Plain Speaking

I was pleased to see Governor Orr saying what he really thinks. I particularly liked the reference to "colourful" language. They are, after all, sensitive little flowers. Masters of passive aggressive, they struggle with clear statements.

I especially liked it when there was a "complaint" made to nanny. Knowing that the Chair would almost certainly be aware of the letter in advance, they realised they couldn't whine to Uncle, so they fired off to the Minister of Finance, thinking that her political obligations may help. They didn't. She did the right thing: stayed out of it (it's nothing to do with her.)

If it's anything like the time I copped a backlash from one of the banks with an action I took as a regulator, great hilarity would have ensued in the Chairs office, plus a few pats on the back. You know you are doing your job when they resort to political whinging channels and burn some of that donation capital.

I'd like to support the governor, not just for calling out the problems with the banks, but also lackeys like the New Zealand "Initiative" (I think of them as the business arm of the Taxpayers Union). I have to use quotes, because I can't bring myself to misuse the word. Initiative implies they come up with the ideas for their "analysis" (yes more quotes) themselves. An honestly held opinion, based on my assessment of the drivel I've seen them release.

I'd also like to put the term "colourful" into context. Adrian is a forthright and intelligent person. Salt of the NZ earth kinda guy. He loves his mum, so he tempers his public statements. My mum is less sensitive, so let's give an Adam version of colourful.

If I had been the author, it probably would have included terms like "arseholes" , "fuckwits" and "bullshit artists", mainly because of the way the Royal Commission in Australia exposed business practices and what they really think of their customers.

Yes, after 20 years of working in the financial regulatory space, not to mention dealing with their retail and commercial arms in the private sector, that is indeed my honestly held opinion. It's almost a shame I have ethics and wouldn't dream of breaching my oaths of secrecy. I can see how some become tempted. Mind you, maybe they'll send me a strongly worded letter so I get to tell some stories while protected by the legal system.

The NZ arms of these banks are the most profitable part of their respective groups, and have been for years. So let's not pretend that something about the way they are governed here hurts them. They are probably i) worried that the mothership wants to see them doing something, ii) positioning to present a "look what the nasty NZ Reserve Bank is doing to us" excuse for performance challenges (including the business debts they will have to write off due to having become fat and lazy on residential lending) and iii) concerned the Australian regulators might think they need to do more in light of the Governors approach.

The solace I take is that they have made it very clear that their shareholders are more important than their customers and the NZ economy. I guess that's a sort of plain speaking.