The Government’s announcement to protect people’s money in the bank is cold comfort to those who owe the banks mortgages.
The scandal of greed currently engulfing Hisco and the breaching of basic banking practises is secondary to the jaw dropping obesity of bank profits vacuumed out of NZ for our Australian Corporate Overlords who have this level of power because of their lack of competition oligarchy which allows them to price gouge New Zealanders.
Adrien Orr knows all to well that if the big Australian Banks (who have recently been outed in an enormous Australian inquiry into the industry’s culture and who were found to be acting like piranhas with the kind of lending ethics reserved for drug cartels) get hit, the first thing they will do without a care is strip their NZ rental franchises of everything to keep the Australian parent banks afloat.
If you think any of the big Australian Banks would look after us over them, you are day drinking and smoking meth.
By demanding the big Australian Banks hold enough cash for a looming economic shock, Orr is closing off an escape rout for the big Banks should the worst eventuate. They are responding with an enormous panic campaign warning NZ mortgage holders that they will ultimately pay for Orr’s meddling.
Grant Robertson’s promise however to make sure the Banking Oligarch’s perverse grip on predatory loans & price gouging fees will be more stable than ever is hardly cheery.
It’s not the banks screwing over those who have money with them that is the issue, it’s the banks screwing over Kiwis who borrow from them.
The Banks are maximising obscene profits because the big 4 dominate, the facade of competition is just that, a facade. Our under regulated banking sector is another perverse market failure just like the interconnected housing crisis is a market failure.
The time to upscale Kiwibank to be the Government’s bank client and creating state backed mortgages for first time home buyers as a counter weight to this domination by the Australian banks is now.
Re-invest NZs wealth into NZ, not offshore to a corrupt Australians banking industry.