Turnbott throws ScoMo another hospital pass

Another day, another hospital pass from Prime Minister Turnbott to Treasurer ScoMo, via the AFR:

Australia’s banks will pay $121 million over the next four years to fund sweeping new powers and resources for the Australian Securities and Investments Commission.

The funding, which puts backs the $120 million the Abbott government took from ASIC in the 2014 budget, will enable the regulator to both respond better to misbehaviour as well as try and head it off in the first place through improved surveillance.

Mr Morrison said he would be “furious” if the banks sought pass this cost onto customers and he had told them so.

“I think it’s easily digestible by the banks and must be and should be and I would be furious if I thought this was being sought to be passed on to the banks and you can be absolutely assured they…would already have got that message from me,” he said.

But the package has failed to appease the Opposition which said the banks will be popping champagne corks.

“We will not let this issue go,” said Labor leader Bill Shorten, confirming banks will be come a political football over the next 10 weeks in the lead-up to the election.

“If just funding ASIC was going to stop the problem we wouldn’t have the problems we’ve got. No, it’s not enough. Asking the regulator to investigate themselves isn’t going to fix anything,” Mr Shorten said.

Mr Morrison said Mr Shorten was “cynically exploiting the concerns and fears of Australians when it comes to how that’s been impacting on their daily lives”.

“He’s politicising their pain and I think this is a reckless way for a Leader of the Opposition to behave who pretends to think that he can be responsible for a $1.6 trillion economy.”

As well, Greg Medcraft, star of The Big Short as founder and head of the American Securisation Forum, as well as the man that oversaw the last few years of banking malfeasance as a failing regulator, hasn’t been fired or demoted or even sanctioned, he’s been rewarded with an 18 month extension to his contract.

Seriously, a Royal Commission versus unscrambling their own egg and begging the banks to not pass on costs? Why can’t the Libs see how weak this looks?

They should have listened to the back-benchers calling for support of Labor’s policy. They should have been stealing Labor’s policies all along, they’re election winners.

Poor old ScoMo is ducking into a career ending coat hanger.

Comments

  1. Greg must have won immunity from all sorts of things to have taken the job in the first place? I doubt there are many that could or would be able to take it on now….

    • I wonder how far back this RC will look. maybe MT is still worried about his involvement with HIH ?

  2. Lol “please don’t pass on”

    Banks will probably just increase variable loan rates by 0.001%pt to cover cost of this and then some

    Cheering

  3. The member for Mossack Fonseca tells strayans to shut up, bend over, and take it real good for the banks.

  4. Yeah watch the banks threaten an anti-mining tax style disinformation campaign is there is even a hint of a royal commission. Not only that but would be interesting to see if the Labs have any trouble getting loans to fund thier election campaign this time round.

    Hey here’s an idea. Didn’t the banks have their staff and lawyers and their accountants on loan to ASIC to make rules and regulations ? Remember no one saw any conflict of interest on that.
    Well maybe the banks can supply their own staff for the Royal commission. Cant see any problem with that.

    • “Didn’t the banks have their staff and lawyers and their accountants on loan to ASIC to make rules and regulations ?”

      That was previously banned but the government is now going to allow it. You seriously couldn’t make this up.

      http://www.crikey.com.au/2016/04/20/government-banking-package-fails-corporate-policing/

      Another area of concern is that ASIC will be freed up from restrictions relating to public service secondment employees from industry, pitched by Morrison and O’Dwyer as better enabling ASIC to go after banks. In fact, such secondments raise very serious concerns about industry capture of the regulator and were the subject of recommendations by the committee in light of the evidence of James Wheeldon, a former ASIC employee.

      • Keane makes a very good point about whisteblower protection but I don’t think either side is putting it forward at the moment.

      • Why would you believe any assurances given by Kelly O’Dwyer in relation to regulation and enforcement?

    • Jumping jack flash

      Agreed.

      Has anyone considered what will be the outcome? The final result?

      Or is it kind of like a dog chasing a car? What will they actually do once they catch it?

      Any attack on the tenuous bank/property symbiosis is likely to result in a debt-deflationary recession, not that I am worried. “Bring it on” I say, but there’s potentially a big problem if they actually act on the result of the RC if it succeeds, whatever the parameters for “success” are defined to be.

      Still, I maintain it is a token gesture to pander to the great outraged until something is found, and something is actually done.
      Good call Labor, whipping up the great outraged is like shooting fish in a barrel.

      Its as clever as Howard’s strategy of throwing money at pensioners.
      They must have actually done some homework while they’ve been out of office.

  5. FiftiesFibroShack

    The banks support it, which shows us all this is a pointless waste of money. Another LNP sell out.

