Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Got should tell public the banks could steal from them

Government should tell the public the banks could steal from them

March 3, 2013

“The Government should come clean and tell the public they are authorising the banks to steal money from their customers if a bank fails.

Deirdre Kent, a spokesperson for the New Economics Party, said they were waiting for the Minister of Finance to reply to a letter asking if he planned legislation to authorise banks to freeze part of their customers accounts in the event of a bank failure and use it to bail out the bank. “This practice is being called the deceptively bland name of Open Bank Resolution (OBR) and is being characterised as preferable to taxpayer bailout or a bank failure. We want neither customer bailout nor taxpayer bailout. We want the Government to investigate ways to make banks stable in the first place so there is no risk of a run on the bank. The way they are structured at the moment is that not everyone can come for their money at the same time.“

Ms Kent said the Reserve Bank has told them that 'The Bank continues to review the legislative framework that applies to OBR and will seek legislative amendment if the review suggests this is desirable,’ which presumably means they hope the current legislation will be good enough and they don’t have to alert the public that a portion of their bank accounts might be stolen from them.

“There are now five minor political parties and two organisations joining the list of groups supporting a petition for a Parliamentary Enquiry into the best ways to make banks stable, yet we still have no idea if there is going to be legislation authorising customer bailouts of banks.“

She said that the Minister of Finance said on February 27th that the Reserve Bank will invite submissions on OBR soon.

“We can’t tell whether the current law is adequate to let unsecured creditors like ordinary bank customers take more of the risk than overseas pension funds and overseas banks who were secured bank creditors. It is not fair on ordinary bank customers,” she said. “The bank took the risk and its shareholders should take the brunt of any failure”.

Ms Kent said the petition was supported by the New Economics Party, Positive Money New Zealand, Democrats for Social Credit, the Awareness Party, the Living Economies Educational Trust, the Mana Party and the Maori Party.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other…

Reportedly, it was the breakdown of the relationship between the Pakistan Taliban and the Pakistan military – which for the first time, began bombing Taliban enclaves in the Tribal Federated Areas earlier this year – that led to this revenge attack on the school, which is attended by the children of the military. More>>

 

Parliament Adjourns:

Police: Phillip Smith Investigation Passport Charge

A 25 year-old man will appear in the Whanganui District Court today charged with the Passports Act offence of False Representations. The charges were laid on December 9 by the Auckland-based Phillip Smith investigation... More>>

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Maori Party: Tribunal Report Confirms Iwi Ownership Of Lake Waikaremoana

“We are pleased for the claimants that eight years after the hearing began on Lake Waikaremoana they have some closure,” says Māori Party Co-leader Te Ururoa Flavell. “Most importantly, the report confirms freshwater is a taonga and identifies the ownership rights of Tūhoe, Ngāti Ruapani, Ngāti Kahungunu, and Ngāi Tamaterangi to the lake bed.” More>>

ALSO:

Climate Performance Report - Not Achieved: NZ Government Part Of Global Climate Problem

The New Zealand Government’s position on climate change is part of the global problem that we need to overcome if we are to avoid catastrophic climate change, the Green Party said. More>>

ALSO:

NSW Police Statement: Three Dead Following Martin Place Siege

About 2.10am (Tuesday 16 December), a confrontation occurred between police and a man who had taken a number of people hostage inside a café on Martin Place. Shots were fired during the confrontation. As a result, the 50-year-old man was pronounced dead after being taken to hospital. Another man, aged 34, and a woman, aged 38, were pronounced dead after being taken to hospital. More>>

ALSO:

Gordon Campbell: On The Sydney Siege (And DHB Budget Cuts)
Whenever the authorities bring a siege situation to an end, there will be criticism if – as has happened in Sydney – any hostages are seriously hurt, or killed... In the Sydney Morning Herald this morning, columnist Peter Hartcher raises a different point – that the initial public response had been noticeably different to the agitated reactions of politicians and the media. More>>

ALSO:

Gordon Campbell: On Income Inequality, And Yo Ho Ho Christmas Songs

As 2014 grinds to a close, we probably didn’t need one more reminder of this government’s ability to stare reality in the face and declare black to be a very fine shade of white... Yet on Wednesday, there was Finance Minister Bill English trying to tell RNZ that the OECD was (a) wrong (b) using old data and (c) somehow anti-growth and in any case (d) New Zealand allegedly already had a strongly re-distributive tax system... More>>

Werewolf: Public Health - The Silent Crisis

Gordon Campbell: New Zealand’s public health system has been in crisis for so long that its failings – and deteriorating performance vis a vis other developed countries – now tend to be treated as its normal mode of being. More>>

ALSO:

Parliament Today: House Adjourns For Summer

Parliament has risen for the summer break with the Adjournment Motion agreed just after 5pm on Wednesday. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news