Opinion: What you won’t be told in the royal commission's final report

What you won’t read in the final report of the banking royal commission on Monday is legendary.

What you won’t be told in the royal commission final report

What you won’t read in the final report of the banking royal commission on Monday is legendary.

This is not in any way to underestimate the very fine job that commissioner Kenneth Hayne and his terrier senior counsellors have done.

But in this very personal opinion piece, I feel it is about time we spoke plainly about the likely findings and the probable repercussions.

There are four main takeaways from this commission and its findings: it was too short; the major miscreant, the government, will get off scot free; heads should roll, but probably won’t, and the little guy will continue to pay far too much for poor financial services.

How do I know this before the final report comes though? Because I don’t believe the fundamental illegal practices of our major financial institutions have changed much over the past 15 years. Let’s look at the above points and consider why.

The scope of the commission
Commissioner Hayne was never given enough time or resources to do a proper job. Then treasurer, Scott Morrison, resisted the call for this commission until he and former prime minister Malcolm Turnbull could no longer withstand pressure both within and outside Parliament. Given the Turnbull Government was dragged kicking and screaming to this commission, it set a totally unreasonable time limit, which meant that very few ‘real’ people could take to the stand with evidence as victims of criminal financial practices. Note I do not say ‘misconduct’ or ‘misbehaviours’. We are dealing with white collar crime here.

Worst offender overall = Federal Government
We will learn on Monday that financial regulatory bodies ASIC and APRA were too soft on the banks and financial institutions, such as AMP, which basically ignored their fiduciary duties and went hell for leather for profit. It is quite possible that some bank executives will face criminal charges.

But who should ensure the rules are obeyed? The regulators. Who runs the regulators? The Federal Government.

For years ASIC in particular has been using ‘enforceable undertakings’ to supposedly punish the financial organisations that broke the law. The result is that these institutions pay a token fine to charities and then treat it as a tax deduction. The regulators have not been ‘missing in action’ – they have fundamentally failed to do their job. And ultimately, the government of the day is responsible for this failure. This applies to the current government, whoever is PM, and previous Labor governments. ASIC and APRA need their own royal commission – or should be dissolved and a new, more effective financial regulator established in their place.

There are warnings today in the Fairfax media from Scott Morrison that the findings must not create an electoral battlefield. And that the worst thing of all would be if the flow of credit was to be compromised as a result of the commission.

He still doesn’t get it, does he?

His (and previous) governments are charged with managing financial regulations – it’s not that hard is it? Obey the rules banks, obey the rules. And if they don’t, they need to be taken to the cleaners on behalf of all the Janes and Johns whose savings are depleted because banks broke the rules.

So here’s to a government – any government – that can own up to this responsibility and protect all of us from the greed and avarice of people on million-dollar bonuses.

Do you think that ASIC and APRA need a royal commission? Are you confident that the finding of the banking royal commission will lead to appropriate action taken against banks and their ilk?

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    COMMENTS

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    Charlie
    1st Feb 2019
    10:45am
    Should have quit after I read the meat ball recipe
    Kaye Fallick
    1st Feb 2019
    11:05am
    Gosh thanks Charlie - I took some time to write this opinion piece -but hope you enjoy Stephanie's meatball! What do YOU think about the Hayne royal commission? We would love to hear, warmest Kaye
    maelcolium
    1st Feb 2019
    11:34am
    You sound like a meat ball Charlie. Do you take interest in anything except what you shove in your mouth?
    Wstaton
    1st Feb 2019
    11:44am
    Hmm.. Typical intellectual response Charlie.

    Just the sort our current government gives when someone points out the failings in our system.

    Same happened when the the SA Murray Darling commissions report was issued. It was poo hooed. Tell that to all the millions of fish that have now died.

    Tell all the people that were crunched by the financial institutions.

    All that we want is that the regulatory authorities do their job which they do not appear to be doing.

