Momentum for a banking Royal Commission just got a boost with AussieSuper backing the policy – the first institutional shareholder of the Big Four banks to do so. From The Age:
Industry fund major AustralianSuper’s head Ian Silk… said “everybody” recognised there is a need for “substantial change” at the banks.
“I reckon you’ve got to have a pretty sunny view of life to think that the banks are going to change their behaviour and conduct of their own volition, so if there’s going to be an external catalyst for that, such as a royal commission, I’m pretty relaxed about that,” Mr Silk said.
He said there had been a substantial loss of confidence in the financial services sector in recent years, adding that “conflicted remuneration” was often at the heart of poor banking behaviour.
The reasons for a banking Royal Commission are compelling, and include:
- damning evidence of bank manipulation of the bank bill swap rate, which the banks have shown no contrition over;
- the 1000-plus examples whereby borrowers’ loan documentation has been forged by the banks (see here, here, here and here), again with little remorse shown; and
- overall dodgy lending standards.
The corporate regulator, ASIC, has proven utterly inept in investigating and prosecuting these cases, meaning there is little choice but to conduct a Royal Commission into the banks’ practices.
