PRESS DIGEST-Australian General News - April 6

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy. THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

The Australian Securities and Investments Commission (ASIC) is investigating investment banks and fund managers over claims of insider trading related to major capital raisings. The recent surge in capital raisings, with an estimated A$28 billion raised by 20 companies over the last six months, has prompted ASIC to examine concerns that some companies are engaging in a process called "soft-sounding,' whereby an investment bank involved in a company's raising approaches potential shareholders prior to the placement to gauge the market appetite. Page 1.

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The Rudd government is to spend A$950 million on a jobs program aimed at supporting an expected increase in unemployment over the coming year. Prime Minister Kevin Rudd yesterday pledged a further A$150 million, on top of a previous commitment of A$800 million, to help combat an increase in the jobless rate. Mr Rudd has allocated A$300 million to help retrain newly retrenched workers and A$650 million for community employment projects. Page 4.

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There has been recent increase in the number of Australian corporate failures, according to figures released by the Australian Securities and Investments Commission. Figures for February show a 24 percent surge in the number of companies going insolvent and a 13 percent increase in firms going into administration. Colin Nicol, of Advisory firm McGrathNicol, warns of further rises this year, saying "there are a lot more companies in intensive care.' Page 3.

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Westpac Banking Corporation (WBC.AX) has pledged to extend its loan assistance program to help small-and-medium-sized Australian businesses affected by the economic downturn. Chief executive Gail Kelly yesterday announced that the bank and its subsidiary St George Bank would introduce "additional [loan] capacity and capability to support these customers. The pledge follows the Rudd government's joint-mortgage relief agreement with the Big Four banks aimed at supporting newly unemployed mortgage holders. Page 4.

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