Quote:
Originally Posted by kingrat
pretty sure thats been discussed and explained many times in the past month. Long story short nafa gives mink ranchers huge loans to finish off mink with expectation that they get paid back plus interest once the mink sell. Mink sell for less than what is owed, ranchers declare bankruptcies and nafa dont get paid. Eventually the bank says no thanks to much risk to loan you money or allow a line of credit etc and boom here we are. 100% not cibc fault. Why do you think no other bank or lender would touch them.
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No, That was not the whole story the big truth actually it looks on the surface to be shady but I'm not an expert. When mink were so high the mink farmers only took a small amount of their earnings and left the rest with NAFA in a deferred funds account that was to pay 5%. Why this was done is the purview of much smarter men than me, perhaps tax mitigation? Of course $100 mink were unsustainable and in the rout that followed the final hammer dropped in September when the two largest mink farmers pulled 30 million they were owed out draining the deferred funds account. The rest went down the drain in a hurry. Much of NAFA's spending in China and Asia becomes understandable when viewed through the lens that they had to promote the "Walmart Fur" model. china was the only place to sell huge amounts of ranched fur in a market that didn't care what fur it was or where it came from.
More interesting is the current FIOD the Netherlands equivalent of the IRS investigating undeclared mink sales and bank accounts related to a large international fur auction.