web analytics
The Standard
Advertising

Is New York Mellon Corp Bank a Mum and Dad Investor?

Written By: - Date published: 11:40 am, October 31st, 2013 - 40 comments
Categories: capitalism, Economy, john key, national, Privatisation, same old national - Tags:

Asset sales Mum and dad investor

Stuff is reporting that The Bank of New York Mellon Corporation has purchased a hundred million shares in Meridian, 8% of the total shareholding.

I guess this was utterly predictable but the news still fills me with rage.  As predicted we are watching our wealth producing and strategically vital assets being sold overseas.  Stand by as the balance of payments worsens as locally generated wealth flows to overseas corporations.

And if you want to read a scathing denunciation of the asset sale process then this report is it.  The report is written by that well know radical the editor of the Dominion Post.

Some highlights:

One wonders what John Key, currency trader, would have made of the rationale of John Key, prime minister, for the failure of Solid Energy, a company valued two years ago at $1.7 billion and now dependent on the goodwill of its bankers to continue trading. If the state coalminer had been partly privatised, it probably would not be in the mess it was now in, Mr Key said yesterday.

One doubts he would have been as sanguine as his later self. More likely he would have advised his clients to have no truck with an outfit overseen with such nonchalance.

Agreed.  The real scandal here is that under this Government’s watch Solid Energy has become a cot case business.

One wonders also what John Key, currency trader, would have made of a business that floated a valuable asset during an economic downturn, received a lower return than anticipated, and then, amidst even greater uncertainty, floated an even more valuable asset.

One thing is certain. John Key, currency trader, could have told John Key, prime minister, what the outcome would be – a low price and a low take-up rate from first-time investors.

The Government’s asset sales programme has been an unmitigated disaster – so disastrous it borders on economic vandalism. Valuable assets built up over generations have been hocked off at firesale prices to a handful of investors because Mr Key’s Government could not bear to admit now was not the right time to sell. Arguing that partial private ownership is an improvement on the status quo whatever the price is fatuous.

I could not agree more.

Mr Key’s partial privatisation programme has been driven by political, not economic, imperatives. The price is being paid by everyone.

In the industry in which Mr Key made his fortune, ignorance of the bottom line is a crime for which there is only one price. He will be hoping politics is more forgiving.

This presumes of course that there is an economic justification for the share sale process.  Looking at the shambles that is developing I somehow doubt it.

Update:  It appears that BMYNC needs a new calculator.  Although its original filing with the Stock Exchange used the figure 8.12% it has now filed a subsequent document confirming the figure is 4%.  It appears it did not take into account the Government’s shares in calculating its percentage. And the Government thinks that private enterprise is smarter …

40 comments on “Is New York Mellon Corp Bank a Mum and Dad Investor?”

  1. fambo 1

    Our PM is a bad-assett

  2. Tat Loo (CV) 2

    $2B case against BNY Mellon for pushing the “worst price of the day” on to customers continues

    What a kleptocracy.

    http://www.reuters.com/article/2013/08/06/bnymellon-nyag-lawsuit-idUSL1N0G71JN20130806

  3. aerobubble 3

    Energy use isn’t growing, well, the only potential growth is in electric car uptake and that’ll be twenty years away (if ever).

  4. ghostwhowalksnz 4

    The vultures circling will bring other carrion feeders in for their share !

  5. Tiger Mountain 5

    The ring pull opener on a huge ol’ can of “told ya so” is indeed about to be ripped open.

    Mum and dad? Dumb and Mad.

  6. vto 6

    It keeps getting worse

    What an absolute disaster

    John Key, the balls-up king

    • tc 6.1

      It’s no balls up vto, from a US shareholders perspective this is excellent business.

      Wonder how many govt MP’s trust funds hoovered up shares to create a potential conflict of interest

      • SpaceMonkey 6.1.1

        Agreed… John Key is meeting all his KPIs and SLAs and then some. He’s got a nice bonus waiting for when his tenure as PM is over.

  7. tc 7

    Where have all the trolls gone with their erstwhile logic behind why this being such a great deal for NZ ! Chris 73, Wayne, Ole BB, KK come on who’s rostered on today.