    So their may be an initial hiccup if they did do there job but by not doing it a much bigger hiccup occurs later on. Pity the fish, pity the growers further downstream. Pity the people who lost their savings, houses, farms and a lot more. Dismissed by you preferring meatballs.
    Misty
    1st Feb 2019
    3:32pm
    Did you even like the recipe Charlie?.
    bluewest
    2nd Feb 2019
    5:57pm
    I don't think the term was too short at all. It is obvious the banks are having trouble coping with the swift pace of reforms placed on them over recent years. Why listen to more complaints that relate to times past when all the banks current managers can do is apologise and point out that they have moved on? Pass me another meatball Charlie.
    Wstaton
    2nd Feb 2019
    10:33pm
    I think some people here are blind to what the banks and other financial institutions have been doing.

    Is it me being blind that for example the AMP was charging for services not given, charging the same for people who were dead. This was just one thing.
    Karl Marx
    1st Feb 2019
    11:09am
    Doesn't surprise me about this or previous government's protection of the banks. It's all part of the top end of town doing what they want for profit no matter how criminal it is.
    The current PM fought tooth & nail opposing any RC into banks & financial institutions until the pressure from his own LNP got to much & he had to submit.
    Australia is ranked 13th on the corruption list way down from NZ who are 2nd that was released on Tuesday. NZ have ranked 2nd or 1st constantly for a number of years now where Australia languishes 12 or more positions below consistently & also dropping on the points system. Shame Australia, this government needs to go as it’s obvious that they are encouraging corruption by not addressing it. Shame shame shame.
    Anonymous
    1st Feb 2019
    11:29am
    Usual load of crap from a leftie 1984, why would you worry about the bank your on the pension.
    maelcolium
    1st Feb 2019
    11:36am
    Yes 1984 you are correct and questions need to be put to the Ministers who resisted the RC. Ignore Robbo - he has nothing intelligent to say.
    Karl Marx
    1st Feb 2019
    11:49am
    Maelcolium, I do ignore him as he constantly attacks me personally but I won't lower myself to the sewers so I never reply to his personal derogatory comments.
    TREBOR
    1st Feb 2019
    3:12pm
    Criminals running around and a society that seeks to label anyone not 'of the top kind' a criminal... talk about a backward, primitive society society based on the 'cops and robbers' of the convict colony startup.... there's a book in it... at the moment I just don't have the time, but a good start is to look at what passes for the Rule of Law these days as opposed to legislation, law as practiced, and then regulation. which functions as law but outside of law.... then a look at the star chamber that are proliferating.... the kinds of laws that automatically create of people criminals for what were everyday things... the one-sided 'laws' and such .... the the demands for separate treatment under law (Apartheid) by the feminists and the Indigenous radicals and certain religious groups and such.

    All clear signs of a despotic and unbalanced society in the making..... and on in which any person can suddenly become a 'criminal' and lose rights and entitlements under our so-called democratic society.
    Misty
    1st Feb 2019
    3:35pm
    Robbo is, or was, maybe one of those earning millions in bonuses, a bank CEO maybe?, why else would you stick up for them?.
    maelcolium
    1st Feb 2019
    11:32am
    ASIC and APRA are clearly at fault. Both regulators pay their executives on a bonus scheme which is at the heart of malpractice by bank staff, where self interest is pursued over fiduciary responsibility. The Government is their employer so they carry the can.

    Even the front line staff are paid on bonus schemes, so the culture of self interest is spread throughout the entire organisations from the CEO down to frontline staff. I have read that even Board members of banks get to enjoy the largesse with free trips and executive travel thrown in for Board meetings in exotic locations. Give me a break!

    The corruption of the financial industry is a driver of inequality as shareholders, executives and Boards direct monetary resources to their pockets while real wages have not increased for over a decade. And the Governments are no better. They have constructed a Public Service structure where the fat cats are getting more than Ministers and share in the Future Fund Pensions which are so far from what ordinary people cab achieve aver a lifetime it is obscene. And the polity and elites then wonder why people are angry.

    I think Australia is not too far behind the Gilet movement so the elites better start taking notice before the mob becomes violent.

