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| Thread ID: 94064 | 2008-10-12 18:44:00 | Guaranteeing finance companies? What on earth are they thinking! | somebody (208) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 711844 | 2008-10-12 18:44:00 | www.nzherald.co.nz The government is proposing that it will guarantee all deposits, including those in finance companies! With the amount of irresponsible behaviour by finance companies in recent years which has led to the recent collapses, this sort of guarantee offers no incentive for directors of those companies to be responsible. While I have no fundamental objection to guaranteeing deposits in mainstream, registered banks, extending it to finance companies and other irresponsible organisations is a bad move. |
somebody (208) | ||
| 711845 | 2008-10-12 19:08:00 | I agree, Registered banks only.....!!! My wife deals with the dead beats that get money from the finance houses!! | SolMiester (139) | ||
| 711846 | 2008-10-12 19:09:00 | I agree with the banks being guaranteed . Whereas I quite agree with you about Finance companies, I have to ask . . are there any left that haven't folded? :eek: Ken PS . . Solmeister, would that be from loan sharks rather from mainstream finance companies? They are a real problem :( |
kenj (9738) | ||
| 711847 | 2008-10-12 19:38:00 | With the amount of irresponsible behaviour by finance companies in recent years which has led to the recent collapses, this sort of guarantee offers no incentive for directors of those companies to be responsible. Even if you look at it from the perspective that every director is responsible, there is still a greater risk than putting your money in the bank. Why should the tax payer cover the losses of those who make poor investment decisions? | maccrazy (6741) | ||
| 711848 | 2008-10-12 21:03:00 | I agree with the banks being guaranteed . Whereas I quite agree with you about Finance companies, I have to ask . . are there any left that haven't folded? :eek: Ken PS . . Solmeister, would that be from loan sharks rather from mainstream finance companies? They are a real problem :( Card dealers who havent finance houses for loans, they dont care if the buyer can afford the loan or not, so many loans to beneficiaries . . . . . . . |
SolMiester (139) | ||
| 711849 | 2008-10-12 23:20:00 | . nzherald . co . nz/nz/news/article . cfm?c_id=1&objectid=10537163" target="_blank">www . nzherald . co . nz The government is proposing that it will guarantee all deposits, including those in finance companies! With the amount of irresponsible behaviour by finance companies in recent years which has led to the recent collapses, this sort of guarantee offers no incentive for directors of those companies to be responsible . While I have no fundamental objection to guaranteeing deposits in mainstream, registered banks, extending it to finance companies and other irresponsible organisations is a bad move . I think in the small print, they will have to be a certain quality and have an international investment grade credit rating . A lot of thes finance companies only failed, becuase here was essentially a 'run on their funds' as they matured, rather then bad management . Exactly the same thing has happened to banks overseas . Finance companies do have a place in NZ, as a lot of NZs development would never have occurred if finance companies didn't exist . I wonder if the protection applies to those that have just ceased accepting new deposits, such as Hanover, but are still trading . I know it doesn't apply to those in liquidation . |
robbyp (2751) | ||
| 711850 | 2008-10-12 23:28:00 | I think in the small print, they will have to be a certain quality and have an international investment grade credit rating . A lot of thes finance companies only failed, becuase here was essentially a 'run on their funds' as they matured, rather then bad management . Exactly the same thing has happened to banks overseas . Finance companies do have a place in NZ, as a lot of NZs development would never have occurred if finance companies didn't exist . I wonder if the protection applies to those that have just ceased accepting new deposits, such as Hanover, but are still trading . I know it doesn't apply to those in liquidation . This article: . nzherald . co . nz/nz/news/article . cfm?c_id=1&objectid=10537163" target="_blank">www . nzherald . co . nz expands a bit further on how it applies to finance companies . The likes of Hanover etc . are not covered . |
somebody (208) | ||
| 711851 | 2008-10-13 22:29:00 | From an article on Stuff: Mr English said managing the scheme in a way that did not encourage smaller finance companies to take additional risks or use it to try and get themselves out of trouble would be difficult . "We're interested in talking to the Reserve Bank about what policies are going to be applied and it's not that transparent now, but there is time to develop some transparency around how the Reserve Bank is going to determine the lending practices of the institutions . "Because now that the taxpayer is guaranteeing them . . . someone needs to make sure that the risks are appropriate . " - . stuff . co . nz/4726680a13 . html" target="_blank">www . stuff . co . nz |
maccrazy (6741) | ||
| 711852 | 2008-10-13 22:37:00 | they dont care if the buyer can afford the loan or not, so many loans to beneficiaries....... Beneficiaries again huh. In the paper here on Sunday was an article about this moron couple in Invercargill: www.stuff.co.nz "A Southland couple have been left with next to nothing except a debt that's costing 36 per cent penalty interest as they struggle to repay a loan company. The Croydon husband and wife have repaid the $43,538 they borrowed from Auckland-based Budget Loans Ltd two years ago, plus an extra $5200, but still owe almost $32,000. The couple initialled 12 clauses acknowledging they had been advised to seek independent legal advice, they understood their obligations and were aware that had "granted a very wide power of attorney in favour of the lender" . Budget Loans Ltd charges an annual interest rate of 19.95 per cent, which skyrockets to 36 per cent a year, compounded daily, if the debtor goes into financial default." People are just stupid. |
pctek (84) | ||
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