    • richard 8.1

      Doesn’t auger well for Meridian if Mellon can’t work out how much they own of it
      https://www.nzx.com/companies/MEL/announcements/243122

      • mickysavage 8.1.1

        Yep just saw that. And I thought that those private enterprise guys were brighter and smarter?

        • alwyn 8.1.1.1

          The announcement by Mellon is in fact accurate. It never claimed that they owned 8.12% of the shares in the company. It did say that they owned 8.12% of the shares in the class, which is the shares that are available to be owned by the public.
          It is Fairfax that then interpreted this to be 8.12% of the Company. One can’t really expect Fairfax to get anything right of course. One has only to look at their editorials to see that.

          • mickysavage 8.1.1.1.1

            Partially but they made the disclosure thinking that they had amassed a “substantial holding”. Under section 22 of the Security Markets Act 1988 they have to make a disclosure if they accumulate more than 5% of a class of the company’s shares.

            And have a look at the Fairfax editorial above alwyn. It is one that I cannot fault …

            • alwyn 8.1.1.1.1.1

              I suppose it depends on what you mean by a “class of shares”. If a class of shares is the instalment receipts than they probably were correct to make the announcment.

              Gosh, I have just read the editorial. You have given me evidence, at least in my view, that my statement was right. I guess we will just have to agree to disagree.

            • BLiP 8.1.1.1.1.2

              And have a look at the Fairfax editorial above alwyn. It is one that I cannot fault …

              Allow me to explain. Rather than an “unmitigated disaster”, as the Anonymous Failfax scribe states, the privatisation of New Zealand’s essential infastructure is a whopping success for John Key and his bankster mates. Where the editorial really fails is in its distinction without a difference – John Key the money trader is exactly the same as John Key the prime minister. Throughout his entire tenure of the premiership, John Key has never acted as anything other than a money trader. Far more grievous than his looting of the public asset base, has been John Key’s money-trader attitude to democracy and human rights. New Zealand sovereign laws are, to him, as much a commodity as milk. So sure, the Failfax piece says something we’ve been saying since Labour started the process, but it fails to address the idea that John Key has never acted in the best interests of all New Zealand and has never stopped being a money trader.

  8. Will@Welly 9

    Who said the asset sales were a balls up ? Now we can see who the real investors are – certainly not the mum and dad investors. John Key’s holiday house and knighthood just gets more attractive as each day ticks by. When Key does retire, expect him to pop up on Fox as their financial commentator.

  9. marsman 10

    John Key and his coterie are vandals .With virtually all of their so-called policies they have managed to steal, destroy, warp and demean pieces of our country and our lives. Instead of a knighthood Key and Co need a lengthy stretch in prison, triple bunked in tiny cells, bread and water.

  10. Ok, Here goes: I told you so, I told you so, I told you so. :mad:

  11. captain hook 12

    anyone checked the share registry yet?
    how much of it did they get.

  12. captain hook 13

    ooooopssssss!
    8%.

  13. billbrowne 14

    Why were retail investor’s applications scaled?

  14. One Anonymous Knucklehead 15

    So the DomPost has decided it’s time for a change, have they? Interesting choice of word, vandalism. I don’t suppose the DomPost will be tendering any sort of apology for its complicity in this crime.

    Remind me, when vandals break my windows, do I have to pay them to make good?

    Take back our property without compensation. Make clear that it is a punitive measure designed to shock and awe future vandals. Send a clear message to the market that when you fuck with us, we fuck back.

  15. TightyRighty 16

    who was that chinese guy / chinese government controlled corporation that purchased welllingtons (the capitals) line network in the early 2000’s?

  16. Tracey 17

    TR

    are you saying a credible trade would have advised key to keep selling or not, I cant tell from your comment.

    aside

    I guess us banks didnt suffer for too long from the crisis of its own making

    • Tat Loo 17.1

      I guess us banks didnt suffer for too long from the crisis of its own making

      It’s amazing what several trillion dollars of government handouts to banksters can paper over.

