Wednesday, July 13, 2011

At Last, A Real Investigative Journalist

Whaleoil has broken some cracking stories over the last twelve months or so. More than any of the so-called professionals who are paid comfortable salaries and enjoy generous expense accounts.

Now he's pinged Labour's icon, that bullshit outfit called Kiwibank. That's the bank you have when you're not having aa bank. The bank which hasn't turned a genuine profit and never will.

At Kiwibanks inception, NZ Post was forced by Anderton and Cullen to turn over to Kiwibank it's most profitable arm, it's agency operation. This has allowed Kiwibank and Labour to falsely claim their bank is a success when the reality it Kiwibank is a flat out loss maker. Without NZ Post's agency business, Kiwibank would have failed and been wound up years ago.

Now it is revealed the bank is nothing but a subprime loan shark, preying on the gullible and poor, charging excessive interst rates and fees for dubious loans.

My cor­re­spon­dent is a par­ent who’s son applied to Kiwibank for a per­sonal loan to buy a car. He is an exist­ing cus­tomer of the bank and has been for a long time (they joined the chil­dren up when Kiwibank first opened).

They were aston­ished that the loan is actu­ally through GE Money (via Kiwibank), and the annual inter­est rate for the loan is 34.95%.

On one matter Whaleoil is wrong.

How­ever the more impor­tant issue is not that these preda­tory com­pa­nies exist but that the envi­ron­ment exists where peo­ple are des­per­ate enough to go to them. There is a credit cri­sis in New Zealand for the poor­est amongst us.

He seems to have forgotten the unavoidable truth that the receipt of a loan is a privilege, not a right. People who have insufficient income, adverse credit ratings and what is known in the lending business as a 'below average personal factor' do NOT have any right to borrow and should be prevented from borrowing.

Failure to adhere to this basic common sense principle of banking was the single cause of the financial melt down which beset the western world in the late 1990s and continues to afflict western economies. The Global Financial Crisis was brought about solely by the American Democratic Party's moves to buy votes by making easy credit available to black and white trash alike.

These loans were worse than worthless. They were toxic and were bundled up by unscrupulous and dishonest bankers who knew they were worthless and toxic but who made fortunes by selling them off to investers who were too dim to look past the dollar signs of apparent easy profits. When the toxins finally took over, it was these greedy investors (largely European banks) which took ill and which survived only on the largess dished out by unwitting tax payers.

Labour and National should be asking some seriously hard questions of Kiwibank's directors and the Chairman of its owner, NZ Post, about this tawdry chapter in Kiwibank's continuing sorry saga of failure.

What's his name again?

Ah yes, Dr Michael Cullen. The same nasty piece of work who gave away half close on a billion dollars or your money and mine to buy a worthless transport business.


pdm said...

Why am I not surprised. Cullen couldn't run a bath.

gravedodger said...

And sadly that "transport business" they sold was sans the profitable arms of road transport and the forwarding business leaving the 1800 technology driven main trunk rail corridor and its clapped out rolling stock.
Sale of the century for Toll Holdings.

mawm said...

So Adolf, why have Key and the Dipton genius not addressed this? KiwiBank is costing the taxpayer and, after all, Cullen is no longer the Minister of Finance and English is.

They are a lame duck government, scared to ruffle any feathers, scared to stick to their Party's principles….just interested in being re-elected. How sad!

Tinman said...

I often read this blog during or immediately after a meal.

Pictures of the fat Jafa beneficiary are not appreciated.

I simply emailed UDC when I needed a car loan, they emailed back "how much?" or similar.

Why the hell would anyone ask Kiwibank?

Psycho Milt said...

If you class repeating someone's complaint about a bank's interest rates as "investigative journalism," I guess this counts. I think actual journalists would set the bar a bit higher though.

Question: if Kiwibank is a terrible blight on the country that only the most corrupt and incompetent politicians could possibly countenance, how are we to assess the performance of the current govt, which has accepted the bank's profits without demur for three years now?

Anonymous said...

How long has Cullen been on Kiwibank's board? And how long was his predecessor chair of Kiwibank? And wasn't that former chair Jim Bolger, former National Party prime minister?

Perhaps a real journo would have found out when this outsourcing of car loans to GE occurred, and under which chair - the Labour one or the National one, eh? Could be an own goal otherwise, eh?

Mad Marxist.

Barnsley Bill said...

PM, while a return to the days when the baby killer and her team of grasping numpties ran the place might make you wet.. There are some of us that would rather have a benign Key and his do nothing in case the people turn on us type of government.
Yes they should have done something about kiwirail. Charging Cullen with economic sabotage and or treason would have done as step one. But blaming them for not fixing that which we moan about will not wash. The majority of voters have become so fat on feeding from labours bribes that any attempts to wind it back in quickly will simply see Labour back in.
No thanks.

Psycho Milt said...

Meh. There seem to be only minor differences between this govt and the last one. The annoyances are of a slightly different nature, but that's about it.

As to it being impossible to correct the terrible crimes of Kiwirail and Kiwibank (the names are certainly terrible crimes, I'll give you that) because the voters would be reluctant to give up Labour "bribes," in what sense are the voters getting fat from Kiwirail and Kiwibank? According to you lot these two SOEs are nothing but a hideous drag on the economy and straightforward theft from taxpayers' wallets - if you were right about that, the nation's voters would be overwhelmingly grateful to have such tumours excised, you'd think.

Flashman said...

It was high fives around the board room table as a team of Aussie railway sharpies celebrated their success.

"It was like clubbing a baby seal" observed one senior executive. "We just made him feel important, gave him a train model to hold and let him keep the pen afterwards. Bonza!"

Anonymous said...

Good job Whale Oil! I could never see any reason for Kiwibank. If the xenophobes desire a NZ bank what is wrong with TSB or SBS?


mawm said...

PM - If I'm not mistaken, the "glowing" results published by Kiwibank are not quite what you see. They always somehow do not include the huge loan being made by the government to keep then afloat.

Psycho Milt said...

If that is in fact the case, all the more fools Key and English for idly watching it continue. Buck stops with the owners - which in this case is the govt, representing us. Sounds like our representatives are performing badly and should be sacked...

mawm said...

PM - You are right of course. However I think this governement stopped representing us some time ago.