However much I was looking forward to launching my own incredibly risky finance company, I’m glad that the RBNZ and Treasury have tidied up what was a terrible decision by the government to extend deposit protection to finance companies at no charge.
I particularly like the quote in the stuff article from an anonymous commentator
“The two-year deposit guarantee announced by the Government on Sunday was a “free lunch for [finance company] gluttons”
While I prefer the term economic opportunist to glutton:) I thin it sums up the situation before the rule change quite nicely.
Now that I think about it, 3% off the 30% return I’m promising may not actually be that bad given how risky our investments will be, we just need to work out how to get a BBB- credit rating….