People believe that their savings/investments are safe in the United States. They are not. After MF Global, PFG Best and Sentinel Group examples, our property is not safe. If you have money in an account that is guaranteed by the FDIC, do the math: a bank run in the United States cannot cover these losses. Whether the government devalues the fruits of our labor through redistribution and the printing press or it is stolen outright by brokerage houses or the government (GM Bonds), only those who recognize these facts and take appropriate measures now will save their wealth (and possibly their lives).
David DeGerolamo
h/t Tom R
Thousands have their cash frozen after collapse of Banksia Financial Group
RETIREES, schools and sporting clubs are in shock and fearful about the fate of their investments following the collapse of Banksia Securities.
Thousands of people hundreds of millions of dollars in losses after the shock collapse of Banksia Financial Group. Receivers McGrathNicol took charge of the non-bank financial firm, based in Kyabram in central Victoria, and froze investments on Thursday after the Banksia board found the company faced insolvency.
Questions are being asked of government regulator the Australian Security and Investment Commission over what actions it took prior to the $660 million collapse of the Banksia Financial Group.
ASIC was allegedly informed about the precarious position of Banksia, and a subsidiary Statewide Secured Investments 18 months ago, according to NSW property developer David Hawkins who was involved in litigation with the firm.
“The regulator has been on to them for about 18 months … (but) ASIC have sat on their hands,” Mr Hawkins claimed.
“Ive been waging war against them (Banksia), as have about four other people in relation to their lending practices,” he said.
Mr Hawkins was involved in court action with Banksia over a $2.2 million property deal after Banksia withdrew their support for the project.
But he said Statewide had been lending money in NSW “like a drunken sailor” when Banksia amalgamated with it in 2009.
He claimed Statewide had contested liabilities of $28-$30 million at the time but Banksia had insisted it would not inherit the firm’s debt, even though it provided security for costs in a number of court cases.
Mr Hawkins said major residential, hotel and commercial developments in Sydney had faced multi-million dollar valuation and financing problems, helping to bring the collapse on.
ASIC said it was “aware” of yesterday’s developments with Banksia but did not disclose when it was first notified about the financial group’s problems.
ASIC spokesman Andre Khoury said the commission was “actively engaged” with Banksia’s trustee and receiver.
Mr Khoury said ASIC was not a prudential regulator.
“ASIC’s historical work in this sector reflects the fact that a disclosure regime is in place for debentures, coupled with the requirement that a trustee is in place to monitor the issuer and seek to protect the interests of debenture holders,” Mr Khoury said.
Banksia appointed receivers yesterday owing investors $660 million.
Banksia fell into receivership after a recent review of its non-performing loans.
