David Murray’s banking inquiry is coming to ahead and the AFR is reporting that the result are more or less settled:
David Murray’s blueprint for the future of Australia’s financial system is set to call for the big four banks to hold billions of dollars more in equity capital to help them withstand financial crises while accepting the traditional implicit guarantee that they will be bailed out by the government if they fail.
The Australian Financial Review also understands the inquiry report, to be delivered to Treasurer Joe Hockey next month, is unlikely to recommend putting a price on the government’s free deposit guarantee, will not advocate the costly ring-fencing of core banking operations from riskier activities and is unlikely to champion an aggressive unwinding of the major banks’ vertical integration of financial advice, funds management and superannuation.
