Move surprising, until it all made perfect sense

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In common with most Australians, I was somewhat surprised when Malcolm Turnbull announced at his press conference this morning that there would indeed be a royal commission into the banks. The trigger he claimed for this about-face, after steadfastly refusing to even entertain such an inquiry, was a letter from the Big Four to the Treasurer, Scott Morrison, requesting that the Government institute such an inquiry.

However, on reflection, it all started to make perfect sense. Call me old and cynical, but let’s consider more closely the context of the PM’s apparent 180 degree change of direction. The sustained pressure for a royal commission into “the banks”, but essentially the Big Four, where the most egregious behaviour has consistently occurred, has been steadily building.

It shows no sign of going away any time soon. In fact, post the LNP’s disastrous performance in Saturday’s Queensland election and the subsequent realisation by numerous Nationals MPs that they’d be better served by reverting to some product differentiation from their coalition partners, the prospect of at least the necessary two crossing the floor in the House of Representatives next week was looking like a done deal. This would have ensured the motion for a royal commission into the banks would passed the House and presumably the Senate.

Now the PM is a man who’s tenaciously clinging to the top job, so pre-empting this seemingly inevitable further blow to his credibility and authority that would have occurred next week, would seem the best course of action. At the same time, it would disarm Bill Shorten, the Labor Opposition, the Greens and everybody else who’s been lambasting the Government for failing to launch a royal commission.

All that was required was “a letter” from the CEOs and chairmen of the Big Four to provide a face-saving excuse.

As the dust clears over the next few days and the media and Opposition parties dig and delve, the final details of this royal commission should become a great deal clearer.  And, as my old dad was wont to opine whenever confronted by a seemingly uncharacteristic development, “Always ask who benefits”.

Today, there may be more questions than answers, but one thing is certain, next week’s final sitting of Federal Parliament will not be boring!

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Written by David Fallick

25 Comments

Total Comments: 25
  1. 0
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    A good comment from a seasoned veteran. Good to see the wisdom of the years. And even better to note that it is basically free from the heavy left wing bias that usually accompanies comment from Life Choices.

  2. 0
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    Hi David,
    You will recall a couple of weeks ago Scott Morrison called in the four banks to his office. I’ll bet a dime to a dollar that this letter was hatched during those meetings. Whilst Turnbull might have argued against the Royal Commission he doesn’t lose anything out of it. But he kills the potential for a motion from his coalition partners, giving them a small gift of recognition at the same time, removes the satisfaction Labor would get from the debate in Parliament and removes a substantial longer-term headache without any loss of face to his conservatives.
    I call it a master-stroke. Nick

  3. 0
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    Here come the Oracles.

    Big Bad Government for not having a Royal Commission.
    Big Bad Government for having a Royal Commission.

  4. 0
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    David: Is it possible that Turnbull and the big 4 banks have colluded to have a RC which has certain areas off limits as well as not accepting submissions from those with legitimate stories to tell about their experiences?

    I suggest this RC will be show for the cameras. It will be short in duration and will be orchestrated to avoid transparency. I also have a question to ask in regard to where the ACCC and ASIC are in all of this? These organisations have a duty of care to the public but as usual will not weigh. The normal method of operation.

  5. 0
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    The banks are probably sick and tired of the left using them as a political football
    They have nothing to hide so they are supporting an RC
    You are right , the banks will benefit and hopefully than Shorten and the other lefties will shut the f up
    Oh – investors gain too when the report comes out :))

    • 0
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      The banks are not angels. I have business and bank accounts in other countries and let me tell you banking is ‘different’ overseas.

      You can’t claim that banks are being used as a political football but they have defrauded many customers and unnecessarily bankrupted others when there was no need to do so. They knew precisely what they were doing.

      I wouldn’t care if Pauline Hanson had brought on a far ranging inquiry as long as the facts come out, compensation is paid where appropriate and LAWS, yes laws, are put in place in case banks think they can conduct business as usual.

