CBA takes the piss on reform

Via the AFR:

Commonwealth Bank has completed only one of 153 tasks it needs to satisfy in order to meet recommendations that flowed from APRA’s special inquiry into its governance, culture and accountability.

CBA had submitted evidence of another eight tasks completed from the list of 153. However, the bank missed the August 31 deadline and therefore could not be included in the report as complete and effective. CBA was aiming to complete nine tasks by the deadline.

The independent consultant behind the report has commended the bank for its progress, however it has also warned it not to get complacent or risk undoing the progress that has already been made.

Enough said.

Comments

  1. “The independent consultant behind the report has commended the bank for its progress, however it has also warned it not to get complacent or risk undoing the progress that has already been made.” – ha ha ha

    • Consultants are typically paid by the hour. They have a vested interest in making things last as long as possible. The consultant is also probably paid by CBA, so won’t say anything bad.

  2. I am sure there are plenty of other more interesting things than pesky compliance to be getting on with. These are our innovators and business leaders, not some lowly box ticking bureaucrats. Creativity, the quality of which there is a strong track record, cannot flourish properly in an environment with petty issues like completing an arbitrary list of 153 tasks. The consultant was correct to commend the bank for the progress that has been made.

  3. just_the_pipMEMBER

    I was speaking to a consultant from one of the Big 4 accounting firms that is conducting an internal audit at my company this week and he mentioned some depressingly predictable things going on in the banks right now. He said that almost all his audit and assurance work at the moment is with the Big 4 banks and even he has taken aback at their attitude to reform and compliance in the face the RC.
    He has sat in meetings where bank staff have essentially said “we don’t really have to do (insert compliance/governance recommendation here) this because its not like APRA can shut us down. This is just to be seen to be doing the right thing”. A friend who works in regulation with another bank is seeing regulatory compliance projects getting cut….
    Taking the piss indeed.

    • As sad as it is predictable. And so it will be until the banks, and the responsible individuals among their staff, are held accountable. Massive fines that are greater than the gains made to frighten the shareholders, accompanied with jail time for the responsible parties. I’d prefer for the jail time to be spent among the general prison population, though given how damaging their actions were they could be considered a menace to society and need to spend time in high security.

      • The banks are virtually untouchable and they know it — bank credit is what gives life to the economy (for better or for worse) and the Govt relies on banks to deliver the gift of leverage to the economy. Hobbled banks spells huge trouble.

  4. Jumping jack flash

    What exactly can they do if they drag their feet?
    Fines?
    Shut them down?

    Nothing they can do will scare them.
    Feet will be dragged.
    Piss will be taken

    • Nationalise them.

      The down payments were made through quantitative easing.

      The government almost owns them already.

  5. When will white collar criminals go to jail?

    That’s the only way to change this behaviour.