Evil Anna pushes to restore mortgage fraud

She’s probably Australia worst public policy sell out. And she’s earning her $600k plus, via Banking Day:

The Australian Banking Association is preparing to push back against ASIC’s plan to make responsible lending guidelines more prescriptive, and will argue for the maintenance of the principles-based approach when the regulator holds public hearings on the issue over the next two weeks.

ABA chief executive Anna Bligh said one of the big lessons of the Hayne royal commission was that financial institutions needed to take the individual needs of customers into account.

“If you want to do that you need flexibility in the guidance,” she said.

“A credit card customer might have had a high-rate card for 10 years, which they have managed with no problems. They might want to switch to a low-rate card but under a strict serviceability assessment they might get knocked back. That is not a good outcome.”

No, it isn’t. But neither is a “principles based” lending regime that already led to a total collapse of principle so extreme that it ended in a royal commission into systemic mortgage fraud, the collapse of household name reputations and an historic correction in house prices.

Evil Anna was at the ABA throughout all of it. Was she locked in the dunny?

Evil Anna needs to have a chat with one Kenneth Hayne:

In his first public statement since handing down the findings of the financial services probe in February, Justice Hayne contrasted the independent and transparent nature of royal commissions against the “opaque” and “skewed” decisions of politicians influenced by those “powerful enough to lobby governments behind closed doors”.

“The increasingly frequent calls for royal commissions in this country cannot, and should not, be dismissed as some passing fad or fashion,” he said.

“Notice how many recent inquiries relate to difficult issues of public policy: how can we, how should we, look after the aged? How can we, how should we, respond to mental health?

“We need to grapple closely with what these calls are telling us about the state of our democratic institutions.

“Trust in all sorts of institutions, governmental and private, has been damaged or destroyed.”

Can it be restored by former politicians turned lobbyists working to restore predatory lending as soon as possible?

The seventh level of banking hell awaits.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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