    And lets not forget the privatisation of Australia's pension system by those idiots Hawke and Keating to the point where the rich are getting richer at a rates of knots that ordinary people can only shake their heads at - what a bloody rort. This was the driver for this whole mess and they should be brought to account for creating it.
    TREBOR
    1st Feb 2019
    3:15pm
    Hearkens back to what I've been opposing for decades now - the dilution of the senior public service by using 'contracted employees' of the government of the day..... thus destroying the much lauded 'independence' of the PS and the much honoured in the abuse 'separation of powers' within a democracy.

    Blame Adolph Howard and to a lesser extent Jozef Keating...

    Beware of freaks bearing grift........
    Rae
    2nd Feb 2019
    8:29am
    Iceland had the right idea. The put their bankers in prison, confiscated all their assets and Nationalised their banks. All fixed now. Well done Vikings. They didn't muck around.
    koshka
    1st Feb 2019
    11:36am
    Free market, neo-liberalism and the like is the root of all this blind inhumane materialism which makes morality a thing to ignore. Our governors are responsible for all our financial, social and health suffering.
    GeorgeM
    1st Feb 2019
    11:44am
    Good summary from Kaye. ASIC and APRA need to be fully restructured, and a new structure with powers (and reporting on it's use or not) strong enough to take direct action. Without pussy footing.

    Regarding "...the greed and avarice of people on million-dollar bonuses.", it is time for Govts to take the hard road - Stop the Greed Factor! How? Limit maximum CEO Salary to $1 Million (even Gerry Harvey said no more was needed). Any Bonus should be max 20% and based on KPIs to be including at least 50% for Customer Satisfaction based on Independent surveys not by the Bank.
    BrianP
    1st Feb 2019
    12:27pm
    We have already reached the stage where governments are influenced by big corporations more than by the nations people. Even Royal Commissions are not effective in reversing this. Not when a government can still control the Commissions outcomes (conflict of interest).

    More radical changes in politics and the system of government are needed. If this does not happen we can expect the following repercussions. Less personal freedom. Lower standards of health care for lower to middle income families. More corruption. Less accountability of government. Worsening living conditions for most people. Less justice.

    This is only the tip of the iceberg. Question is as always - When are we going to DO something to improve the faults in the system of government?
    TREBOR
    1st Feb 2019
    3:21pm
    we are on the same page of theory - not sure if you are fully immersed in this current move to a Controlled Society of lords and serfs... many out here actually live and have lived it.... our 'lived experience' (pardon me for using a feminist type term - gags) overbears any theoretical approach.

    Been saying for years that despite some of the allegations against me for being 'conservative' - I am THE most radical person today - for good reasons... and I believe my views represent the Silenced Majority - those who have no voice to speak or have had that voice taken from them by abusive legislation, regulation and usage of 'law' (an extension of civil war by other means) etc.

    Once you realise how dire this conflict is and what it actually does to ordinary people - your eyes will open. Not sure if I'd call it a 'class war' - those on the current 'cops' side have zero class.....
    Drewbie
    1st Feb 2019
    12:42pm
    Ms. Kaye Fallick:

    I'll be blunt lassie; your opinion piece is oh so abso-bloody-lutely very well done. I enjoyed it so much I actually read it out loud to myself, hehe.

    Correct! The Commission was not long enough, should've been given full investigative scope, subpoena powers & term length it truly deserved to leave " no stone unturned". Nor should " any " relevant Government Minister, Parliamentary Secretary or bureaucrat boffin been exempted from being called to appear & answer truthfully as required.

    Your four main points are exactly what requires " full & ruthless implementation " no matter the cost. Any Government State or Federal is there to " S. T. P. P. " ( Serve The People . . . . Period ). No squirming or little piggy squealing out of their obligations allowed.

    In my view, SCOMO is criminally liable as he set the outrageous limitations on the Haynes R C from the outset, & should suffer the consequences accordingly along with Rhodes Scholar Malcolm Turnbull.

    Only " when, not if " we get a Federal Government with the actual balls to implement, come hell, king tides or obscenely negative opinion polls all of your above points . . . " To The Letter " shall the general populace have greater confidence in it & subsequent economic booms & busts of humongous magnitudes be mostly consigned to the annals of history.

