Stronger hints from Key that there will be no government bailout of South Canterbury Finance. I wonder if the deciding factor was the cashflow? The money to refund debenture investors is there in the deposit scheme but if they wanted to buy a couple of hundred million dollars of toxic assets they’d presumably need to borrow the money offshore. English has delayed his trip to Asia to deal with the crisis – this is probably the most serious challenge this government has faced (at least that we’ve heard about).
It’d be nice to hear the Commerce Minister explain what steps he’s taking to prevent another disaster like the finance company collapses from occurring in New Zealand.