The banks counterattack

By November 29, 2017Australian Politics

Prime Minister Malcolm Turnbull ruled out a Royal Commission into the banks despite pressure from the National Party and the likelihood that Nationals senator Barry O’Sullivan would eventually attempt to push for an enquiry1. With rebel National Party MPs supporting a Royal Commission in increasing numbers2, pressure was mounting. Despite this, many in the government reiterated their determination not to have an enquiry; indeed, George Brandis stated that such an enquiry would deliver nothing beyond more beach houses for the lawyers appearing before it.

Given that a banking Royal Commission would probably get the nod, if the Nationals in both houses supported it, the banks have called for a Royal Commission themselves, in a letter to the Treasurer, Scott Morrison. Although it is possible that Turnbull may have orchestrated this, his previous incompetence at managing such events, particularly as it takes attention away from the Dastyari beatup, indicates it is unlikely. It is most likely a counterattack by the banks to try to have a significant input into the terms of reference of the enquiry, to blunt any possible embarrassment it may cause for them. So, as George Brandis indicates, if you are looking to sell your place on the coast, now might be a good time to tart it up for some cashed-up lawyers.

Sources

  1. http://www.news.com.au/national/politics/nationals-revolt-barnaby-joyce-open-to-royal-commission-into-banks-malcolm-turnbull-rules-it-out/news-story/b2f80a53871c78778c5a32562f80a86b
  2. https://www.theguardian.com/australia-news/2017/nov/27/banking-royal-commission-another-national-signals-support-as-christensen-launches-site
  3. http://www.abc.net.au/news/2017-11-30/banking-royal-commission-announced-by-pm-after-big-four-letter/9209926

 

5 Comments

  • Dianna says:

    It is most likely a counterattack by the banks to try to have a significant input into the terms of reference of the enquiry, to blunt any possible embarrassment it may cause for them.

    No shit? The Royal Commission we have when we are not having a Royal Commission.

  • Jon says:

    Just another embarrassment for the hapless Turnbull. His judgement has always been rubbish but you know you’re down for the count when banks start to dictate policy. He’s a dead man walking, and deservedly so. I doubt those who voted for him expected to get an indecisive, spineless, backflipping hypocrite when they went to the polling booths.

    The sooner this parliament is dissolved the better even though I doubt the timid and limited Shorten will bring anything significant to the table. He should take heart from the fact that the conservatives were able to introduce a bank tax with barely a ripple. If resource tax reform (especially HowCosts’s disgraceful concessions to gas producers) isn’t on his hit list then he can take a hike as far as I’m concerned.

    • admin says:

      Jon,
      The number of things that need to be fixed at the end of this government is enormous. The banking RC is just a ‘show trial’ and there will be some minor embarrassment for the banks, but not much will happen, especially because the banks will almost certainly have input into the terms of reference. The biggest thing which needs to be fixed is the sort of thing which is rampant and was exemplified by Joyce initially accepting $40k from Rinehart.

  • Jon says:

    Well you can be certain the federal parliament as a whole – and the RC- will do nothing to fix the situation where people can be involved in (attempted) fraud yet escape criminal charges. http://www.afr.com/business/banking-and-finance/financial-services/judge-says-anz-macquaries-15m-fine-for-rate-fixing-attempts-is-not-enough-20161206-gt4ws0 How is it that Chew, Hooi, Tan and Loh didn’t face the courts? The whole financial sector is awash with greed, deception and manipulation yet as we saw in the GFC when it is uncovered regulators, prosecutors, and legislators do sfa about weeding out the spivs and shoring up regulations.

    • admin says:

      Jon,

      Unfortunately, it is one law for the rich and one for the poor. You can steal $100 from the till of a servo and face some time in the pokey, but if you give dodgy advice based on your receiving part of the proceeds of the dodgy advice, you walk away scot free. It has to end.

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