As banking standards collapse, a new lobby emerges

Via the AFR:

Behind-the-scenes discussions between banks, regulators and industry associations are continuing to create a new Professional Banking Council that would govern industry-wide standards of professional conduct and competency, as banks brace for more damage to their reputations as the royal commission re-starts in Melbourne.

…The Australian Banking Association has not decided whether it will supportive support the Professional Banking Council. “This is a complex area and there are a wide range of policy options being considered,” said a banking industry source.

Discussions are now being focused on how the new council can be aligned with, and complement, both the regulatory regime, as APRA takes a closer interest in enhancing culture, and banks’ own efforts to improve professionalism through enhanced human resources programs.

Captured regulators enjoying tea with corrupt bankers and failed lobbyists over discussions about how to increase standards. Yeh, that’ll work.

How about we let the Royal Commission determine the crimes, prosecute the guilty and impose standards on the explicitly discredited with the force of law.

Comments

  1. Lisa: Dad, don’t you see you’re abusing your power like all vigilantes? I mean, if you’re the police, who will police the police?
    Homer: I dunno. Coast Guard?

    • “We entertained the possibility of discussing potential legal action against hypothetical fraudulent lenders, but decided it would be in the best interests of the country that such entertainment deviated too far from the accepted norms that it would be best to leave these possibilities to others who are in a far better position to address future actions against institutions should there be justifiable concern that said institutions had partaken in creating outcomes that were not wholly legitimate, given the benefit of hindsight.”

      Will that do?

      • “………..given the benefit of hindsight.”

        lolol….absolute bs, so, no it wouldn’t satisfy me whatsoever. It’s amazing how the “public interest” usually involves allowing those in power to get away with what they do.

        Everything changes and stays the same.

        Edit. I take it you’re being sarcastic.

      • “Lets create another toothless watchdog to oversea the banking industry. This way it looks like we are doing something while we’re doing nothing. If FIRB is anything to go by, we should get away with it for about ten years.”

        – report by an overpaid “consultant” in Canberra.

  2. Lobbying is always going to be a flourishing industry where there is a big government. The return on investment is simply too good to forego.

  3. This new org is like when Lucky Luciano reorganised Cosa Nostra and brought the five families in New York together. So we have the big four banks and well, it’s business, fahhgettaboutit.

  4. This is just a PR exercise to get ahead of everything and try and establish a toothless self-regulatory body so they can avoid any real public oversight.

    • “…establish a toothless self-regulatory body so they can avoid any real public oversight.”

      Aren’t there already a few of those in the banking sphere? Or, am I thinking of toothless government regulatory bodies?

  5. SoMPLSBoyMEMBER: March 2, 2018 Banks are quite happy to NOT be required to provide a ‘duty of care’ but enjoy the misperception that they do.
    http://www.corrs.com.au/publications/tgif/SUPREME-COURT-finds-that-a-bank-does-not-owe-a-duty-of-care-to-investigate-the-financial-circumstances-of-its-debtor/
    Gotti, fool that he is: “it looks like by failing to check those borrower expense levels the banks were undertaking irresponsible lending and therefore breaking the law.
    If the people lose money they may be able to sue the banks!
    The legal firms that specialise in these areas are jubilant. “
    WW that gotti is a threat to economics and should be sacked…Pronto.

  6. “banks’ own efforts to improve professionalism through enhanced human resources programs”

    Yeah right – Just like when I failed an interview at which bank because I said money was not my primary motivation ,Ethical conduct is what matters to me.

  7. Hay Trump wants the SEC to deregulate faster, gut Basel, and remove any thought of fiduciary duty. Where just following the market makers.