tag:blogger.com,1999:blog-2830084253401570472.post8970051254019898037..comments2024-03-28T09:22:36.967+13:00Comments on Offsetting Behaviour: Propping up the finance companies [updated]Eric Cramptonhttp://www.blogger.com/profile/15831696523324469713noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2830084253401570472.post-30646879490084014412010-09-01T23:21:37.748+12:002010-09-01T23:21:37.748+12:00Some year-old numbers here - $228 million as of Ju...Some year-old numbers <a href="http://www.interest.co.nz/news/despite-fees-collected-scfs-failure-and-treasurys-new-policy-throws-crown-guarantee-deep-losses" rel="nofollow">here</a> - $228 million as of June 2009. Apparently this year's figures come out mid-October. But most of this comes from banks, not finance companies. Even if premiums were close to the losses, it would be as a big subsidy from banks to finance companies.<br /><br />The $400 figure is nonsense as the firm still does have assets that are worth something and will eventually be sold off.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-23584836208163622282010-09-01T23:00:52.553+12:002010-09-01T23:00:52.553+12:00Do you know how much the government collected in p...Do you know how much the government collected in premia for the deposit guarantee scheme? I've heard talk of up to $900m, but can't find the exact figure anywhere.<br /><br />I'm just wondering, because there's a lot of talk of "NZers paying $400 apiece for the bailout" (NZHerald et al.), where, in fact, they might not pay anything at all if the bailout costs less than the premia collected from banks etc. by the government.Jameshttps://www.blogger.com/profile/07995395711510222406noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-30343599165539784072010-08-31T20:53:05.684+12:002010-08-31T20:53:05.684+12:00@Miguel: Nice catch, will update. Thanks!
@Hefe:...@Miguel: Nice catch, will update. Thanks!<br /><br />@Hefe: You should have put it in a finance company, apparently.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-79086730155952949352010-08-31T18:44:17.857+12:002010-08-31T18:44:17.857+12:00Man, I'm a sucker. I think all of the 2009 int...Man, I'm a sucker. I think all of the 2009 interest on our house deposit (earning a lousy 3% in the bank) just got wiped out by our proportion of the $1.7B taxpayer liability. Nice. Pretty sure all the cost cutting in Health and Education just got wiped out also. Oh well, as long as those 'Mom & Pop' investors don't have to eat their risk, I guess that's all that matters.Hefevicenoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-37806094676665675052010-08-31T17:24:41.556+12:002010-08-31T17:24:41.556+12:00One point that you won't remember since it was...One point that you won't remember since it was snuck out under the radar: Treasury and the Reserve Bank were in talks with Cullen beforehand, and they recommended that if a deposit guarantee were introduced it should have certain features - one of them being that finance companies should be included. See this link:<br /><br />www.treasury.govt.nz/publications/informationreleases/guarantee/pdfs/t2008-2000.pdfMiguel Sancheznoreply@blogger.com