    Best regards for 2019 Kaye.
    TREBOR
    1st Feb 2019
    3:22pm
    Hear, hear!
    Old Geezer
    1st Feb 2019
    1:02pm
    So ends the witch hunt. now we can get back to normal business.
    Karl Marx
    1st Feb 2019
    2:06pm
    why was it a witch hunt?
    TREBOR
    1st Feb 2019
    3:22pm
    How is it a witch hunt? You sound like Big Toe sometimes with your short-liners meaning nothing....
    Misty
    1st Feb 2019
    3:45pm
    And where have you been lately Og?, we miss your Right Wing B..l S..t comments, but Lothario thinks he is doing a good job in your absence, although he doesn't have your manners so maybe you could give him a lesson or 2.
    Not a Bludger
    1st Feb 2019
    1:14pm
    What a self-opinionated opinion piece viz Kaye Fallick is smarter than and knows more than the Royal Commissioner.
    And, smartest of all, not a shred of fact or evidence to support her bizarre opinions.
    See it for what it is - just another leftie attack on big banks, government and by implication, big business.
    Don’t know why YLC supports such drivel - but then it has acknowledged its support for Getup.
    Karl Marx
    1st Feb 2019
    2:06pm
    total rubbish, open your eyes.
    Misty
    1st Feb 2019
    3:51pm
    Not a Bludger are you a banker or CEO of a financial organisation?, because they and this government would be the only ones who would not have wanted this RC in the first place. Pull your head out of the sand and face reality, go talk to all those people whose lives have been destroyed by these banks, the families who have lost their homes for eg.
    Anonymous
    1st Feb 2019
    3:56pm
    The RC was a socialist witch hunt which only proved there wasn’t wrong doing of any note
    Mostly small stuff which the has by and large already been addressed
    Talk about using a sledgehammer to kill an ant - what a waste of $millions
    Agree with Not a Bludger , people shouldn’t comment on what they know very little about or to push their leftie agendas
    TREBOR
    1st Feb 2019
    4:11pm
    Lessee now.. 'socialist witch hunt'... 'socialist witch hunt'... hmmm .... a 'right' wing government of the day decides, finally and under great pressure, to have a look at what countless people (the 'social' side of socialist) have known and demanded for years - the results are totally negative to the institutions under scrutiny - so yes, in some ways, like any genuine society of the people, for the people and by the people (hereinafter to be labeled Democracy as we know it), this Royal Commission was 'socialist' in that it looked at the very real concerns of and impacts on PEOPLE - but not a witch was found or even sought.. well.. maybe one - who was that dopey sheila at the top of one of those banking feed troughs? And where are the wizards caught out? None of them could run a corner shop without the brute force of cash and government compliance they enjoy.... like any true Mafia...
    Anonymous
    2nd Feb 2019
    6:01pm
    i will wait to see the final report myself before passing judgement!
    Misty
    2nd Feb 2019
    6:39pm
    Good luck with that idea ardnher, do you honestly think this govt will release all the RC findings?,
    Anonymous
    3rd Feb 2019
    8:07pm
    Getup are repulsive and repugnant and very bad for Australia. The Nets senator wacca Williams has been after the banks for nearly 20 years - there bad behaviours goes back at least that long

    1st Feb 2019
    1:21pm
    ASIC and APRA have been allowed to be autonomous with little to no oversight. Where governments have been wrong is by allowing the regulators to be answerable to nobody. Any inquiry into their practices have been merely window dressing with the heads being put before committees with standard questions and no follow up on answers given nor proof demanded to support answers.
    Karl Marx
    1st Feb 2019
    2:08pm
    They should of been answerable to the government, but this government & the previous ALP have no bollocks & turned a blind eye.
    TREBOR
    1st Feb 2019
    3:24pm
    Who guards the guards while the guards guard you? Who watches the watchman who watches the walls at night to prevent intrusion and crime?

    My friend, we live in a world that has walls... maybe some of those protected so mightily by those walls should stand a watch for a change and learn what it's like.

    Perhaps a stint on the chain gang?
    Anonymous
    1st Feb 2019
    5:40pm
    Yes, Bob, all we need is a few good men.
    TREBOR
    1st Feb 2019
    6:08pm
    .. who can handle the truth (snuckles)....
    Rae
    2nd Feb 2019
    8:52am
    Try getting an answer.

