Tag Archives: Open Bank Resolution

A Goldman Sachs-organised, ‘risk-free’ loan of $200 mill Kiwi Savers’ funds is now LOST after the bank collapses – still trust your government?

Seriously do you still trust your government which really is a corporation, to swan around the planet investing your hard earned cash in foreign banks? A ‘risk-free’ loan TO a bank that’s subsequently crashed … really? Check out our previous articles on Kiwi Saver. This is not the first time things have run amok. Kiwis funds have disappeared from their accounts folks by the thousands. Not a few cents …. thousands of dollars. It’s fast coming time the only safe place to put your hard earned cash is in your sock or under your mattress … sadly. The banks already have the right to hair cut your savings should they go bust (Open Bank Resolution – google it) and it appears they haven’t circulated that information to well because few seem to know about it. Your representatives tax themselves at 2.8% while middle income workers are taxed 28%. See whose nests they are feathering … it isn’t yours.
Time to wake up Kiwis.   EnvirowatchRangitikei

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NZ Super Fund’s $200m loss

Matt Nippert   (Herald Business)
(Matt Nippert is a business investigations reporter)

Almost $200 million of taxpayer money invested through the Kiwi Superannuation Fund has been lost after a Portuguese bank where the money was invested, supposedly as a “risk free” loan, collapsed.

The Super Fund, set up with public money to cover partly the retirement costs of baby boomers, has revealed it had been caught up in last year’s collapse of Banco Espirito Santo (BES) and a US$150m (NZ$198m) investment made in July had been completely wiped out.

The investment was a contribution to a Goldman Sachs-organised loan to the Portuguese bank, but only weeks after the money was injected it imploded, with president and founder Ricardo Salgado arrested as part of a criminal investigation into tax evasion.

After disclosing billions of Euros in losses, and facing a run on funds by depositors, the bank collapsed in a heap and was broken up in August.

Goldman Sachs, described by Rolling Stone as “the great vampire squid” for their sharp business practices in the run-up to the global financial crisis, today said it would “pursue all appropriate legal remedies without delay” in an attempt to recover the loans to BES.

READ MORE: http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11404653&ref=NZH_FBpage

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Did you know your money in a term deposit in a NZ bank is not guaranteed by your Government?

Remember people, this is your government (really a corporation) that just lost $200 million of your hard earned Kiwisaver funds to a collapsed Portuguese ‘fail safe’ bank! Do you really still trust them!  EnvirowatchRangitikei

By Bernard Hickey: interest.co.nz

Bernard Hickey says the quiet removal of the guarantee for Kiwibank savers should remind all savers about the lack of a deposit guarantee and prompt regulators and the industry to run a public education campaign about NZ”s lack of a deposit guarantee.

Did you know that your money in a term deposit in a bank is not guaranteed by the Government?

piggy-bank-967181_1280Those in the know are aware that there is no Government guarantee, but it turns out most regular people, and certainly most term depositors, either still think there’s a guarantee, or think there’s always has been one.

New Zealand briefly had a government guarantee for retail bank deposits from October 2008 to December 2011. It was introduced at the worst point in the Global Financial Crisis to stop a run of deposits across the Tasman to the banks’ parents in Australia, where the Kevin Rudd Government offered a guarantee for depositors there.

It was quietly dropped once global markets had settled down and was replaced by a system called ‘Open Bank Resolution’. This means there is no Government guarantee and if a bank was to fail, the Reserve Bank would shut it down and manage a capital restructure overnight so that it could re-open the next day. One way a bank’s capital could be restructured by the Reserve Bank is through a ‘hair-cut’ for depositors. Essentially, the Reserve Bank would slice a certain percentage – say 10% – off the value of term deposits to allow the bank to re-open with enough capital to survive.

READ MORE:

http://www.interest.co.nz/opinion/80951/bernard-hickey-says-quiet-removal-guarantee-kiwibank-savers-should-remind-all-savers