  6. TailorTrashMEMBER

    If the banks have nothing to hide what are they scared of ? A royal commission should be a chance to show their glowing record as economic enablers ,pillars of the community and servers of our great egalitarian Aussie society . Ok ………yes, I know they are a business with shareholders …….profit ,divs and all that …but I suspect those $10 million + salaries of Gail Kelly and Mike Smith et al were “earned ” on some business models that the banks may not feel entirely comfortable getting light shone on. Bring it on Bill !

    • They may not have anything to hide but they can certainly object to the $250m+ it is likely to cost the industry for little gain for anyone.

      • Little gain?

        Only if the banks kill it.

        A Banking Royal Commission can recommend fundamental reforms to the monetary system.

        Eventually there will be no choice so it is just a case of getting ahead of the wave.

      • Unfortunately when it comes to the monetary system – it needs a very large spotlight for an extended period.

        Plus the Murray Inquiry did not really ask the big questions – even if the terms of reference suggested it would

        http://fsi.gov.au/publications/final-report/executive-summary/#chapter5

        “Australia needs strong, independent and accountable regulators to help maintain confidence and trust in the financial system, thereby attracting investment and supporting growth. This requires proactive regulators with the right skills, culture, powers and funding.

        Australia’s regulatory architecture does not need major change; however, the Inquiry has made recommendations to improve the current arrangements. Government currently lacks a regular process that allows it to assess the overall performance of financial regulators. Regulators’ funding arrangements and enforcement tools have some significant weaknesses, particularly in the case of ASIC. In addition, it is not clear whether adequate consideration is currently given to competition and efficiency in designing and applying regulation.

        The Inquiry’s recommendations to refine Australia’s regulatory system and keep it fit for purpose aim to:

        Improve the accountability framework governing Australia’s financial sector regulators by establishing a new Financial Regulator Assessment Board to review their performance annually.
        Ensure Australia’s regulators have the funding, skills and regulatory tools to deliver their mandates effectively.
        Rebalance the regulatory focus towards competition by including an explicit requirement to consider competition in ASIC’s mandate and conduct three-yearly external reviews of the state of competition.
        Improve the process for implementing new financial regulations.
        These recommendations seek to make Australia’s financial regulators more effective, adaptable and accountable.”

  7. I think I will make a submission into the RBA Securency scandal and Glenn Stevens involvement.

  8. ScoMo honestly believes god is on his side and wants him and his mates to be rich.

    The downside to this whole scenario is massive. You have true believers running the country into a once in a century terms of trade collapse, capex cliff, and manufacturing collapse during the largest speculative land bubble ever.

    There is basically no overstating how absolutely stuffed you are. Australians are going to eat each other. Bloody glad I escaped. Enjoy the next few years!

    • bolstroodMEMBER

      “Bloody glad I escaped.”
      To where? The USA?
      Are you sure”escaped” is the right word?
      “Out of frying pan into fire “.is more like it.
      If the USA survives the presidential election without 1960’s style civil unrest, or worse, I will believe you “escaped”.

      • Australian exceptionalists need some schadenfreude.

        Get a grip, folks. The US in a lot of ways is better off than Australia at the moment. Australia might have been a better place to live in much of the recent past, but arguably it isn’t now. Live with it.

      • What Kodiak said. The USA has had a dose of reality in the last decade. Australia’s is still coming, and the Australian exceptionalism on display here will only worsen it.

        A force-feeding of humble pie is in your not too distant future. And I will be laughing at you as it is delivered. Ha ha ha ha ha!

      • bolstroodMEMBER

        It is the 400,000,000 weapons in the hands of theUS populace that will make the difference.

      • If anything the US population is still far too docile, especially in light of the scale of the GFC swindle and the evaporating middle class.

        People like you had your chance at schadenfreude when the WTC went down. I know that because I watched the ABC/ Fairfax orgy when it happened.

        The shoe’s on the other foot now, sport.

    • “There is basically no overstating how absolutely stuffed you are. Australians are going to eat each other. Bloody glad I escaped. Enjoy the next few years! ”

      I’d sooner be eaten (metaphorically at least) by an Australian than some dumb Yank.
      You ain’t escaped moron -you’re a prisoner. ha ha ha ha ah

      • Somehow you’re not very convincing. Australian exceptionalism is pretty sad really. Enjoy the next 3 years in Oz!

      • When I lived in Australia for the first time in 1994, I had escaped the USA’s dumb bubble for the first time and was a bit shocked. There’s no doubt in my mind that Australians since that time have become utterly obsessed and delusional to the point of taking the title “dumbest c*nts in the world”. AuRulz! hasn’t got the memo yet. Perhaps it’s his internet service.

      • kodiak: No doubt in my mind that Oz was the better country to live in in the 80’s, 90’s, and early noughties. However, since then, Australians collectively haven’t made a single good decision.