    I want to know if mortgage offsets are included with deposits, hybrids, bonds and shares in the APRA Bail In Legislation and nobody seems to know.

    Let's hope there isn't another banking crisis because when the money goes missing there will be screaming going on about how this was allowed to happen.

    Why the secrecy and who is actually running APRA and ASIC?

    1st Feb 2019
    1:47pm
    Why should this current government be blamed .
    Why not blame labor as well ?and Scott Morrison is 100% right
    We don’t want a over reaction that will tank the market with a credit crunch
    The minor issues that the RC uncovered have all been dealt with adequately
    Karl Marx
    1st Feb 2019
    2:59pm
    Both LNP & ALP are to blame. Morrison fought tooth & nail to stop any form of RC then restricted the process.
    What do you call an over reaction, being held accountable & being made to comply to rules & regulations that were totally ignored. The banks kept saying they self regulate so all is fine, rubbish wasn't it. Self regulation DOES NOT work in any industry or institution.
    The issues uncovered were not minor but major issues finding corrupt & criminal behaviour that was manufactured from the very top & supported by the governments of the day by their complete inaction.
    And no, they haven't been dealt with adequately, but hopefully they will be including tighter scrutiny & heavy penalties (individual & corporate) for those that want to flaunt the rules.
    Lets see if Morrison has the balls to act on the recommendations & enforce the rules & let's hope that any future government also does the same.
    TREBOR
    1st Feb 2019
    3:25pm
    I see your reading is on a par with your intellectual capacity, Loathie... re-read... then discuss.
    Wstaton
    1st Feb 2019
    3:30pm
    Now here we are, we are now calling them minor issues. Now we are calling not to blame because Labor didn't do anything. How the heck can they be called blameless for something they allowed to continue for the two terms they have been in government.

    This is like a neighbour being seen bashing his wife by a next door neighbour and doing nothing about it. A new next door neighbour seeing the same thing and doing nothing about it.

    Some peoples logic is astounding.
    Misty
    1st Feb 2019
    3:59pm
    Lothario Bob Katter has linked the bank behaviour to farm suicides, you call that a minor issue?, shame on you.
    Anonymous
    1st Feb 2019
    4:17pm
    The only link between you and Katter , both nutters
    TREBOR
    1st Feb 2019
    5:06pm
    Just because he talks and looks like a hick, doesn't mean he is a hick... not you, Loathie...
    Misty
    1st Feb 2019
    11:18pm
    I wouldn't insult a hick by calling Lothario by that name.
    floss
    1st Feb 2019
    2:09pm
    God help Australia because our Federal Government can't.They have only been in power for two terms and the country is stuffed.
    Anonymous
    1st Feb 2019
    2:38pm
    Hey Flossie you reckon Billy Shorten and his hopeless lot of followers are going to save us all

    Remember he was an assistant to Julia the worst prime minister ever or I did forget about Rudd.
    Karl Marx
    1st Feb 2019
    3:01pm
    No you forgot about Abbott as the worst PM.
    Anonymous
    1st Feb 2019
    3:34pm
    Well you would say that 1984 he certainly hammered you pensioners and rightly so you get far too much, maybe if Billy and his mob get in he will put pensioners on food stamps?
    TREBOR
    1st Feb 2019
    3:36pm
    Robbo - baseless conjecture as opposed to hard fact ..... to quote that Malbidishu comedian - how do you KNOW Billy Shorten and The Hopeless Lot (Australian tour 2019 - XXXX) will not 'save us all'?

    I don't think they will 'save us all', either - but they may improve some things while making others worse with their ideological stance and their stacked branches filled with feminists and their lapdogs.

