This from MSM NZ: Bankers Plundering Society and NZ Farmers In Too Deep On Swaps

Rob Stock doesn’t want to talk to me because of my blog. That is a shame because it would save him a lot of time and effort as I was writing about the international financial crime family a lot earlier that he but for what its worth I am totally happy with the fact that this makes the MSM of NZ if only in a piddly little news paper (98.000 somewhere in the early 2000s) the Dominion post.

At least he is beginning to get an inkling about the fact that there is a connection between the international financial scams and what is happening here with our farmers and small city councils.

This from his article about international banks scamming innocents with their financial products:

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 organizations 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.

And her a quote from his third article on how farmers were coerced into buying Swaps:

Farmers were sold financial instruments that major companies manage through specialist departments, says the man responsible for the interest rate swap management program at giant Auckland water provider Watercare.

Jason Isherwood, Watercare’s treasury manager, says companies must have deep balance sheets and high levels of sophistication to take on the risk of complex and volatile interest rate swaps.

The latest Watercare annual report revealed a $60 million loss on interest rate swap contracts in the year to June 30, highlighting the risks of derivative positions on interest rates.

Isherwood said that although $60m was not a “pretty number”, it was relatively modest in the context of Watercare’s balance sheet.

One thought on “This from MSM NZ: Bankers Plundering Society and NZ Farmers In Too Deep On Swaps

  1. Judging by the torrent of indignant letters in response to Rob Sock’s articles I would say that the sheep of New Zealand deserve what is coming. When are they (apart from the few that look to this blog and elsewhere) going to wake up to the crimes that are being perpertrated on their watch.

    One indication why might come from the fact that WINZ provide assistance to buy a flatscreen TV (as a ‘necessity of life’) but not gardening tools.

    Thanks for covering this.

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