Tag Archives: Money markets

NZ Banks creaming it overnight ?

Received from Gurglars
23/05/2016 4:13 am (GMT+12:00)

Subject: Banks Theft

I have sent this letter to my bank.
This type of arrogant theft by banks must be exposed and stopped! The stock exchange has recently shortened settlement days from 3 to 2 for this very reason! In some cases over the weekend banks can make 50% on overnight money markets, so they use YOUR and MY money to make huge profits whilst charging us interest on outstanding debts that could be amortised.

A sum of $***** was deposited to my account Saturday. At the latest it should be in my account Monday morning! Given the nature of internet transactions, the keeping of MY money for two days is in fact an act of theft. The monies have left the sender’s account and not been lodged in my account and therefore the bank has claimed some ownership of the money for two days when the bank is trading. This “theft” which could be presumed legal when banks had to have time to clear funds is no longer a “legal” action!

[ends]

My quick reply:

Excellent point. Yes they reap at our cost, bare-faced. Some banks over others have difficulty moving to processing 24/7…. more ‘instantaneously’. From discussion with colleagues, it appears ANZ has recently moved to “next morning” (including paying in on Saturdays) for deposits made after 10pm on Friday nights —which previously had a dogged (clip-ticket) wait until “after 10pm Monday” for transaction. Some shift has occurred(?).
Consumers need to stack on the pressure.
The Banking Ombudsman needs to investigate – the public should send letters their way.

New Zealand’s Banking Ombudsman Scheme
The Banking Ombudsman Scheme investigates and resolves disputes between customers and their banks. We are independent of scheme participants, customers, and government. Our service is free of charge and easy to use.
https://bankomb.org.nz/

### radionz.co.nz Tue 24 May 2016 7:00 am today
Morning Report with Guyon Espiner & Susie Ferguson
Reserve Bank keeping an eye on digital disruption on banking
The Reserve Bank is monitoring the impact of digital disruption on the banking sector, as a rapidly increasing number of unregulated players have the potential to undermine the existing financial system.
Audio | Download: Ogg  MP3 (2′07″)

Posted by Elizabeth Kerr

Bank toon-3228 [glasbergen.com] 1[glasbergen.com]

3 Comments

Filed under Business, Democracy, Economics, Finance, Media, New Zealand, Ombudsman, People, Public interest

Afternoons with Jim Mora: The Panel today [DCC interest rate swaps]

### radionz.co.nz Monday 5 November 2012
Afternoons with Jim Mora
http://www.radionz.co.nz/national/programmes/afternoons

The flirtations of our local bodies with money mechanisms on money markets that may be getting ratepayers into schtuck.

16:35 The Panel with Garry Moore and Finlay MacDonald (Part 2)
Topics – Every schoolboy used to know that, at the height of the empire, almost a quarter of the atlas was coloured pink, showing the extent of British rule. An Otago University academic says Dunedin ratepayers should be very concerned about losses on interest and currency swap schemes that appear in the council’s annual report. Millionaire Kim Dotcom would be putting his money where other investors wouldn’t if he goes ahead with plans to relaunch Pacific Fibre, according to Prime Minister John Key. (24′42″)
Audio | Download: Ogg Vorbis MP3 | Embed

16:50 Jim Mora, Dr Robert Hamlin and guests discuss Auckland City Council and Dunedin City Council activities with respect to interest rate swaps (IRS). Together, the councils may have squandered up to $200 million of ratepayer funds. Is a royal commission of inquiry required? In Dunedin City Treasury’s case, interest swap rates and financial derivatives may be being used to ‘assist’ stadium financing, and much more. In the city council annual report the IRS activity goes unexplained, being recorded as (multi-million dollar) losses (see page 146).

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The (NZ) Banking Ombudsman suggests some customers & their advisers don’t understand the product. [IRS and Derivatives]

http://en.wikipedia.org/wiki/Interest_rate_swap

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### stuff.co.nz Last updated 05:00 04/11/2012
Business
Banks ‘plundering society’ globally
By Rob Stock
Claims banks missold interest-rate swaps to businesses and local authorities have been making headlines around the world. Interest rate swaps are a derivative financial tool used by sophisticated businesses with skilled treasury functions to limit interest rate risk. But it is becoming clear that in places such as Britain, Italy and America, interest-rate swaps were sold by banks to organisations that did not understand the risks they were taking. In case after case, interest rate swaps often sold in 2007 and 2008 as “protection” against interest rates rising sharply have served mainly to protect bank profits by locking businesses and local bodies into high levels of interest ahead of those rates falling.
Read more

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This article is from the May/June 2012 issue of Dollars & Sense magazine.

The Swap Crisis
We have your city. Pay up, or else!
Interest rate swap deals have allowed the big banks to hold local governments and agencies hostage for tens of millions of dollars.
By Darwin BondGraham
In 2002 a little-known but powerful state agency in California and Wall Street titans Morgan Stanley, Citigroup, and Ambac consummated one of the biggest deals to date involving a type of financial derivative called an “interest rate swap.” A year later the executive director of the Bay Area’s Metropolitan Transportation Commission, Steve Heminger, proudly described these historic deals to a visiting contingent of Atlanta policymakers as a model to be emulated. Swaps were opening up a brave new world in public finance by extending the MTC’s purchasing power by $200 million, making a previously impossible bridge construction schedule achievable in a shorter timeframe. The deal would also protect the MTC from future volatile swings in variable interest rates. To top it off, the banks would make a neat little profit too. Everybody was winning.
Then in 2008 it all came crashing down. The financial system’s near collapse, the federal government’s unprecedented bailouts, and global economic stagnation mean that the derivative products once touted as prudent hedges against uncertainty have instead become toxic assets, draining billions from the public sector.
Read more

Posted by Elizabeth Kerr

127 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums