CBL debacle will only put our market on a par with Aussie,after the fun and games they are having with BIG and GSW.
Its just that the ASX has roughly 8 times more listings than the NZX. If their regulatory oversight and governance would be as bad as ours, they would need 8 defaulters for every CBL ...
And CBL is just the most recent example for NZX companies with apparent governance problems, they are certainly not alone - but don't get me started ...
Last edited by BlackPeter; 05-03-2018 at 01:45 PM.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
CBL debacle will be having a flow on negative effect on HBL - overseas investors would be wondering whether RBNZ has what it takes to supervise the financial sector.
Now is the time for very strong statements from the regulators on the state of our financial service industry.
Also wouldn't mind hearing something from HBL to set our minds at ease. Something like the SML statement after ATM announced the deal with
I have a little sympathy for FMA and there requirement to uphold commercial sensitivity - but I can be easily be persuaded otherwise.
However no sympathy at all for CBL who have an overriding responsibility to shareholders.
One can argue that CBL was doing the right thing - it was trying to raise new capital and any disclosures about how shallow its reserves were would have led to a 'run' and collapse.
Any sympathy however disappeared after they made the unauthorised $55m payments to the offshore entities.
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