David Seymour sides with banks after ‘disappointing’ advice from Regulation Ministry
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- Regulation Minister David Seymour asked for advice on the Reserve Bank’s capital requirements for banks earlier this year.
- The advice was released to the Herald under the Official Information Act.
- The Reserve Bank is currently reviewing the rules.
Regulation Minister David Seymour sided with New Zealand’s big banks over the advice of officials from his own Ministry for Regulation on the issue of how the contentious bank capital rules should be calculated and compared.
The rules, which were unveiled by the Reserve Bank in 2019 and are being phased in, require trading banks to hold considerably more capital for the lending that they do.
This makes the banks far safer and less likely to collapse. However, all sides acknowledge it comes with a cost.
The rules make lending more expensive, which means that banks do less of it, which ultimately means the economy does not grow as large as quickly as it would do had the rules been less onerous.
Whether that cost is worth the benefit of stability has caused one of the biggest and most fraught economic scraps in history – and it could have been the reason why Reserve Bank Governor Adrian Orr abruptly resigned in March.
TDB told you that the reason Adrian Orr quit was because the intense cuts to the next budget and because Nicola Willis wanted to lower the capital requirements for our banks, it’s good the mainstream media are now acknowledging that.
Free Market Wellness Influencer David Seymour is sad sad because the Aussie Banks are forced to protect our money from their greed!
Why the fuck we are thinking of doing this at a time when there is real threat to the global economy is beyond stupid.
Orr was hated by the 4 Big Australian Banks because he was the one demanding they hold high enough capital levels to look after New Zealanders because Orr knew in his heart of hearts that if a serious economic shock hit Australia or NZ that the 4 Big Aussie Banks would immediately cut our throat to protect their own.
No Kiwi can be stupid enough to not expect the 4 Big Aussie Banks who have robbed us blind to cut our throats if they needed to.
That was what Orr was protecting us from, he has been forced out and now we wait to see if the 4 Big Aussie Banks get their stooge.
Under this Government it is impossible to see that they won’t.
Here’s the risk.
NZ Initiative Acolyte Nicola Willis and Free Market Wellness Influencer David Seymour will decide the Banks can have way less capital just as Trump primes the economy for global collapse, Orr’s worst fears will be realised and as Trump’s global realignment hits us, the Aussie Banks will gut us and run
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I think you are100% wrong. The Aussie banks won’t ‘gut us and run’
They will gut us, but then they will squeeze us in case they missed a bit and then they will sit, on their rocks, and wait for our children.
Correct Peter and the same can be said of Willis and Seymours budget. We will get gutted and ad Hipkins said Willis might as well give tickets to Australia for our public servants as she drives them off. Let’s not forget she was quick to borrow for the tax cuts and landlord rebates that weren’t necessary yet her government are telling our best and brightest doctor’s to take a pay cut.
All that is typically national .
‘The tax cuts and landlord rebates that weren’t necessary”
Necessary! – By God sir! You are obviously not a landlord or a ‘sorted’, wealthy bastard.
Damn it all – need those tax-cuts to keep paying all m’ex-wives and bastard children.
All that is typically national .
If an aussie bank fails Seymour will bail it out and your great grand children will be paying tax to pay off the govt bail out which will be borrowed from? An unfailed aussie bank.
Here we go round the raspberry bush, early in the morning still half asleep as always, round and round. And there is no way out like in ya regular maze, this one’s circular and we are human Phar Laps. Wanna bet? Heigh ho.
Bank capital adequacy ratios have a long sad history of being reduced and reduced and then when the proverbial inevitably hits the fan, the titans of finance get bailed out.
I think Mister Orr made some mistakes, but at the end of the day I think he understood why the banks need regulating.
Bailout after failure after bailout after failure after bailout. . . inject equity next time!
Saymore does not impress and I thought of him when reading this – excerpt.
https://medium.com/a-different-perspective/jung-on-hitler-and-the-archetype-of-the-madman-6cfc1afaa450
The psychologist Carl Jung was a Swiss national, served in World War I, and kept a close eye on Germany when Hitler and the Third Reich were spawned. In 1936 Jung acknowledges in an article the growing German menace, comparing Hitler to the Norse God Wotan who represented irrationality and apocalyptic events. Wotan was the Nordic god of war and had long been a cult figure among Germanic people. Wotan was known as a great magician and could intervene magically in battle with his paralyzing power.
This god was also a shapeshifter, taking on guises and other personas as he saw fit.
Wotan was an actor in dark and dangerous theater….
Further on – hard analysis that can apply to Kiwis.
“All these pathological features — complete lack of insight into one’s own character, auto-erotic self-admiration, denigration and terrorization of one’s fellow man (how contemptuously Hitler spoke of his own people!), projection of the shadow, lying, falsification of reality, determination to impress by fair means or foul, bluffing and double-crossing — all these were united in the man who was diagnosed clinically as an hysteric, and whom a strange fate chose to be the political, moral, and religious spokesman of Germany for twelve years. Is this pure chance?”
[This can be applied to some of our politicians like Seymour , and thinking wider to Tusk and other heavy-footed crushers.]
Jung suggests a more accurate diagnosis of Hitler’s condition “would be ‘pseudologia phantastica’ which is characterized by a peculiar talent for believing one’s own lies.” For a short time, such people can meet with remarkable success, and are therefore dangerous. Jung writes that Hitler’s theatrical, hysterical gestures struck most foreigners as ridiculous. He adds a personal observation:
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