this probably isn't the right thread for it but it'll do. another kiwi finance house folds, this time after a run of funds - but it only took TWO DAYS of runs to close it down.
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10461596
"LDC was one of all the finance companies which responded positively last week to a Securities Commission query about their financial fitness. Perpetual Trust chief executive Louise Edwards told NZPA that LDC had experienced a run on its funds only over the last two days.
She said Nelson-based LDC had around half of its funds on call and its investors, both those who had funds on call and debenture holders, had rung demanding their money back.
She described the run as unprecedented.
"Liquidity is a real problem particularly if people have on call deposits," she said.
Ms Edwards said LDC was fundamentally a good company with good assets but was unable to sustain such a run.
It had assets across the board, but particularly in commercial property.
She believed investors would eventually get all their money back.
She said calling in the receivers was a "holding action" so that all investors would be treated fairly.
In the past 16 months eight finance companies have gone into receivership, owing investors $1.14 billion.
"
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10461596
"LDC was one of all the finance companies which responded positively last week to a Securities Commission query about their financial fitness. Perpetual Trust chief executive Louise Edwards told NZPA that LDC had experienced a run on its funds only over the last two days.
She said Nelson-based LDC had around half of its funds on call and its investors, both those who had funds on call and debenture holders, had rung demanding their money back.
She described the run as unprecedented.
"Liquidity is a real problem particularly if people have on call deposits," she said.
Ms Edwards said LDC was fundamentally a good company with good assets but was unable to sustain such a run.
It had assets across the board, but particularly in commercial property.
She believed investors would eventually get all their money back.
She said calling in the receivers was a "holding action" so that all investors would be treated fairly.
In the past 16 months eight finance companies have gone into receivership, owing investors $1.14 billion.
"
