CBL Insurance IPO

[macduffy]

So far it feels like we learned nothing from the collapse of the finance companies.

I don't think the two situations bear much comparison, BP. There's a lot of difference between the property lending excesses of the finance companies and the risks underwritten by an insurance company, particularly one involved in such a specialised business as performance bonds and guarantees. The pricing and accounting for such instruments can't be compared to the valuation process involved in financing property developments.

Personally, I should have known better than to have a small flutter on this one.

[BlackPeter]

I don't think the two situations bear much comparison, BP. There's a lot of difference between the property lending excesses of the finance companies and the risks underwritten by an insurance company, particularly one involved in such a specialised business as performance bonds and guarantees. The pricing and accounting for such instruments can't be compared to the valuation process involved in financing property developments.

Personally, I should have known better than to have a small flutter on this one.

Absolutely - different skill sets on board and management level required. However - while the CBL disaster still needs to be investigated, I can see a number of quite obvious parallels:

• Boards with lack of (for the relevant business) relevant experience and skills;
• Boards which find it for one reason or another ok to ignore their disclosure requirements;
• Auditors confirming healthy balance sheets despite company being insolvent - i.e. at least some of our audit companies seem to be incompetent and not adding value;
• Market regulators responsible for overseeing governance either incompetent, not aware of their role or firmly sleeping at the helm.

Nothing changed. We (as country and system) don't seem to have learned the lessons from the GFC.

[Brain]

On the 5th of April 2017 which is a bit over 2 years ago Peter Harris and Alistair Hutchinson sold 5M and 5.4 M shares respectively and senior management sold another 9.6 M shares at $3.26.
This was to increase market Liquidity. A noble gesture indeed.

[BlackPeter]

Advert from Peter Harris with a lot of good questions in the weekend edition of the NZ Herald. I think - no matter how we see his contributions in this saga - his questions do deserve an answer.

RBNZ is clearly not coming out of this smelling like roses - and they well might have destroyed lots of clients and shareholder funds without being accountable to anybody.

Attachment 10651

[Lola]

Advert from Peter Harris with a lot of good questions in the weekend edition of the NZ Herald. I think - no matter how we see his contributions in this saga - his questions do deserve an answer.

RBNZ is clearly not coming out of this smelling like roses - and they well might have destroyed lots of clients and shareholder funds without being accountable to anybody.

Attachment 10651

Not the first time arms of government have destroyed businesses and those responsible are faceless clerks , and as you say accountable to no one. The kiwifruit/ MPI saga is a case in point. There are others in the pipeline right now. The fresh faced little Hipkins idea of chucking all the state servants wollies into one big convenient bucket wont achieve a thing. As for his current attempts to merge the poltitechnics under one roof....a crazy idea. Lets the good ones carry on, and those that have been useless, well close them down. Soviet style central government is on its way to a neighbourhood near you.

[Balance]

Advert from Peter Harris with a lot of good questions in the weekend edition of the NZ Herald. I think - no matter how we see his contributions in this saga - his questions do deserve an answer.

RBNZ is clearly not coming out of this smelling like roses - and they well might have destroyed lots of clients and shareholder funds without being accountable to anybody.

Attachment 10651

Being people of considerable means, Peter Harris & Alistair Hutchinson simply need to file for a judicial review and RBNZ would be required to answer those 'questions'.

There is only one question which these two characters need to answer via their PR firm and we can all then evaluate if there is substance to their 'we are clean' campaign :

Q - Why did they transfer $55m against RBNZ's regulatory order? What other transfers (and how much) were they getting ready to make if the RBNZ did not act proactively to stop them from doing so?

Until they answer that question, they have ZERO credibility.

[whatsup]

On the 5th of April 2017 which is a bit over 2 years ago Peter Harris and Alistair Hutchinson sold 5M and 5.4 M shares respectively and senior management sold another 9.6 M shares at $3.26.
This was to increase market Liquidity. A noble gesture indeed.

THANK YOU Brian.

[BlackPeter]

Being people of considerable means, Peter Harris & Alistair Hutchinson simply need to file for a judicial review and RBNZ would be required to answer those 'questions'.

There is only one question which these two characters need to answer via their PR firm and we can all then evaluate if there is substance to their 'we are clean' campaign :

Q - Why did they transfer $55m against RBNZ's regulatory order? What other transfers (and how much) were they getting ready to make if the RBNZ did not act proactively to stop them from doing so?

Until they answer that question, they have ZERO credibility.

I can't comment on their credibility - just said that they are asking good questions.

Lets not forget that the RBNZ is holding the authority but seems to have no accountability to anybody. It would not be the first time that our banking and insurance oversight is badly failing. Chris Lee released recently an interesting book "The Billion Dollar Bonfire" describing the SCF story. Another sad tale where one wonders which role our regulatory authorities play ... other than keeping their eyes firmly closed unless they see a financial train wreck. If they do, than they pounce and make sure that the site of the accident gets nuked to (financially) destroy everybody involved and to maximise the damage to all stakeholders.

[Balance]

I can't comment on their credibility - just said that they are asking good questions.

Lets not forget that the RBNZ is holding the authority but seems to have no accountability to anybody. It would not be the first time that our banking and insurance oversight is badly failing. Chris Lee released recently an interesting book "The Billion Dollar Bonfire" describing the SCF story. Another sad tale where one wonders which role our regulatory authorities play ... other than keeping their eyes firmly closed unless they see a financial train wreck. If they do, than they pounce and make sure that the site of the accident gets nuked to (financially) destroy everybody involved and to maximise the damage to all stakeholders.

Good questions which they can require the RBNZ to answer with a judicial review.

Why have they not done so but spend money on PR?

Answer is obvious.

[Balance]

I can't comment on their credibility - just said that they are asking good questions.

Lets not forget that the RBNZ is holding the authority but seems to have no accountability to anybody. It would not be the first time that our banking and insurance oversight is badly failing. Chris Lee released recently an interesting book "The Billion Dollar Bonfire" describing the SCF story. Another sad tale where one wonders which role our regulatory authorities play ... other than keeping their eyes firmly closed unless they see a financial train wreck. If they do, than they pounce and make sure that the site of the accident gets nuked to (financially) destroy everybody involved and to maximise the damage to all stakeholders.

http://www.stuff.co.nz/business/mone...-and-adversity

Enuf said about Chris Lee - the man who had his own finance companies rating system and who thought Allan Hubbard walked on water.