The Australia-New Zealand Shadow Finance Regulatory Committee met in Wellington in June 2008 to consider the implications of the US subprime market on the two countries. Its press release suggested that the involvement of the public sector in securisation “is a topic worthy of future exploration.” I wonder whether a joint New Zealand and Australian GSE might be an option.

2 thoughts on “KiwiMac?”

  1. What a truly horrible thought!

    It’s bad enough to contemplate an ever more invasive Government getting back into the business of competing with private banks, let alone a resurrection of securitisation, without adding trans-tasman politics to the mix.

    What they actually said was that covered bonds could be a good idea; that securitisation needs public oversight; and that financial advisory rules may not be an unalloyed blessing.

    All this I agree with, but KiwiMac: never!


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