History proves time and again the incontrovertible value of
hindsight. The view looking back has the singular advantage
of putting into perspective events and eventualities from
above the fray, and in the wake of their consequences.
Global markets remained subdued overnight after United States
President Barack Obama's address to the nation on stalemated
talks to drag the world's biggest economy back from the brink
of defaulting on debt repayments.
New Zealand's financial system is more resilient and
positioned to support economic growth, but still faces a
volatile and uncertain environment, Reserve Bank governor
Alan Bollard says.
The days of financial cowboys getting away with hundreds of
millions of dollars from investors in higher risk funds
because of lax regulatory and supervisory systems appear to
be reaching their end
Proposals for starting a listed New Zealand-owned, South
Island-based bank have been welcomed by Minister of Finance
Bill English, to fill the lending gap left by the exit of
finance companies during the past two years.
Preference shares in South Canterbury Finance look set to
test all-time lows - 22c last month - with the $1 shares
trading down 15% during the past two days at 23c each.
The new chief executive of beleaguered South Canterbury
Finance, Sandy Maier, is upbeat about saving the southern
lending giant. Business reporter Simon Hartley reviews
progress on the massive, and painful, restructuring of the
85-year-old company.
Troubled South Canterbury Finance has estimated it will raise
almost $600 million in the year ahead as part of its major
restructuring process, but has released details of more
loss-making adjustments.
South Canterbury Finance is expected to announce this week an
offer of longer term debentures to offset a looming more than
$1 billion "wall of maturities" due later this year.
