Tag Archives: Credit SaILS

Forsyth Barr ‘should be booted’

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### 3news.co.nz Mon, 11 Mar 2013 10:48a.m.
Forsyth Barr to stay on Mighty River panel
The Government’s rejecting a call to remove Forsyth Barr from the panel running the selldown of Mighty River Power despite a Commerce Commission ruling critical of the company’s past. In a decision last week, the Commerce Commission said Forsyth Barr and French investment bank CALYON were “misleading and deceptive” in their marketing of $91.5 million in Credit SaILS bonds to investors in 2006. The product promised 8.5 percent interest income and capital protection – but Credit SaILS failed in 2008, and the bonds are now virtually worthless. The companies have reached a settlement with the Commerce Commission to create a settlement fund of $60m to be distributed to investors.
Economics writer Bernard Hickey says Forsyth Barr should be booted from the panel overseeing Mighty River’s float, saying its involvement risks undermining confidence in the sale.
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Posted by Elizabeth Kerr

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