Tuesday, August 31, 2010

Bad property deals crushed New Zealand rural lender

Poisonous real estate deals brought down South Canterbury Finance. Just like the failed Bridgecorp, Strategic Finance, St Laurence and Hanover, the venom of property's fast-declining fortunes caught SCF offguard and delivered the killer blow.

Bad real estate loans are largely responsible for destroying $6 billion of investors' wealth in the other property financiers - at least until yesterday when South Canterbury lifted the tally to nearly $8 billion.

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