For immediate release
Friday 31 October 2008
John Key too soft on banks
National should demand more in exchange for guarantees
Bank workers’ union Finsec says John Key is naïve if he thinks a sufficient quid pro quo for a wholesale deposit scheme
is asking the Australian owned banks to be nice to their customers.
John Key said today, “My expectation is that in light of this, banks will be very careful about the manner in which they
deal with customers who may, as a consequence of the global financial crisis, find it hard to meet their obligations.”
“John Key’s comments to the banks are akin to a slap on the wrist with a wet bus ticket,” said Finsec Campaigns Director
Andrew Campbell.
Campbell said that Key was missing an opportunity to demand accountability in return for the taxpayer underwriting our
banks.
“In the midst of this crisis, some of our banks have increased their targets and put more pressure on customers to take
on debt they may not need or be able to afford. The gentleman’s agreements Key is seeking from the bank CEO’s will not
work,” said Campbell.
“The quid pro quo needed for the wholesale deposit scheme is strong lending regulation attached to it. New Zealand tax
payers need to know that the offshore bank borrowing they are underwriting is not then going to be unethically pushed
onto them through dodgy lending practices here,” said Campbell.
“Key needs to start adopting policy that is in the interest of bank customers rather than the interests of the banks
themselves,”said Campbell
ENDS