NAB may sell toxic mortgages to US bailout fund

NAB may sell toxic mortgages to US bailout fund

National Australia Bank, which owns Bank of New Zealand, could recover some of the money it had written off the value of toxic US mortgage backed debt by selling some of it to the US Treasury's proprosed Trouble Asset Relief Programme (TARP), JB Were has speculated. Some version fo the TARP bailout fund is expected to pass Congress this weekend after US Treasury Secretary Henry Paulson relented on the issue of executive pay and the US government taking equity stakes. If NAB is able to structure its conduit assets through its US subsidiary, Great Western Bancorporation, it may be able to tender in the already written-down $1.2 billion portfolio of residential mortgage backed securities in the conduit, JBWere's James Freeman, Ben Koo and Elizabeth Rogers were reported as saying by AAP.

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