by the sounds of it the RBNZ was doing some investigating problems back in AUG ..but was never reported ? not a good look for the RBNZ
Here's a hypothetical situation for you.
Imagine you are buying a house. It's in Auckland, so, we are talking serious money. Let's say $1 million. You do all your due checks and processes, find the finance and sign up for the house.
Then you find out somehow or other about the existence of a confidential land assessment done for the council that reveals the property is on a landslip risk and therefore may be worth considerably less than what you've just paid - if in fact anything at all.
Would you be A/ "Oh, well, never mind, it's just money." Or would you be B/ "Why the @#X wasn't I told?".
Let's try another situation. In this case an investor decides to buy shares in a company, let's call it CBL. The investor does all the checks based on the publicly available information and announcements, satisfies themselves based on the available information that the company is sound, and then buys the shares, say for $3.17 each.
Subsequent to buying the shares our investor then finds out that the regulator of the industry our company has operated in, let's say insurance, and let's call the regulator the Reserve Bank of New Zealand, has been for months investigating the company and imposing increasingly stringent conditions on it and what it could spend. Further, agothe regulator/RBNZ had formed the view, expressed to CBLas long as August - but kept confidential - that CBL "has not been and is not carrying on its business in a prudent manner".
Would our investor have liked to have known this? Weren't they entitled to know this? And would they have paid $3.17 a share if they had known? Well, of course not.
So, the first situation is hypothetical and the second, unfortunately, all-too real.
