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90 seconds at 9am: Bridgecorp debacle revealed; Australian bubble warning; Expensive Greek bonds

90 seconds at 9am: Bridgecorp debacle revealed; Australian bubble warning; Expensive Greek bonds

Watch on our video page here click here to go to todays 90-at-Nine video report Watch on YouTube here Bernard Hickey details the key news overnight in 90 seconds at 9am in association with the BNZ, including news that details are emerging from the Bridgecorp court case of what was going wrong in the last few months before it collapsed. Jenny Keown from Stuff reports that Bridgecorp was supposed to collect on NZ$482 million of loans in the second half of 2006, but only managed NZ$95 mln. This meant the December 2006 prospectus was misleading, prosecutors said. Near the end, Bridgecorp was monitoring cashflow by the hour despite saying in its prospectus it had plenty of cash. Bridgecorp then borrowed NZ$8 mln from St Laurence at 23% and had to pay 30.5% on that after it defaulted. Then in February 2007 it started defaulting on payments and didn't tell its trustee. Meanwhile in Australia, the Governor of the Reserve Bank of Australia has warned investors about a property bubble and not to borrow too much because interest rates will rise. Markets are now picking Meanwhile Greece raised 5 billion euros overnight in its first bond issue since its IMF deal, but it had to pay more than 300 basis points over base and demand was weak.

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