      For the record Raphael I hold bank shares and I an of the opinion that a proper RC, not the one Turnbull is putting up for the cameras, will result in me getting fewer dividends. I accept this as a part of cleaning out the crap employed on bank Boards.

      Scream blue murder all you like. I’d love to know who you are, your past life and who is now paying you.

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      I am not rich . I live on a modest income .
      Was a labor supporter for many years but have become so disillusioned with labor lies and self interest .
      I look at the polices if both parties and their representatives and see only Turnbull and LNP able to lead this country forward .
      Turnbull is a decent man andis doing the right thing by having and RC even though the money is better spent on more important things , but you can blame labor and the greens for that

  6. 0
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    CUI BONO, FOR WHOSE BENEFIT? It all depends on the appointees and their Terms of Reference. We now know who is going to set it all up – the Government of the day. We all know whose interests will be protected.

    Keep a look out for paper tigers with no teeth.

  7. 0
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    CUI BONO, FOR WHOSE BENEFIT? It all depends on the appointees and their Terms of Reference. We now know who is going to set it all up – the Government of the day. We all know whose interests will be protected.

    Keep a look out for paper tigers with no teeth.

    • 0
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      Phil – keep an open mind and you will be pleasantly surprised I think
      Don’t be swayed by the negativity ,this is coming from labor and greens because they are not happy that the RC will show them up for what they are – lying opportunists

  8. 0
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    just read ylc labor representative mick’s earlier comment, while always first of accusing the liberals of hiding their money in overseas accounts to minimise their taxes, he now has confessed of being guilty to the same practice, what a HYPOCRITE this bloke has turned out to be, then again what does anyone expect of a person hiding behind a mask!!!

  9. 0
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    just read ylc labor representative mick’s earlier comment, while always first of accusing the liberals of hiding their money in overseas accounts to minimise their taxes, he now has confessed of being guilty to the same practice, what a HYPOCRITE this bloke has turned out to be, then again what does anyone expect of a person hiding behind a mask!!!

  10. 0
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    just read ylc labor representative mick’s earlier comment, while always first of accusing the liberals of hiding their money in overseas accounts to minimise their taxes, he now has confessed of being guilty to the same practice, what a HYPOCRITE this bloke has turned out to be, then again what does anyone expect of a person hiding behind a mask!!!

    • 0
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      sorry for it being repeated, then again people should be warned against shysters attempting to take over these columns with their warped and self interested views

    • 0
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      sorry for it being repeated, then again people should be warned against shysters attempting to take over these columns with their warped and self interested views

    • 0
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      It’s so obvious Mick is a labor stooge.
      Why bleat and moan about the banks and hen as soon as LNP give them what they want , they reject it before the RC can even begin deliberations
      Answe is simple – their lies will be exposed .
      Wonder how much labor pays Mick for his posts

    • 0
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      MICK is a very sick man mentally and really should have a very very long chat to the Samaritans before it all end in tears for him.
      His hatred is going to destroy him.
      I hear Losec is very good for stomach ulcers MICK.

    • 0
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      MICK is a very sick man mentally and really should have a very very long chat to the Samaritans before it all end in tears for him.
      His hatred is going to destroy him.
      I hear Losec is very good for stomach ulcers MICK.

    • 0
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      MICK is a very sick man mentally and really should have a very very long chat to the Samaritans before it all end in tears for him.
      His hatred is going to destroy him.
      I hear Losec is very good for stomach ulcers MICK.

    • 0
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      What a nasty nest of vipers you blokes are!
      Did you even consider that MICK might have lived and worked overseas, so had every reason to hold overseas accounts?
      I don’t know the true facts of his situation, but you guys are so quick to judge, then criticize and then put the boot in, as if you had all the facts.

      “Judge and ye shall be judged!”

    • 0
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      Aw cmon Janran
      Mick is a silly leftie whinger

      And please stop with your feminist men hating posts – thank you

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