BNZ pulls off a PR coup

By Nick Stride

Friday 17th September 2004

Bank of New Zealand this week bowed to pressure from the New Zealand Exchange and picked up the tab for the Access brokerage collapse.

Media reports portrayed the bank as a "saviour" and a "white knight," turning a blow for its shareholders into a public relations coup.

The maximum extent of its loss will be $4.3 million as the NZX is chipping in its $460,000 fidelity fund.

The bank said it had no legal obligation to recompense Access' out-of-pocket clients, but accepted there was a perception they had funds in their own names in a BNZ account.

The report of the receiver, Ferrier Hodgson, showed family trusts associated with director Bill Garlick owe Access $638,000.

Garlick last week denied he had borrowed money from the brokerage to fund the purchase in February of a 20% shareholding from former director Murray Bolton.

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