Watch Jacinda shut the borders to the US now for 7 - 14 days, this is when it gets real for the likes of AIR - huge proportion of their international income.
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She and many in NZ will be trying to find a way not to shut the border on US - remember that American shxt don’t stink as far as they are concerned.
Never mind the fact that US has allowed the virus to run rampant over there - acknowledged by themselves with the state of emergency.
A President who had minimized the problem, blamed others for highlighting it and described it as a hoax, curtained surveillance and health resources so US is badly placed to handle the outbreak - all pointing to a disaster which per H1N1, US will export to the rest of the world and NZ will not be spared.
Lest I be accused of scaremongering, a few more details on this topic
The Open Bank Resolution system, or OBR for short, which Grant Roberston has assured NZers is coming, is not in place yet. The legislation is still in the consultation phase and policy details are being worked through. The 90% haircut figure I brought up was meant to refer to the amount of cash confiscated over and above a safe threshold of $50,000.
As an example if you had $100,000 in an account then $50,000 would be able to be accessed as normal and the other $50,000 would be first suspended and then be able to be drawn on by the bank at a rate of 90% on that incremental amount. So as a 'worst case' scenario' you might lose $45,000 of it. That means the potential maximum loss on your $100,000 would be $45,000 in total or 45% (not 90%).
Now I have an admission to make. That 90% figure I pulled out of my memory in relation to what happened in the 2012-2013 bank crisis in Cyprus. It turns out my memory wasn't perfectly accurate.
https://www.forbes.com/sites/timwors.../#6bf717086359
"Account holders in Laiki Bank, the country's second largest, stand to lose up to 80pc of their money as the lender is wound down and insured deposits transferred to Bank of Cyprus."
Other bank holders did not lose quite so much, although in Cyprus there seemed to be a minimal threshold to avoid confiscation (unlike what is proposed here) and the banks there did have some deposit insurance (our banks don't). In this case losing 80% of everything is actually worse than losing 90% of half what you have. But all of this assumes that there is some deposit insurance and , right now, in NZ there is none.
SNOOPY
Nevertheless, if you held 1 mill in the bank, some form of haircut could apply to 950k.
The Ausi banks milk us for all its worth, and the icing on the cake is no guarantee.meanwhle back in Aus they are guaranteeing 250k.
I believe here you can have multiple accounts at different banks but still a pia.
What would happen if you had a million held in 20 banks accounts with 50K in each? Is it based on bank account balance per account or total held by each person?
I doubt things will get quite this dire but I suppose one option might be to open a CBA account (easily done from NZ) and pop 250K in it as we're almost at parity so there'd always be the chance of a forex gain when bringing it back.
What happens is the banks take out high risk investments, often heavily leveraged instruments like options or futures and also have other wild horse investments all packaged up ready to write off... so that when it goes bad we the consumer pay through all the bailouts to banks or losing money like in the examples above... and when it goes good the banks just keep all the high risk returns all to themselves.....
So to start with you never really have a bank that really cares want to succeed anyway...its gona make the big money and its gona get bailed out... perfect business to be in really...
:cool:
.^sc
Do overseas customers have the same rights as Australians if the CBA failed?
This is quite interesting
https://pursuit.unimelb.edu.au/artic...oo-big-to-fail
Then you would get away 'haircut free'.
Based on each single bank account balance
Yes I think that would work too,Quote:
I doubt things will get quite this dire but I suppose one option might be to open a CBA account (easily done from NZ) and pop 250K in it as we're almost at parity so there'd always be the chance of a forex gain when bringing it back.
SNOOPY