I thought he had SCFHA's which aren't covered by the Guarantee.
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$1.6 billion with around 35,000 depositors. That's an average of $457,000 each. This isn't just Kiwi mum's and dad's is it!
Yeah but what about personal responsibility? What about your responsibility to other taxpayers? I don't give a stuff about the rules. Its a problem in this country that everybody wants a hand out and no one wants to take responsibility for their own actions. I'm furious.
JR, I accept that RDGS was a prudent move in the dark days of September/October 2008, but the treasury must have known about all the shambolic related party loans, why they extended SCF into the scheme earlier this year I don't know.
I don't think there is a general perception that individuals have any responsibility to other taxpayers. Our general culture would be to grab whatever is going wouldn't it? I mean that's why we have LAQC's, so that virtually everyone in NZ can get state handouts like working for families if they are of a mind to. I agree that it shouldn't happen, and I don't do that myself, but at the end of the day if you want to avoid underarm bowling you have to get the rules right.
Lizard, I understand the climate in which it was introduced for the main deposit banks with 'prudent' lending and that's fine. But SCF should not have had an extended guarantee. And you as a seasoned investor putting your money into SCF should have known there was a high risk of failure, but you have chosen to speculate because of the moral hazard the govt implied by keeping them in the scheme. As minimoke says it's 'immoral' I think its worse.
While we ponder the impact of a receivership - we were also told the Final YE accounts would be released today. Is there still an obligation for this to happen now receivers are called in - or does all the red ink in the accounts get buried never to see the light of day?
Yes its all buried as I suggested it would be. Assertions by Sandy that the company was basically breaking even for the quarter ended 31 March 2010, were, shall we say, extremly optimistic "at very best", at worst...well i'd better not say it I might be sued for slander.