Banks caught amid EWC disaster

Mista_Mobsta said:
And now we know why the ANC wants to control the SARB so badly eh? The Prudential Authority, solely working under the SARB, has full authority to recommend legislation and issue/pull banking licences etc. Funny that hey...
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They already control SARB and the Prudential Authority.

They have the majority on the board, and appoint the governor and all that...

This "nationalisation" of the Reserve Bank is totally pointless, it changes absolutely nothing.
 
lumeer said:
Do you think that they'll go as far as to expropriate people's homes?
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I believe that at the very moment the EWC policy is assented to by the president, concerns over one's property possibly being expropriated will pale in comparison to concerns that will manifest in consequence of that assenting.

It's not the execution of that power that will cause most damage, it's the power the policy vests with government and eroding of general property rights that will be the damage causing event. Government won't even need to expropriate one square meter, the damage will already be sustained by then.
 
The IRR says the bill now makes provision for six instances in which no compensation is necessary, as well as a new proposal that new instances can be added by way of new statutes to the bill. Any new statute would only require a simple majority in Parliament to be enacted.
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Does anyone know where we can find the six instances?

This is the best I could find in a quick search: https://www.businessinsider.co.za/e...-be-expropriated-without-compensation-2018-12

...there are only 5 there though, but tbh that stuff doesn't seem too onerous.

Look, like any rational individual EWC gives me the cold sweats. It's definitely reminiscent of Zimbabwe and that alone is enough on several levels but also like a rational person I want to know exactly what it is. If, as indicated in the article above, it is abandoned land and land owned by Eskom, etc. then that's probably not a scenario in which white people are kicked out and their homes given to blacks, in which case the whole bank/bond panic is unfounded.

There is mention of farms in that article though, that's not good and of course: amendments to the constitution are always going to be hairy affairs.
 
xeslaro said:
I believe that at the very moment the EWC policy is assented to by the president, concerns over one's property possibly being expropriated will pale in comparison to concerns that will manifest in consequence of that assenting.

It's not the execution of that power that will cause most damage, it's the power the policy vests with government and eroding of general property rights that will be the damage causing event. Government won't even need to expropriate one square meter, the damage will already be sustained by then.
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There's already damage being done. Housing market is really, really bad atm.
 
ToxicBunny said:
They already control SARB and the Prudential Authority.

They have the majority on the board, and appoint the governor and all that...

This "nationalisation" of the Reserve Bank is totally pointless, it changes absolutely nothing.
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The selection of even a minority of the board ensures that there is some public scrutiny involved in the sense that the board isn't completely controlled. Yes the government has majority control but the public scrutiny is a safeguard against the bank falling into a political iron curtain.

THAT is why it's important to ensure the independence of the minority voting rights for board of directors.
 
Those of you who pay your bond via S/O directly off your salary, better change it to D/O
 
Mista_Mobsta said:
The selection of even a minority of the board ensures that there is some public scrutiny involved in the sense that the board isn't completely controlled. Yes the government has majority control but the public scrutiny is a safeguard against the bank falling into a political iron curtain.

THAT is why it's important to ensure the independence of the minority voting rights for board of directors.
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Its a modicum of public accountability, but the ANC have shown to not give 2 shytes about that...

Nationalising the Reserve Bank will ultimately change nothing. The ANC will do what they want, regardless of the minority board members...
 
The problem with the banks is that even if the law is on their side, it won't matter.

If that happened to me I would default and declare myself bankrupt. I think most people would do the same. I would choose bankruptcy over paying for a mortgage on a property I don't own.
 
Temujin said:
Banks will keep trying to claim the money
People will give them the finger
Banks go broke and close doors
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Wait, how many farms are we expecting to be EWC'd? I mean the top banks are pretty well off, surely they can take the hit?
 
Tman* said:
Umm, its not like paying for a cool drink mate;

A bond payment is probably the biggest debit order to go off on any home owners bank account each month. Here is a senario for you:

A: keep paying bond while an ANC comrade is living in your home, and you live on the streets

B: stop paying bond, use funds for alternate accommodation

its not about "refusal" or "willingness", its about survival.
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The thing is - if you stop paying your bond then they repossess the house. If the government has already taken they house what will they do ?
The entire premise of the bond is that they are able to take the property/house as collateral.
 
newby_investor said:
The keyword here is without compensation.

Homes have already been expropriated - I know a guy who used to live where the Centurion Gautrain station now is. He was paid roughly a market-related value for his house though.

The constitution as it currently stands does permit zero compensation if it's in the public interest, and the proposed bill basically explicitly hands this power to the judiciary to determine whether or not it is the public interest. My personal feeling is that if it would leave the home-owner homeless and without means to pay his debts, then the court wouldn't permit zero compensation.

Perhaps I'm naive, but I do think at least a little bit of sanity will prevail.
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You are forgetting one salient fact. The ANC intends to circumvent the judiciary system ...
 
xeslaro said:
I believe that at the very moment the EWC policy is assented to by the president, concerns over one's property possibly being expropriated will pale in comparison to concerns that will manifest in consequence of that assenting.

It's not the execution of that power that will cause most damage, it's the power the policy vests with government and eroding of general property rights that will be the damage causing event. Government won't even need to expropriate one square meter, the damage will already be sustained by then.
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Which is why it is imperative that the mandate lie with the judiciary and not the executive.

Imagine Mabuza, Ace or Malema as president with EWC in the hands of the executive.
 
SoldierMan said:
Wait, how many farms are we expecting to be EWC'd? I mean the top banks are pretty well off, surely they can take the hit?
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When **** goes down, **** goes down... 'property' - houses, office blocks, shopping centres, factories, hotels, schools and hospitals. People underestimate how fast **** goes down. Unemployment will hit like 50% with in a matter of months for example, good luck to banks getting blood from stones when everyones unemployed. Said this ages ago when all this 'gief land' crap started, it has nothing to do with land, no one wants land, no one wants a farm, they want what you have, house in the burbs with a pool and a car in the driveway
 
Temujin said:
When **** goes down, **** goes down... 'property' - houses, office blocks, shopping centres, factories, hotels, schools and hospitals. People underestimate how fast **** goes down. Unemployment will hit like 50% with in a matter of months for example, good luck to banks getting blood from stones when everyones unemployed. Said this ages ago when all this 'gief land' crap started, it has nothing to do with land, no one wants land, no one wants a farm, they want what you have, house in the burbs with a pool and a car in the driveway
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I think you are being over cautious...

Many small businesses will close almost overnight as the owners jump ship quickly.

I would expect unemployment to go from the 29% odd, to over 50% odd in a month.
 
Sinbad said:
There's already damage being done. Housing market is really, really bad atm.
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I'll be interested to know how this affects granting of new bonds. If EWC is passed, even if it is never exercised, it must change the risk calculation on the underlying bonded asset. Will the banks still consider your property an adequate security if it might theoretically evaporate at any point? The interesting aspect of the latest wording on the amendment bill is that nil compensation can apply specifically only to foreigners and previously advantaged (i.e. "white") people. So this could create a situation where whites, and only whites, cannot obtain bonds.
 
now the sh*t hits the fan and in a big way.

wonder how socialist countries like venezuela managed it?

or do people in those countries have to now fight for fruit trees in their backyards?
 
eg2505 said:
now the sh*t hits the fan and in a big way.

wonder how socialist countries like venezuela managed it?

or do people in those countries have to now fight for fruit trees in their backyards?
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Pretty much. Venezuela is fcked.
 
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