RBA and Treasury greenlight predatory lending

Via the AFR:

The Australian Securities and Investments Commission has decided not to appeal to the High Court its case against Westpac for alleged responsible lending failures, after the heads of the Reserve Bank of Australia and Treasury both privately warned it would exacerbate economic uncertainty caused by COVID-19.

Sources told The Australian Financial Review ASIC’s leadership group met for several hours last Friday and on Monday, with an overwhelming majority of ASIC commissioners voting against appealing the so-called “shiraz and wagyu” case it has lost twice in the Federal Court.

Instead, ASIC plans to write to Treasurer Josh Frydenberg recommending reforming the credit laws to clarify how responsible lending operates in the future.

No HEM reform then.

I don’t think it will matter. The bubble managers are out of bullets.

David Llewellyn-Smith

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