Hanover's FAI Finance applying for government guarantee too
11th Dec 08, 9:24am
Hanover Finance Chairman Greg Muir confirmed at Tuesday's vote meeting that the group's FAI Finance division, which is still operating but not raising money, has applied for a government guarantee. It will be an interesting test of the new regime, given FAI Finance may not have breached its trust deed, but its parent Hanover has well and truly breached its deeds. Treasuy will no doubt work hard to quarantine FAI from the sort of pressured intercompany lending that afflicted North South Finance days before its parent Dominion Finance went bust. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.