ASIC declares war on corrupt RBA and Treasury

And good on it, at Domainfax:

Australian Securities and Investments Commission boss James Shipton has called for a radical increase in the regulator’s funding and slammed delays to legislation that will dramatically increase penalties against business crooks.

Appearing at a parliamentary hearing in Canberra, Mr Shipton made his strongest speech since being appointed to the top job at the regulator last year.

Mr Shipton told the hearing that the stalled legislation to increase corporate penalties by up to 10 times was essential for ASIC to be able to do its job properly.

The new laws will make it possible to jail perps for ten years and fine firms $210m.

Of course the corrupt RBA and captured Treasury are dead against it:

The Reserve Bank of Australia and Treasury have privately cautioned the Morrison government that any regulatory response to the financial services Royal Commission must be careful to avoid putting the brakes on lending to home buyers and business.

The Australian Council of Financial Regulators must be an interesting place right now…

Comments

  1. Don’t worry.
    The RBA is ‘monitoring’ the situation.

    And on every second Tuesday and sometimes on Thursday mornings, they monitor the situation ‘closely’.

  2. This guy is going to miss out on his post appointment cushy job with a SE Asian regulator on old school expat benefits. Silly boy.

    • C.M.BurnsMEMBER

      or he is trying to ensure that he doesnt get named in the inevitable class action against regulators and those execs that ran them during the worst of the bubble excess

  3. proofreadersMEMBER

    “The Australian Council of Financial Regulators must be an interesting place right now…”

    Yep – focus is on opinions as to the latest Grange release.

  4. Does anyone remember the dominate economic template and its complete refusal to consider the term fraud, especial considering the concocted ideology behind it all.

  5. Here lets just unpack the above a bit more for those not familiar with the topic….

    Concept

    “The concept of control fraud is based on the observation that the CEO of a company is uniquely placed to remove the checks and balances on fraud within a company such as through the use of selective hiring and firing. These tactics can position the executive in a way that allows him or her to engage in accountancy fraud and embezzle money, hide shortfalls or otherwise defraud investors, shareholders, or the public at large. A control fraud will often obtain “investments that have no readily ascertainable market value”,[1] and then shop for appraisers that will assign unrealistically high values and auditing firms that will bless the fraudulent accounting statements.[2]

    Some control frauds are reactive in the sense that they turn to fraud only after concluding that the business will fail.[3] Opportunistic control frauds, by contrast, are attracted to a criminogenic environment where it is harder to detect fraud, e.g., as a result of deregulation.[4]”

    https://en.wikipedia.org/wiki/Control_fraud

  6. All they need to do is put the brakes on speculative home buying i.e. axe negative gearing and CGT concessions, and give ordinary tax payers BIG tax cuts that will act as a wage increase to stimulate consumer spending. Very simple.