Turnbull was at the centre of Australia’s biggest corporate failure

Turnbull would become entangled in the collapse of HIH, Australia’s then-second largest insurance company.

In December 2000, on the back of bulging debts and marginal solvency, HIH would become the largest corporate collapse in the country’s history, with liquidators estimating losses of up to $5.3 billion.

A Royal Commission was established to probe the collapse, and a portion of the inquisition was dedicated to Turnbull, who was the Goldman Sachs head and primary advisor to FAI, an insurance company that HIH took over for a sum of around $300 million in 1998.

It was later revealed that FAI’s assets were grossly misstated, and Turnbull was accused of concealing from the FAI board of directors that he was working with FAI CEO Rodney Adler to take the company private.

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