Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news that South Canterbury Finance (SCF) CEO Sandy Maier has acknowledged the placement of Allan Hubbard into statutory management has damaged SCF's drive to roll over NZ$1.3 billion in funds.
But Maier told the NZHerald that the Grant Thornton report released this week into Allan Hubbard's affairs appeared to be a 'non event' and showed Hubbard was 'not the next Bernie Madoff.'
Meanwhile the Timaru Herald reports that Hubbard cannot use his chequebook or credit cards and is being given NZ$1,000 a week for living expenses by the statutory manager. Hubbard is reported to be concerned that investors in his frozen funds will not receive their July interest payments. He has employed lawyers Russel McVeagh to challenge the
In Dunedin, BusinessDay reports that Forsyth Barr warned some clients, but not others, about the problems with Credit Sails before they blew up badly. Forsyth Barr said the decision about whether to pass on the warnings about Credit Sails was left up to individual advisors.
Meanwhile in the United States, the US Federal Reserve said the US economy had softened, but not enough for it to take remedial action. There are reports of a debate ongoing within the US Federal Reserve about whether to start a new bout of money printing known as QEII (Quantitative Easing II). The Dow fell slightly on the news.
The New Zealand dollar was strong above 72 USc in morning trade.