Wounded NAB refunds bonds after shock CDO writedown
National Australia Bank ditched its chief executive and refunded some bond investors this week after announcing an A$830m "worst-case scenario" provision for CDO losses, as the impact of the global credit crunch on Australian banks becomes painfully clear.
The bank caught the Australian financial markets by surprise when it chopped its valuation of the CDOs by 80% in a single stroke on Friday (July 25) after previously only making a small adjustment of A$181m.
It has set aside the A$830m to cover its investments in 10 ABS
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