Problem Home Loans - Australia
Banking royal commission: Why banks don't want property lending scrutinised
https://first2move.com.au
Suddenly, the fear has been reversed.
After a fortnight of attempting to whip up alarm with customers, with claims a bank inquiry would force interest rates higher, the boot is on the other foot.
Bank shares took a pounding this morning, as investors took flight, following revelations that, overnight, the big four banks had capitulated and called for the Prime Minister to establish a royal commission into banking.
Faced with the prospect of a parliamentary inquiry, it was a desperate attempt to retain some control over the process and, in particular, exactly what will come under the microscope.
The inquiry Turnbull had to have
The Prime Minister has spent the past 18 months stridently opposing calls for a royal commission into the banks, but in the end resistance was futile, writes political correspondent Louise Yaxley.
But what exactly do they have to fear? What secrets lurk deep within the vaults of our finance sector that have so much potential for damage?
Since the financial crisis, our banks have been subject to a litany of complaints, ranging from market manipulation, overcharging customers, denying legitimate claims, falsifying records and even failing basic standards on statutory responsibilities, such as reporting transactions related to money laundering.
In that time, they have been either fined or forced to compensate customers to the tune of more than $1 billion. Surely, there's nothing more that could top that.
Well, yes, there is.
While our regulators and, for the most part, customers themselves, have launched legal action on individual misdeeds, the broad landscape has been obscured.
What now is apparent is there has been a behavioural shift since financial deregulation in the 1980s, where ethics have been subsumed by the demand for earnings. And it has been achieved primarily through the bonus system.
The more an employee sells, the more they earn. It's a system that guarantees rules will be bent and standards lowered.
(Source: Australian Bureau of Statistics )
https://first2move.com.au
Suddenly, the fear has been reversed.
After a fortnight of attempting to whip up alarm with customers, with claims a bank inquiry would force interest rates higher, the boot is on the other foot.
Bank shares took a pounding this morning, as investors took flight, following revelations that, overnight, the big four banks had capitulated and called for the Prime Minister to establish a royal commission into banking.
Faced with the prospect of a parliamentary inquiry, it was a desperate attempt to retain some control over the process and, in particular, exactly what will come under the microscope.
The inquiry Turnbull had to have
The Prime Minister has spent the past 18 months stridently opposing calls for a royal commission into the banks, but in the end resistance was futile, writes political correspondent Louise Yaxley.
But what exactly do they have to fear? What secrets lurk deep within the vaults of our finance sector that have so much potential for damage?
Since the financial crisis, our banks have been subject to a litany of complaints, ranging from market manipulation, overcharging customers, denying legitimate claims, falsifying records and even failing basic standards on statutory responsibilities, such as reporting transactions related to money laundering.
In that time, they have been either fined or forced to compensate customers to the tune of more than $1 billion. Surely, there's nothing more that could top that.
Well, yes, there is.
While our regulators and, for the most part, customers themselves, have launched legal action on individual misdeeds, the broad landscape has been obscured.
What now is apparent is there has been a behavioural shift since financial deregulation in the 1980s, where ethics have been subsumed by the demand for earnings. And it has been achieved primarily through the bonus system.
The more an employee sells, the more they earn. It's a system that guarantees rules will be bent and standards lowered.
(Source: Australian Bureau of Statistics )
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