Comment history

anansi says...

Why should the taxpayers be forced to prop up this bank? This bank should be shut down or sold to the highest bidder asap.

On BOB ‘boggles mind’ with 46% bad loans

Posted 16 December 2016, 11:05 a.m. Suggest removal

anansi says...

For the accountants out there, BOB's journal entry for the bailout was as follows:

Debit: Due from Govt. - $100M (to be paid to BOB with interest)

Credit: Loans Receivable - $45M (bad loans transferred to Govt.)

Credit: Retained Earnings - $55M (free money for BOB!)

anansi says...

Adrian,

Agreed that crime is a more pressing issue, but the $100M taxpayer bailout of BOB with millions more likely to be needed is a big issue as well. I would not say that a protest highlighting this issue was "pointless". The governments mishandling of BOB has cost the taxpayer millions.

Also, the gift of taxpayer money to BOB, which is partly owned by private individuals, was not legal. I say "gift" because the government gave BOB an IOU worth $100M and in return received loans worth only $45M. The $55M difference is a "gift", or transfer of wealth to BOB, boosting its balance sheet.