Liquidator sues government

The liquidator of failed HIH Insurance is suing the Commonwealth government for A$5.6bn (US$3.1bn) in the Supreme Court of Canberra. The claim is based on negligent failure of the Australian Prudential Regulatory Authority and its predecessor, the Insurance and Superannuation Commission, to prevent the HIH collapse despite many warnings. The argument includes regulatory failure in relation to FAI Insurance which was taken over by HIH late in 1998.