Originally Posted by
Logen Ninefingers
I think I'll sell off my PGC, for the following reasons:
1/ All these millionaires in Canterbury are a clique. PGC should be in competition with SCF, not propping them up. This should be about business, not about 'friends'. $75 million is a big chunk of money...too big in my book.
2/ Torchlight has been given a mandate to invest in 'distressed companies'. I'm not comfortable with that. The whole group could be crippled by another round of big impaired loans no matter how strongly the other parts of the business perform.
3/ MARAC is a tainted brand....it's not suitable to be turned into a bank, it's associated with bad & written-off loans. The banking industry is competetive in NZ, and we already have a local component in TSB and Kiwi Bank. I don't see that MARAC has much going for it.
4/ The recent saga's of the 'hidden loan' and the 'runaway chief risk officer' is another big blow to the credibility of MARAC.