However, as RBNZ deputy governor Grant Spencer said yesterday, the main alternative, other than an e

Yes, the Reserve Bank of New Zealand is pressing ahead in a decade-long process of convincing the Australian-owned banks that its preferred bailout process, known as open bank resolution (OBR), holiday car rental orlando fl will be adopted.
However, as RBNZ deputy governor holiday car rental orlando fl Grant Spencer said yesterday, the main alternative, other than an expensive taxpayer bailout, is deposit insurance, which was in place in Cyprus and much of Europe and had clearly done nothing to prevent the global financial crisis.
Under OBR, every depositor is exposed to being made to take a "haircut" on their deposits to help save a failing bank. Under the proposed process, the RBNZ would shut the bank's doors temporarily, spend a couple of days calculating how big a haircut is required, and apply it immediately.
Unlike in Cyprus, where OBR has been imposed out of the blue from the European Union headquarters in Brussels, this is something banks have known about for years. To the extent that the depositor holiday car rental orlando fl in the street had no idea, Greens co-leader holiday car rental orlando fl Russel Norman's populist utterances on the issue have done many a favour.
According to The Economist this week, Cyprus had an outsized, Iceland-style banking system. It was heavily exposed to the Greek economic meltdown, but had kept its head above water, partly thanks to "dodgy Russian money".
In other words, a taxpayer bailout in Cyprus holiday car rental orlando fl could see law-abiding Europeans bailing holiday car rental orlando fl out the Russian mafia - clearly tricky politics. Now, Cypriot politicians are in Moscow trying to avoid the "haircut" by appealing for Russian help.
"At some stage, Europe should have laws that force them [uninsured depositors] to lose money in a bust. But, given the risk of precipitating panic elsewhere, this newspaper does not favour writing them down now."
No-one took any notice holiday car rental orlando fl of The Economist. Brussels sought to impose the haircut, Italian and Spanish depositors panicked, there was a run on the Cypriot banks, and world financial markets wobbled violently this week. Now, the Cypriot Parliament is refusing to implement the haircut.
While the Greens can say what they like about the scheme, little expecting to hold economic portfolios, Labour's economic spokesman, David Parker, knows Labour supported OBR when it was last in Government. Labour's twist on the issue is that the first $30,000 of all deposits would be beyond reach of the haircut, to protect small savers' nest-eggs.
Fair enough, but it's a rather less resonant line with the Left than Russel Norman's, and is typical of the way the Greens' sharper, less constrained positioning continually undermines Labour's ability to be heard on key economic issues.