Carelessly-New Zealand has followed America

New Zealand has been a follower in the finance world by failing to provide adequate policing and policy, allowing the fearless freewheelers no bounds.

In America in 1977 the Community Reinvestment Act (CRA.) was passed. In the report “Architects of Destruction” it states the CRA looked “good on paper” - it also states “..in a sense [the CRA] – held hostage the banks, forcing them to give borrowers as much money as the borrower needed, not deserved or could pay for”.

The finance companies in New Zealand acted the same, and have been allowed to pedal investor’s money with a “she’ll be right” attitude, not being intelligent enough to see the well would dry up if they continued to run a business on the flawed business model.

In the past 18 months, since the fall of Bridgecorp and the other finance company troubles, both Governments have been practically silent on addressing the real issues, those being, the actions and greed of the finance company players.

New Zealanders have not got the support of the Government.

In the US, President Barack Obama has publicly voiced outrage at a 2008, US$18.4 billion paid bonus to hierarchy in a troubled company. President Obama stated-

"That is the height of irresponsibility. It is shameful." President Obama’s statements are a strong message to investors that their president is intolerant of such practice and America will see action to seek accountability from those perpetrators.

However- New Zealand’s crisis which hit the headlines in 2007 has been shamefully kept under wraps by politicians.

At the Hanover moratorium meeting in December last year Mark Hotchin confirmed he would build his family home on Parietal drive- reportedly costing $30m.

Political leaders have not condemned shameful practices of Companies Directors who remain wealthy , living a luxurious lifestyle while their trusting investors tighten their belts and live with intense financial worry and hardship.

Coordinator of EUFA said from Auckland today “Our organisation has constantly called on government to act. Their silence is deafening.”

Correspondence to EUFA members and to the organisation from government is standard, weak and without conviction. EUFA have not been afforded any meeting with Ministers even though the organisation represents investors who are actually suffering from White Collar Crime.

Mrs Edmonds adds “Unless the Government take a coordinated approach - such as setting up a tribunal and increasing the policing resources for investors - the New Zealand economy along with many lives will be lost from the devastation and stress caused by some very greedy business people.”

http://www.wealthdaily.com/report/the-architects-of-destruction/391