The six-month mortgage holiday and the $6000 in extra baggage... I received this email this week. It focused on the greed exhibited by the banks of our country: I'm reminded of the Tuesday club stories you did on banks last year. While everyone is focused on blaming govt with who wins/loses in … [Read more...]
The Economist magazine had a fascinating article on the future of new banking practices this week
It started with: TECHNOLOGICAL CHANGE is upending finance. Bitcoin has gone from being an obsession of anarchists to a $1trn asset class that many fund managers insist belongs in any balanced portfolio. Swarms of digital day-traders have become a force on Wall Street. PayPal has 392m users, a … [Read more...]
More thinking about banks from an international perspective:
It’s always interesting to see how the rest of the world is struggling with restarting their economies. We are not on our own and recently the Guardian considered the role of central banks and the function banks must play in the rebuild of our economies. In New Zealand our banks have a dreadful … [Read more...]
ANZ bank caught again by regulators:
Once again, the ANZ Bank has been dragged into Court by the Financial Markets Authority. Here’s what happened. ANZ first identified a duplicate policy issue around September 2017. The ineligible customers issue was identified around May 2018. ANZ did not disclose either issue to the FMA or Reserve … [Read more...]
About banking and the role of the NZ Reserve Bank
I received this article from Liz Griffiths, who was a bank manager at one stage in her life. Here it is: The best economic future for government spending in NZ is for the Reserve Bank, which is government owned, to issue credit to the government as required. I am not about to say anything … [Read more...]
Money lenders and Credit Rating Agencies
Societies having a problem with money lenders has been around for ever. Here is a painting which Rembrandt painted in 1635. It demonstrates Christ driving the money lenders from the Temple. It has always been one of my favourite parts of the bible. Greedy bastards playing on people’s … [Read more...]
As we enter into post-Covid 19 we must keep a close watch on the Banks:
My view on our banking sector has been enunciated clearly many times in this newsletter. However, this week in Newsroom an article appeared which said: Business people have sounded an alarm about the Government's Business Finance Guarantee Scheme, which they say is hitting the same roadblocks … [Read more...]
Continuing the review of Banks:
The Aussie banks, which trade in New Zealand, were found guilty of all sorts of dishonest activities in Australia at the Royal Commission set up to study them. With any small businesses, if the Directors had faced such serious charges they would be in court, and quite possibly imprisoned. No … [Read more...]
Let us continue looking at Banks:
I received an interesting response to the article on banks in the last email. This week I thought I would print Cam Preston ‘s thoughts on the banking system as a whole. It does summarise the system really well. I have been sent some a really useful series of articles on the bank’s behaviour … [Read more...]
It’s time to challenge the banks:
This week the Minister of Finance announced that the Banks had agreed to a 6-month holiday period for capital and interest payments. I thought back to the anger of people after the earthquakes, who took the holiday period for mortgage repayments finding that their mortgages were higher than what … [Read more...]