    I'm sick and tired of being forced to accept party ideological garbage in return for a few small benefits..... better to just halt the nation where it is right ow and hold a genuine round table discussion including all interest groups including the Silenced Majority instead of racing ahead with more special interest group insanity to the detriment of the main stream (again and again).
    ex PS
    7th Feb 2019
    1:25pm
    Robbo, you have obviously forgotten about Tony the Rabbit. Labor may not be able to save us, maybe the Libs have already done too much damage, but they sure as hell won't do what the Libs did and protect the ones who are screwing us into the ground.
    I agree with TREBOR, we need ideas and planning not tired old recycled party ideology. I have seen how bad the Libs are, I am not interested in fairy stories about how bad someone else may be, I am more interested in proven performance and so far the current mob have proven to be a dud.
    floss
    1st Feb 2019
    2:12pm
    Back under your rock Still a Bludger,what planet are you on.
    Waiting to retire at 70
    1st Feb 2019
    2:19pm
    Yellow vest anyone?
    Karl Marx
    1st Feb 2019
    3:02pm
    Already have mine
    mogo51
    1st Feb 2019
    2:58pm
    I agree that the resistance by Libs to announce a Royal Commission was appalling. The Commission has done a great job and now a body with actual powers to prosecute should be put in place. Not more Royal Commissions, they are expensive and take too long. The only ones that benefit are the leeches they call lawyers.
    The Country needs to stop throwing money away like it is confetti, which it will be unless we do something to change the way Governments act. Its time to drop the bomb on the majors and we can all do that by voting Independent in May.
    Whilst that may not be a perfect solution, it is at least a solution to being served up with more of the same. If Labor wins, it will be worse. Let's all wake up and smell the roses.
    Wstaton
    1st Feb 2019
    3:17pm
    Well we certainly know now why they resisted a royal commission. Unfortunately they hamstrung it somewhat by setting there terms of reference on what they could do. This to me makes them still complicit.

    The same thing with the SA RC. They took it to court to stop it from calling Federal people to attend. Why did they have something to hide?
    Misty
    1st Feb 2019
    4:02pm
    Voting Independent will still get you either Labor or the Coalition.
    Anonymous
    2nd Feb 2019
    7:56am
    True, Misty, but it will reign the ruling party in and prevent the worst excesses. What we really need is the British system of politicians voting according to conscience, not always towing the party line. If they weren't afraid to cross the floor, some of them might do their job more effectively.
    Anonymous
    2nd Feb 2019
    7:59am
    I will vote Independent or minor party this time around. I've been reluctant to do so in the past because I felt that one party or the other needed to be soundly defeated and we couldn't risk a hung Parliament, but this time I think we just need to send a strong message to both LNP and Labor that we've had enough of their extremes and we want good government - designed to benefit the nation and its people, not the greedy power-mad mongrels who exist in an artificial world of excess privilege.
    Rae
    2nd Feb 2019
    8:58am
    Watch the preferences Rainey.
    Anonymous
    5th Feb 2019
    12:50pm
    I decide my preferences, Rae. Nobody decides them for me, and nobody has the power to.
    Sundays
    1st Feb 2019
    2:59pm
    The royal commission was cut short with many especially in the farming sector not having a say. ASIC and APRA are a disgrace, the CEO’s need to be replaced. Oversight is not eneough, they need to prosecute where necessary.
    Wstaton
    2nd Feb 2019
    7:54am
    Yeah! I noticed that the RC on unions wasn't cut short.
    Rae
    2nd Feb 2019
    9:02am
    Yes I was farming during those years and the banks were bastards. They destroyed families and stole assets during a time when interest rates went to 23% due to Central Banks fighting inflation. There should have been moratoriums protecting farmers. It wasn't just the banking crisis but the destruction of the Wool Board and then the Wheat Board. And a drought. I'm not surprised the suicide rate was as high.

    I remember thinking I'd like to get my hands on Keating who did absolutely nothing to help at all.
    TREBOR
    1st Feb 2019
    3:06pm
    Sounds like the start of the Controlled Society that is the direct result of those with the opportunities behaving irresponsibly and selfishly and greedily. this is what happens when you have inadequate oversight and regulation enforcement, accompanied by a climate of Neo-Robber Baronism and 'greed is good', under the aegis of 'what's good for business is good for everyone' - that last being demonstrably absolutely untrue.

    Yes - we need stronger regulation...

    No - we do not need a more centrally controlled society...

