This article was published in our email for paying subscribers. See here for more details and how to subscribe.
1 Comments
ANZ group CEO Shayne Elliott talks of a 'rather a complex formula' for banks to balance the interests of borrowers, savers and shareholders
Such claimant nuances are hardly in contention in the New Zealand subsidiary:
Whilst there are differences between different classes of unsecured creditors, they all have the same legal claim on the bank. Each has freely invested in a private institution and has enjoyed a return on that investment whilst accepting the risks associated with the investment. Under the OBR, it is expected that all unsecured creditors would be treated equally with the same proportion of claims remaining frozen
for all depositors and creditors. Read more, page 9 (5 of 6)
Most savers are recipients of out of thin air bank credit in exchange for the sale of an asset to a bank indebted buyer or wages from a similarly encumbered employer - hardly investors.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.