Good for Damien O’Connor. He’s calling for an enquiry into possible mis-selling of interest rate swaps to farmers. Good on Fairfax’s Rob Stock too, who has written extensively about this issue in the Sunday Star-Times.
In Britain, it’s a huge story; their Financial Services Authority has said that more than 90% of these interest rate derivatives could have been mis-sold. Compensation is going to be paid; the only question is whether it will be in the millions or billions. The Telegraph has a dedicated section covering the story, and a website “Bully Banks” has been set up to campaign for redress.
Here in New Zealand our banks are requiring farmers who have been caught by the fine print with higher interest rates and break fees to sign confidentiality agreements if they are to get any relief at all. Damien O’Connor is right to call for a select Committee enquiry – someone needs to looks under this rock.
Here the Commerce Commission is still deciding whether to investigate.