Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Credit Ratings Agency Blackmails Christchurch City Council

Credit Ratings Agency Blackmails Christchurch City Council on Asset Sales

This story slipped by without comment from anyone in the Christmas rush. Better late than never.

On December 8th the Press reported that: “Ratings agency Standard & Poor’s has ruled out downgrading Christchurch City Council for the time being…But the agency warned that the ratings could be lowered if earthquake repair costs grow or the Council backs away from an asset sales plan” (emphasis added).

That’s more than a threat and more than a promise. It’s a very clear example of transnational corporate blackmail.

The bigger question is, though: why would anyone give a rat’s arse about what these gangsters say about anything?

Remember the Global Financial Crisis of just a few years ago, where US speculative financial capitalism brought the world’s economic system to its knees, including in New Zealand?

Who underwrote, signed off and guaranteed the financial crimes that caused the crisis?

The transnational ratings agencies, with Standard and Poor’s front and centre.

Refresh your memory and go and see “The Big Short”, which is in cinemas now. It is a most illuminating explanation of what and who caused the GFC.

There is a memorable scene where one of the leading players (marginally less unlovely than the others; there are no heroes in this true film) goes to Standard and Poor’s Wall Street office to seek an explanation of its role.

Q: “So why do you keep Triple AAA rating this shit?”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

A: “You know how it works. If we don’t do it they’ll go down the road to Moody’s (another ratings agency) and they’ll do it”.

Q: “So it’s ratings for fees?”

A: “Yes”.

Come to think of it – why haven’t we seen Standard & Poor’s executives in a perp walk, paraded in handcuffs through the streets by FBI agents? Oh, I forgot – they’re “too big to fail”. That sort of thing would “undermine market confidence”.

At a bare minimum they should be made to change their name to the more accurate Standards Are Poor.

And the message to them from the people of Christchurch is: shut up, butt out and think yourself lucky that you’re not sharing the cell with Bernie Madoff.

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.