The National Government is considering a law change that will retroactively affect ANZ and ASB, letting them off the hook for hundreds of millions of dollars in a class action lawsuit
Thanks for this, Ryan. Would you consider adding into your time line the resignation as PM of John Key, his appointment to the board of ANZ bank, and his resignation as chair.
Reading this it’s my impression that both National-led and Labour-led governments are guilty of corporate cronyism here. Nothing about this looks good. Ultimately it’s the corporate moguls who should bear the cost. Unfortunately they will, no doubt, pass all costs on to their customers.
There is so much more to this…if you understand that Banks create money when they lend and that this is a special privilege of our monetary system, then when a Bank lends money to a Finance Company (tiered by their lending risks) then they should also be held accountable for the lending practices of those Finance Companies. That would be interesting.
Banks are not intermediaries they create money when they lend. Since the adoption of neoclassical monetary management in the 1980s they have been free to make choices about how much new money is created and where it is allocated. This while Govts have had the cloak of austerity thrown upon them. This has lead to increased private debt which no one talks about, rampant speculation (GFC, derivatives, property generally) - and for the public infrastructure deficits.
So it’s really important that we don’t just leave the choice of new money creation up to Bankers who do it for short term profit.
To me, given their role in money creation they also have a special role in the Finance industry. The industry has captured the politicians and the regulators - with consumer outcomes being poor. The Banks should be directly accountable for the poor lending practices of the Finance companies they lend to.
I wondered why the Credit Contracts and Consumer Finance Amendment Regulations 2024 bill was one of National's first priorities. Now we know.
I think you have found the Key to this game!
At this point, need some variety from the same theme of the grifters and deceit.
Thanks for this, Ryan. Would you consider adding into your time line the resignation as PM of John Key, his appointment to the board of ANZ bank, and his resignation as chair.
Added
Reading this it’s my impression that both National-led and Labour-led governments are guilty of corporate cronyism here. Nothing about this looks good. Ultimately it’s the corporate moguls who should bear the cost. Unfortunately they will, no doubt, pass all costs on to their customers.
It’s so disappointing
Your timeline suggests that the Labour government was also on the side of the poor old banks as opposed to those greedy customers - shame on them
There is so much more to this…if you understand that Banks create money when they lend and that this is a special privilege of our monetary system, then when a Bank lends money to a Finance Company (tiered by their lending risks) then they should also be held accountable for the lending practices of those Finance Companies. That would be interesting.
Can you explain more or point me to some reading?
https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy
Banks are not intermediaries they create money when they lend. Since the adoption of neoclassical monetary management in the 1980s they have been free to make choices about how much new money is created and where it is allocated. This while Govts have had the cloak of austerity thrown upon them. This has lead to increased private debt which no one talks about, rampant speculation (GFC, derivatives, property generally) - and for the public infrastructure deficits.
https://share.icloud.com/photos/0b3GgQY92MyS50d9LnzLK2U_w
https://youtu.be/hmMSmKO1U-8?si=6GMNf-5RmvFrMRcf
So it’s really important that we don’t just leave the choice of new money creation up to Bankers who do it for short term profit.
To me, given their role in money creation they also have a special role in the Finance industry. The industry has captured the politicians and the regulators - with consumer outcomes being poor. The Banks should be directly accountable for the poor lending practices of the Finance companies they lend to.
Many thanks for this. I’m not well versed in finance but working to bone up my understanding.
Thank you for your mahi!
Thanks for reading!
Why has the class action taken so long?
It was only granted standing in 2022 and these things just take a while to make their way through the courts