference shares for the full $1.00 and they're now worth 14 cents that Uncle Alan will look after them and see them right !!Quote:
I think that's probably correct.
For those of us who buy debt securities on market, there is no expectation of a fixed value for the nominal values we hold, but for someone 'putting cash into a fund' or even those who buy debt securities when they are issued, it does seem likely that they view things differently.
Alan.
Fact is Lachie McLeod under AH's directorship, off his own authority, (he was solely able to approve loans over $1m, (source 2009 annual report), wrote some truly appalling loans in the latter part of the decade, and continuing on even though it was abundently clear that the world had changed forever with the on-set of the GFC in August 2007. Lachie sold the company down the river trying to meet lending targets and improve his personal bonus and all the while under Uncle Alan "legendary" directorship....
After all they had a wall of money coming in as soon as the Govt guarantee started so they had to do something "extremly intelligent" with it right ?