      Meanwhile, for those people in the US who have run out of their unemployment insurance payments – sorry, you’re fucked, there’s no money left for you.

  17. Paul 18

    Traitor
    n.
    1. a person who betrays another, a cause, or any trust.
    2. a person who commits treason by betraying his or her country.

    Treason
    n.
    1. Violation of allegiance toward one’s country or sovereign, especially the betrayal of one’s country by waging war against it or by consciously and purposely acting to aid its enemies.
    2. A betrayal of trust or confidence.

Important links

Recent Comments

Recent Posts

  • Taxpayers not suckers when it comes to casino lemon
    The Government should not be asking New Zealanders to stump up extra cash to bail out John Key and Steven Joyce’s dodgy SkyCity convention centre deal, Labour Leader Andrew Little says. "A deal is a deal is a deal. SkyCity… ...
    6 days ago
  • Supreme Court decision an early Christmas present
    Women on low pay in New Zealand have been given an early Christmas present with yesterday’s decision by  the Supreme Court not to intervene in a decision of the Court of Appeal, says Labour's Spokesperson for Women's Affairs, Sue Moroney. … ...
    6 days ago
  • Dunedin Hospital needs more than drip feed
    An ongoing and embarrassing pattern of major building leaks and equipment failures at Dunedin Public Hospital has been revealed in papers released under the Official Information Act, Dunedin North MP David Clark says. “Documents released under the Official Information Act… ...
    1 week ago
  • Dunedin Hospital needs more than drip feed
    An ongoing and embarrassing pattern of major building leaks and equipment failures at Dunedin Public Hospital has been revealed in papers released under the Official Information Act, Dunedin North MP David Clark says. “Documents released under the Official Information Act… ...
    1 week ago
  • 17 too young for teens to be shown the door
    Laws which see young people under the care of CYFS abandoned once they turn 17 will mean at least a dozen young Kiwis will be left to fend for themselves over the December festive season, Labour’s Children’s spokesperson Jacinda  Ardern… ...
    1 week ago
  • 17 too young for teens to be shown the door
    Laws which see young people under the care of CYFS abandoned once they turn 17 will mean at least a dozen young Kiwis will be left to fend for themselves over the December festive season, Labour’s Children’s spokesperson Jacinda  Ardern… ...
    1 week ago
  • National’s albatross, taxpayers’ curse
    Government consideration of further corporate welfare hand-outs to SkyCity for its convention centre shows just how weak the original contract was, Labour’s Economic Development spokesperson David Clark says. “Taxpayers will be appalled to hear that on top of the humiliating… ...
    1 week ago
  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    1 week ago
  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    1 week ago
  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    1 week ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    1 week ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    1 week ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    1 week ago
  • Gerry Brownlee’s revolving airport door story
    A new report shows Gerry Brownlee is the latest Cabinet Minister to have contracted the infectious tell-porkies-until-you-are-caught disease, Labour’s Chief Whip Chris Hipkins says. “A Civil Aviation Report out today shows that despite being an extremely recognisable figure, Gerry Brownlee… ...
    1 week ago
  • Govt spend on transport out of step with reality
    The National Government is planning to allocate ever increasing amounts of taxpayer funding to build expensive new motorways despite record numbers of New Zealanders flocking to buses and trains, said the Green Party. The Government released its Government Policy Statement… ...
    GreensBy Julie Anne Genter MP
    2 weeks ago
  • Govt spend on transport out of step with reality
    The National Government is planning to allocate ever increasing amounts of taxpayer funding to build expensive new motorways despite record numbers of New Zealanders flocking to buses and trains, said the Green Party. The Government released its Government Policy Statement… ...
    GreensBy Julie Anne Genter MP
    2 weeks ago
  • Solar homes stymied by Govt inaction
    Government inaction is allowing the big power companies to discourage the nascent solar power sector, the Green Party said today. Green Party MP Gareth Hughes launched a petition today calling on the Government to empower the Electricity Authority to act… ...
