90 at 9: Strategic, Bridgecorp Fiji worries; Trans-Tasman bank regulator

Alex Tarrant presents 90 at 9 in association with ASB with news this morning that the government has extended the deposit guarantee scheme but changed its terms and conditions. It will put a floor on entry into the extended scheme in October 2010 of a BB credit rating which could see smaller finance companies opt out of joining. Strategic Finance, currently in moratorium, has had pressure placed on its biggest loan on the 'Fiji Beach Resort & Spa' resort in Fiji, which was planned to be renamed the Fiji Hilton. The Auckland-based developer of the project said an extra NZ$14 million was needed to carry on work after it stopped about four weeks ago. Strategic's loan on the development was around NZ$75 million and it will not see any of it until the final stage of the development is completed. Staying in Fiji, the Momi resort, tied up with Bridgecorp Finance, failed to sell at auction, with negotiations apparently continuing post auction. Bridecorp investors had about NZ$106 mln sunk into the project. The highest bid at the auction was NZ$41 mln. Meanwhile, CBA head Ralph Norris has again raised talk of a common regulator of Australian and New Zealand banks. Barak Obama will nominate current Federal Reserve Chairman Ben Bernanke for a second four year term as head of the Fed, Reuters reported. The announcement was earlier than expected and still has to go through the Democrat-controlled Senate.