    Yes - we need people of ethics in business and government...... but I won't hold my breath.

    A tax deductible donation to a charity is 'punishment'? Same as all other 'punishments' - the account or shareholder foots the bill, while the fat cats at the top get another bonus.
    Misty
    1st Feb 2019
    4:05pm
    Are you the same TREBOR as the one without the photo?, I have been wondering.
    TREBOR
    1st Feb 2019
    4:13pm
    Can't be.... always had a photo... haven't seen 'the other one'.. that Doppelganger...
    TREBOR
    1st Feb 2019
    9:23pm
    It could be just a glitch in the output from YLC - could be me... I'd have to know what comments were made...
    Misty
    2nd Feb 2019
    2:05am
    Are you not reading these comments TREBOR?, look above.
    TREBOR
    1st Feb 2019
    3:43pm
    .... and while we're on the subject - how about the 'reverse mortgage' loan sharking be fully reviewed, with its usurious rates of interest and the real outcomes becoming apparent now - and these be converted retrospectively to ordinary mortgages at ordinary rates.

    The principal doubles in 7.2 years or so, trebles in around 11, and is quadrupled by 13-14 years.... when, as is happening with a friend's family - one aged parent dies and the other lives on.. the end result is utterly usurious...

    The reality is that in the same time span, a regular mortgage taken out against real equity would not even have doubled its principal...... that takes around 25-30 years - not 13-14.

    Good work if you can get it, and a clear sign of the loan sharking attitude of financial institutions, and many have fallen foul of it.
    TREBOR
    1st Feb 2019
    3:45pm
    Like the daylight robbery of nursing homes (many of) - wouldn't touch it with a double length barge pole....

    Sorry - haven't done the fine figures yet - but the real rate of interest ends up in the 20%+ range in actuality and rising continually .... at compounding.... doesn't take long to vanish the whole thing down the gullet of Leviathan the Banker....
    Rae
    2nd Feb 2019
    9:06am
    There does seem a concerted effort to get hold of the retirees home. Appears only the really wealthy will be allowed to pass on assets to their children. That's how they got to be mega rich and they don't want competition.
    Misty
    1st Feb 2019
    3:54pm
    How will we ever know the truth of what the RC findings are, I am sure if there is a way of hiding some of the worst conduct and the recommendations made by the RC this govt will try to do it.
    TREBOR
    1st Feb 2019
    4:18pm
    At the end of the day, what this brings under scrutiny, and it's a wide-ranging issue in our current society - is what is and what is not 'within the rules'. One clear reason politicians will be loath to change those (gasps) Entitlements is that they themselves prosper mightily from their own use of 'the rules' that govern their perks etc. Not only that, but politicians are wedded to the idea that business is good for everyone (false), that it 'creates jobs' HERE (false), and on top of that, business UNIONS have ready access to politicians (they all live in the rarified atmosphere of privilege and easy cash, after all - they're a 'better' class and must perforce mingle with 'their own kind', they dress well and don't sweat, and their 'arguments' are reasoned and measured superficially at least), who are also, in far too many cases, their shareholders as well.

    Let's called a spade a spade - corrupt from top to bottom.

    Business rules and laws need a full review, as do the entitlement complexes that prevail for some, but not all.
    Not a Bludger
    1st Feb 2019
    4:42pm
    Well now, all of you permanently outraged, moaning and groaning above about some minor, improper lending by the major banks who, incidently, underpin the whole of our economy and your own living standards, what about:-
    - the payday lenders with usurious rates, repressive renewals etc such as Cash Converters, Latitude, Nimble, Wallet Wizard to name a few

    No grizzling from you here, about a large section of the loans industry entirely missed by the Royal Commission and the raft of rentseeking lawyers feeding off it.

    Conclusion? - big banks are easy to get at but this area, amongst others, are not - too hard for these commissioners so far removed from the real worl.
    TREBOR
    1st Feb 2019
    5:09pm
    'minor' ... that is the Academy Award right there, people...