    GreensBy Gareth Hughes MP
    2 weeks ago
  • Way opening for April Sun in Cuba
    The United States of America’s President’s historic announcement yesterday to restore diplomatic ties with Cuba should be applauded by the New Zealand Government. The announcement marks a turning point in more than five decades of hostility between the two countries… ...
    GreensBy Kennedy Graham MP
    2 weeks ago
  • Minister ducking for cover over ‘Diplomat Case’
    Apparently the Ministerial Inquiry into what now seems to be being referred to as ‘The Diplomat Case’ ( I have a few other names for it) has been completed and is in front of Foreign Affairs Minister McCully. Initial Reports seem to… ...
    GreensBy Jan Logie MP
    2 weeks ago
  • Biosecurity it’s everyone’s responsibility
    Biosecurity costs New Zealand millions of dollars in attempting pest eradication and much more in ongoing management of pests in farming, horticulture, beekeeping and conservation, as well as in our own backyards and recreation areas. More work must happen at… ...
    GreensBy Steffan Browning MP
    2 weeks ago
  • Failure to diversify puts prosperity at risk
    Beyond the news that a long-promised surplus is unlikely, further embarrassment is hidden in the fine print of the half year economic and fiscal update, Labour says. "National’s failure to rebalance the economy is further exposed in projections from its… ...
    2 weeks ago
  • Ombudsman probe targets Ministerial integrity
    John Key is on notice that the entrenched cynical and manipulative abuse of official information requests by his Government will no longer be tolerated, Labour’s Open Government spokesperson Clare Curran says. “The announcement by the Ombudsman of a wide-ranging review… ...
    2 weeks ago
  • Bill English’s face is redder than his books
    The Government owes New Zealanders an apology for failing to deliver the surplus it spent four years and two election campaigns promising, says Labour’s Finance spokesperson Grant Robertson. “Bill English’s face is redder than the Crown accounts. This is the… ...
    2 weeks ago
  • Is the Health Minister accountable to the public? He doesn’t seem to thin...
    Lately I’ve been involved in a sort of farcical standoff with the Health Minister, who seems to be under the illusion that I have no right to ask questions about conflicts involving Health Promotion Agency Board member Katherine Rich, and… ...
    GreensBy Kevin Hague MP
    2 weeks ago
  • Irresponsible tax cuts lead to seventh successive deficit
    National's borrowing to pay for cutting the top tax rate was irresponsible and will likely lead to a seventh successive deficit, the Green Party said today. Treasury have forecast a $572 million deficit this year in its Half Year Economic… ...
    GreensBy Russel Norman MP
    2 weeks ago
  • Minister closes down dissent on climate change
    Minister closes down dissent on climate change In a threatening letter to Maori leaders, Minister for Climate Change Tim Groser says he will be requiring future international delegations to toe the party line, Labour’s Climate Change spokesperson Megan Woods says.… ...
    2 weeks ago
  • Farewell at Phillipstown
    Last Wednesday, I attended the farewell for Tony Simpson, Principal of Phillipstown School. It was a very emotional event where many of us in the large crowd shed tears. Bagpipes and tiny tamariki performing kapahaka brought the house down and… ...
    GreensBy Catherine Delahunty MP
    2 weeks ago
  • The CIA Torture Report
    Earlier this week, the United States Select Committee on Intelligence released the Committee Study of the Central Intelligence Agency’s Detention and Interrogation Program.  The report, which was five years in the making, looked into the CIA’s interrogation techniques from 2001… ...
    GreensBy Kennedy Graham MP
    2 weeks ago
  • A welfare system for the 21st Century
    Today Child Poverty Action Group released a background paper on ‘The complexities of ‘relationship’ in the welfare system and the consequences for children.‘ The report includes 16 recommendations to modernise our welfare system which is no longer fit for the… ...
    GreensBy Jan Logie MP
    2 weeks ago
  • James Shaw’s adjournment speech on behalf of the Green Party
    It is a great honour for me to speak on behalf of the Green Party in this adjournment debate. I thank my colleagues for the privilege. I became a MP only 12 weeks ago, a period of time that seems… ...
    GreensBy James Shaw MP
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere