Visit Institutional Economics

The Future Fund as Lender of Last Resort? Your Taxes at Work

Posted on June 12, 2008

Sources being quoted by Reuters suggest that Australian banks are raising term funding from the Future Fund. ANZ has supposedly raised about A$500 million this way. A Commonwealth Bank spokesman is quoted as saying that it looked at all funding options and the Future Fund is clearly emerging as a future source of funding. From a capital raising and portfolio management perspective, this lending would make good commercial sense and is fairly low risk. However, it does raise some interesting issues as to whether the Future Fund may come to be seen as a de facto lender of last resort...

Original article link


taxes