What Credit Rating for a Financial Institution that ran out of Cash Last Week?

UPDATED (23 Nov): Off all the threats to the future of South Canterbury Finance (outlined here and here), perhaps the most important threat is one of the most difficult to control: the opinions of others. And it is here that some people's opinions are more important than others.

Stuart Nash MP - Financial Alarmist (on the Crown Retail Deposit Guarantee Scheme)

Who is the most Alarmist and Inaccurate proponent of the Crown Retail Deposit Scheme?

Today I have found the answer in a transcript of a Parliamentary Debate on the Crown Retail Deposit Scheme Bill that was rushed into law last month. It appears that MPs had plenty of very good criticisms of the scheme (huray!), but they all voted for it anyway (very bad).

Share Market to South Canterbury Finance: Not Interested!

Although it isn't surprising, with preference shareholders sitting on 65% capital losses and listed bondholders sitting on various levels of capital losses, that sharemarket investors aren't lining up to invest desperately needed capital in South Canterbury Finance and its proposed IPO.

South Canterbury Finance Receivership Coming Soon?

Yesterday South Cantebury Finance (http://www.scf.co.nz/), the largest non-bank owned non-bank Finance Company in New Zealand registered a new prospectus, and began again accepting deposits and debentures from the public.

This comes after its audited financial results for the year to 30 June 2009 were released, and the company's credit rating was downgraded to BB+ and put on Credit Watch in the last month or two.

Turning On a Dime: Crown Retail Deposit Guarantee Scheme

This one was submitted for an ethics essay requirement for a business management paper at the University of Waikato, and includes an ethical analysis of the decision to introduce the Crown Retail Deposit Scheme.

Turning On a Dime: Crown Retail Deposit Guarantee Scheme
This is a New Zealand public policy case of a Minister of Finance responding to the recent
international financial crisis. On 12th October 2008 Dr Cullen used powers under the Public
Finance Act to establish the Crown Retail Deposit Scheme (Treasury 2008). The scheme covers
registered as well as unregistered banks and other financial institutions that issue debt securities to the public. As at 31 May 2009 it covered NZ$126.3 billion in liabilities (Treasury, 2009), and it has had a substantial impact on the distribution and flows and cost of funds to financial institutions (RBNZ, 2009).