I thought I’d check out the Retail Deposit Guarantee Scheme for myself, since it is being talked about, and after about 30 seconds investigation discovered on the Treasury website an all encompassing, “NBR” do what ever whatever he f*ck we want clause clear as a bell in black and white.
All those greedy South Island capital gains hunting farming trough pigs who borrowed to “invest” in South Canterbury Finance on the premise that “but, but, but, it was guaranteed” better hold onto their pants because they are about to get ripped away.
If I was a prudent Finance Minister I would be looking for the fine print about now, because it appears, prima facie, that there sure as hell is “inappropriate conduct” and “a material reduction” in net tangible assets.
This folks is what is commonly called a weasel clause. Unlike most weasel clauses though this could all have been avoided if SCF had been honest about its position all along, but that probably would have meant they wouldn’t have qualified and therefore would have fallen over much earlier.
Prudential managers insurance companies look for just this kind of thing when looking to dishonour claims, I should know, Fidelity Life did it to me. South Canterbury Finance would have zero chance of getting a cent out of Fidelity Life, I suggest the Finance Minister guards New Zealand taxpayers funds with a more zealous attitude, much like Fidelity Life guards its shareholder funds.
I’ll leave more detail analysis to all the financial gurus out there in profession repeating land to realise what this little blogger.