The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.

“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.

“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.

“While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.

Discuss.



  1. Rodney says:

    Take my money, …please.

    I tell ‘ya. No respect.

  2. noname says:

    Banks are both the governed and the government’s economic overlords, such that; we dare not let them fail! Indeed, as good citizens we must feed and grow them until they are too corp-ulent to fail!

    Citizen, pray-tell what should you expect? Are not Americans to be the Voice of Business! Has Fox News Network not shown you, what is good for Wall Street is good for America?

    American’s have believed that Wall Street capitalism should define American business. American’s have believed Wall Street should define K Street. American’s have believed K Street should define our Laws. American’s have believed money is the voice to buy our votes! It’s a perfect business cycle and American’s believe!

    Business is people, our Supreme Court says so, and American’s believe! What’s good for people is good for business and American’s believe! It’s legal and constitutional and American’s believe!

    Money buys justice and truth, American’s believe more!
    Those who can’t guild the pockets of justice must be detained for any insignificant legal infraction and American’s believe!

    You know, Kristallnacht, the broken windows criminological theory of public norm-setting and American’s believe!

    Do you believe?

    Banks, political elites, wealthy elites are by definition far outside the norm, they are the exceptions we must ignore their infractions and American’s believe! Our legal system must strictly even violently enforce, regulate, oversee, monitor, track, maintain, demand public norms and American’s believe!

    Common people must be pull down, held back, least they become too demanding, wanting a say in self-governance or becoming too big for their breeches and American’s believe!

    American’s must believe; we have far too many nay-Sayers, far too many claiming the king has no clothes!

    Be positive, move forward, be obedient and one with your Over-Lord!

    The Daleks and banks only want to do well by U.S.

    Why do you continue to resist, believe? Do not our brave solders die for your transgressions, believe?

    Take the American oath and believe! May the Peace and Prosperity Alliance follow, monitor, track, maintain and track you always!

    Be good, be American!

    • RS says:

      Not a clue that Dodd(D)-Frank(D) codified the too-big-to-fail requirement that taxpayers bail out banks.

      Bankers fund more Democrats than they do conservatives.
      It’s not just guilt, it’s services for payment.

      • noname says:

        Really, there are an array of principal aspects

        Dodd(D)-Frank(D) Act

        It introduced more stringent regulatory capital requirements, incorporated the Volcker Rule and”required Large companies to submit “living
        wills” and update periodically to regulators in the event of financial distress”

        Then you have Sarbanes-Oxley Act, by Sen. Paul S. Sarbanes (D-MD) and Rep. Michael G. Oxley (R-OH), was signed into law by George W. Bush in July 2002.

  3. nunyac says:

    The prospect of putting your savings in physical precious metals is looking better and better. Think I’ll “RUN” down to the bank and start that process next week. Stocks should be a good shelter against dollar devaluation (printing) but if the government can pass a law that justifies stealing money from a savings account then why not a law justifying theft from a securities account.

    • orchidcup says:

      There are already laws that justify theft by the government.

      It is called the tax code.

      • LibertyLover says:

        The largest theft occurs through inflation of the money supply. With the Fed printing money hand over fist and the government griping about a reduction in the automatic increase in spending to pay for the automatic increase of the budget, Americans are being robbed blind just by breathing.

        Precious metals really are the only true safe haven. They won’t increase in value over time but they will be worth more “dollars” over time.

      • noname says:

        Of course orchidcup!

        When you drive on roads, protected by police (unlike living in Mexico), educated in schools, breath air without choking (unlike living in China)….you sir are an accomplice in theft and more.

        Give us your address so that our courts can pluck you from your lazyboy and deliver swift justice!

  4. MikeN says:

    Whereas in the US, they merely take from the public to give to government workers.

    • noname says:

      MikeN,

      You mean:

      “Whereas in the US, they merely take from the public to give to” BANKS or WALL STREET!

      Bill Cosby’s “Brain Damage” could just as well be talking about all conservatives!

  5. Hmeyers says:

    Putting aside other issues:

    Funny how the guy who has his $$$ invested in stocks or real estate isn’t affected …

    Just people with $$$ in the bank.

    Under this plan, you should invest all your money in investments and attempts to raid the bank won’t affect you at all.

    [Skipping the other issues here ...]

  6. Glenn E. says:

    I can remember thinking once, that NZ would be a really nice place to live. Where all the crap the US Govt. gets up to, doesn’t happen. But now this happens. What went wrong NZ? When did you lose your soul? Was it the film industry invasion, that cinched it? They came because of the cheaper labor, (or lack of labor unions). And sucked all the good sense out of the nation, along with the scenery.

  7. Liz says:

    This is a load of lies, I live in NZ and it is not happening.