        The US went collectively bonkers from 2001 to about 2008. They have since recovered. Australia is currently in the midst of collective insanity, and won’t recover until the consequences are fully felt. The Australian exceptionalism on display in this thread only supports this idea.

      • When I was here in 1994 I had come from a US Uni, living in a shitty neighborhood. The culture of violence was at its peak. NYC was still a shithole. People my age were completely nihilistic. There was no doubt that I had found paradise in Melbourne and I didn’t want to go back. Melbourne is now a ridiculously overpriced, congested shithole. The people are more arrogant, materialistic, precious, and aggro than anything that I ever experienced in the US, yet they need to keep reinforcing the idea to each other that everything’s still apples. It makes me sad. But I think that it will mean revert eventually.

      • @kodiak
        If there’s anything more annoying than a ‘whinging Pom’ it’s definitely a ‘Whining Yank’

        PS – what you said in general (especially about the people) about Melbourne is pure spiteful BS !
        While travelling around Australia 2 years ago we spent 3 mths living in South Bank & thought the people & facilities -transport -markets etc were wonderful & World class. No shit hole in the USA could match.

      • Spite has nothing to do with it. Melburnians are humorless, mannerless burb-bots. They are unnecessarily aggressive pseudo-intellectual pricks. Nothing in Melbourne is world-class except for a cup of coffee. Congratulations, douche.

        What’s even funnier than the Yank/ Pom stereotypes is the self-worshipping mythology about Aussies being self-effacing and humble. It couldn’t be further from the truth.

      • OzRoolz confirms that Australian exceptionalists are the douches we all knew they were. Ranting about how Australians are so much better than all those ‘dumb Yanks’… Pathetic, is what it is. The USA is easily the most diverse country on Earth, and all the ‘Australia, love it or leave it’ crowd have is the lamest stereotyping ever. OzRoolz sound like American Hicks hating on Europeans, except he’s more irrelevant.

        Prejudiced wilfully blind fools are such exceptionalists. It’s a brain disease in Oz. It is going to be absolutely hilarious watching Australians blame everyone but themselves in the imminent Australian depression. The mindset of the exceptionalist is to believe that he (and by extension everyone like him) is a very special clever snowflake who can do no wrong. It’s hubris, plain and simple, and hubris always leads to a downfall.

        And as for ScoMo’s theatrical display of bank defiance… it’s meaningless theatre; the chances that the LNP will do anything to lower bank profits is zero. Everyone knows it.

  9. Morrison: “Don’t pass on these costs!”
    Banks: “Or what?”
    Morrison: “…….”
    Banks: “I see. We shall be passing on these costs then”
    Morrison: “I’m furious”
    Banks: “OK”

    • The user pays costs have been described as a “tax” in some reports. Although I doubt it would be the case, if it is really just an additional company tax surcharge (creating franking credits) it won’t really have a cost at all.

    • proofreadersMEMBER

      And so thereby ScoMo should have had a “light bulb” moment and realised why a Royal Commission is absolutely needed, but …

  10. What’s even funnier than the Yank/ Pom stereotypes is the self-worshipping mythology about Aussies being self-effacing and humble. It couldn’t be further from the truth.

    Spot on. Zodiak. It amazes me how exceptional we aussie s think we are in our over priced shit holes with nice beaches.

  11. Kelly O’Dwyer talking about a “regulatory crackdown” using “advanced data-matching”
    I am having flashbacks

    • Perhaps if the coming depression is bad enough for long enough, Australia will have people run for office who are actually capable of doing stuff and being effective, unlike the current cohort of utterly useless career apparatchiks who have never achieved a damn thing.

      Of course, Australians would actually have to vote for them, which seems unlikely given that Oz party loyalty is basically akin to footy team loyalty.

      Why anyone would expect that a do-nothing ex lawyer ex banker (O’dwyer) would be effective at anything is beyond me. Political parties are infested with these useless ladder climbers.

  12. bolstroodMEMBER

    @ Kodiak
    This observer was shocked to the core at the bringing down of the twin towers,I was appalled at the death and destruction I wept for the courageous Fire fighters and Police officers who ran in to the buildings to save people , only to have the whole lot come down on them. I hope that one day the perpurtraitors are brought to justice.
    The USA seems to be a country on the brink of social, political, economic and climate turmoil.
    ( Zero Hedge, The Automatic Earth, Jim Rickards, the Arch Druid Report.)
    Throw in the number of weapons in the hands of the population and I am glad to be in Australia.
    Not that we are going to be spared the Depression ,that seems to be a given for the world economy.

    • There was a huge amount of schadenfreude coming from the Australian left.

      You read a few crash sites and think that you have insight? Australia is in worse shape than the USA right now. Believe it.

      • No way. I’ve been waiting for years for this. It’s going to be fun to watch the hubris flogged out of every last one of you knobs.