Guarantees finished

The long suffering taxpayer sees a little bit less risk now that the Crown Deposit Guarantee scheme has finished:

Taxpayers have paid out more than $1.9 billion, with the lion’s share going to South Canterbury Finance investors.

Nine finance houses failed under the Crown guarantee. The final cost to taxpayers will be less than the total paid to depositors covered by the scheme, but that depends on how much is recovered from the firms that triggered the guarantee.

The original deposit guarantee was introduced in late 2008 at the height of the global financial crisis, when the world’s banking systems froze up. The government brought in the guarantee as an emergency measure to maintain confidence in the New Zealand banking system.

The original scheme covered deposits of $133b in 72 banks and finance groups. The government ended up on the hook for more than $1.8b, to more than 38,000 depositors in the original scheme.

While South Canterbury was the biggest collapse, the original scheme also bailed out depositors in a handful of failed finance companies, including Allied Nationwide, Mascot Finance and Vision Securities.

That scheme expired in October 2010 and was replaced with a much smaller, extended deposit guarantee, covering seven institutions and $1.9b.

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.