FED:AOFM chief faces Senate hearing=2

AAP General News (Australia)
12-16-2010
FED:AOFM chief faces Senate hearing=2

The AOFM has also weighed in to a political stoush between the federal government
and Aussie Home Loans founder and executive chairman John Symond.

Mr Symond told a Senate hearing on Tuesday the AOFM was embarrassed about having to
knock back an offer to buy residential mortgage-backed securities from the non-bank lender.

But, Mr Bath said the CBA's one-third share in Aussie meant it could not invest in
Aussie Home Loans and he contested Mr Symond's assertion the two parties had earlier agreed
to a transaction.

"There was a lot of water to go under the bridge before we actually committed taxpayer
money to this transaction," he said.

"It's a bit disingenuous to say he was ready to go with a $2 billion transaction and
we pulled the rug out from under it. We did not."

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KEYWORD: BANKING AOFM 2 CANBERRA

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