Cunliffe referred to the Securities Commission

The Stock Exchange has referred David Cunliffe to the Securities Commission over his comments about Telecoms dividend policy that saw further value wiped off of Telecoms share price.

[quote]The NZX referral was made on the basis of complaints from market participants that the Minister's reported comments may have resulted in trading in Telecom's shares when the information was not available to the whole market.[/quote]

He is in a world of hurt over this one. John Key points out exactly how much trouble he is in.

[quote]His comments to the Bloomberg newswire yesterday have wiped $200 million off Telecom's value. This follows the $2.6 billion in market value the company lost from the unbundling announcement.

Not only that, but because Mr Cunliffe talked to a newswire that feeds to wholesale investors – not mum and dad investors – he has overseen the savaging of one group of shareholders over another.

During the afternoon yesterday after his comments, there were 75 million trades in Telecom stock – a massive increase on normal volumes.

Mr Cunliffe's comments show a complete lack of understanding of the rules governing capital markets.[/quote]

Cunliffe must go.


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