    Joe Blows robs a servo - gets five years... Billy Fatt robs fifty thousand servos and countless others - and gets a hand slap....
    TREBOR
    1st Feb 2019
    5:10pm
    I've started the attack on usurer lenders - starting with reverse mortgages...
    Anonymous
    1st Feb 2019
    5:12pm
    Yep the real crooks are robbing the poor blind with afterpay and loans at exorbitant rates
    But the idiots on here have swallowed the rubbish churned out by the left
    These people are soooo clueless they would sink the economy with their stupidity
    TREBOR
    1st Feb 2019
    6:12pm
    Are you my deceased brother, Lothario? You heart seems to be in the right place, but you mind does not follow it.... "Ahh.. Houston.. we've had a problem."
    Anonymous
    1st Feb 2019
    9:40pm
    if I was your brother , I would've disowned you when you were 3.
    Misty
    1st Feb 2019
    11:04pm
    Why 3 Lothario, can't you count past that number?
    Anonymous
    1st Feb 2019
    11:18pm
    3 years old is when I figured Trebor learnt to speak.
    I was speaking the Queens English at 3 months
    TREBOR
    2nd Feb 2019
    12:57am
    .. and it was all downhill from there.............. are you Rain Man?
    TREBOR
    2nd Feb 2019
    12:59am
    Three months old - gabbling through gums and untrained lips..... **rolls eyes** ...

    Who ever told you that? How do you KNOW?
    KSS
    1st Feb 2019
    7:25pm
    I'd rather wait until the report is released on Monday before commenting instead of jumping in with the usual negative ill informed opinion we are used to reading on this site.
    Karl Marx
    1st Feb 2019
    8:02pm
    That's ok KSS you can just ignore Robbo, Not a Bludger & Lothario.
    TREBOR
    1st Feb 2019
    9:24pm
    By all means - let's have the negative ill-informed opinion... il faut faire un demonstration...
    TREBOR
    1st Feb 2019
    9:27pm
    That comment was made by a French General at the Battle of Inkerman during the Crimean War to his British counterpart, when confronted by a mass of Russians coming their way ... it is necessary to make a show.... let the bustards know we're here and ready to sink our fangs into any of their skullduggery... that way they'll think twice...

    2nd Feb 2019
    8:05am
    ASIC is a toothless tiger. I had dealings with them twice. The first time was to ask why they hadn't taken two company directors to task for seriously illegal conduct, involving major repeated frauds. The response was that they had a stack of complaints and evidence that reached floor to ceiling, but they couldn't justify the expense of pursuing action as it was likely to be costly and the culprits had no assets to pay costs!!!
    The second time involved an ASIC employee abusing her role and title to support illegality. She was eventually sacked, but not before she caused investors major loss. The complaints were just ignored time after time after time.
    Rae
    3rd Feb 2019
    7:50am
    Yes. I asked them about Coca Cola taking megalitres out of our acquirer for barely any cost and how we could stop it. The acquirer has been used for tens of thousands of years in the dry times and is sacred to the ancestors here.

    Nothing can be done. They can just have the water apparently to make billions from it and bad luck everyone here.

    You read about this happening in third world countries and shake your head. It's sad our grandkids will have to live in a third world left to them through stupidity. The foreign corporations are making off with our resources for not much more than a small bribe.

    Not much the Natives can do when all Governments here are in bed with them and enjoying a bit of cake while they can.
    Adrianus
    6th Feb 2019
    11:28am
    I wish the Gillard appointed Labor member head of ASIC didn't resign just before the RC. I would have liked to hear from him. He would know what went wrong?
    Rae
    2nd Feb 2019
    8:25am
    Good article Kaye. Yes there has been a failure to impose consequences for rule breaking.
    The possibility of another banking crisis is quite real and we are having too many of these events nw and ordinary people pay the price. APRA has covered the banks at every turn instead of looking after the customers. I wonder if any of them realise who they are there to serve and it's not the Government nor the banking system.
    Anonymous
    2nd Feb 2019
    8:27am
    Another banking crisis ???? Are you serious
    It was all a nothing witch hunt
    Waste of time and $ millions
    Wstaton
    2nd Feb 2019
    8:58am
    I guess the RC into Unions must have been a witch hunt as well Lothario.
    Rae
    2nd Feb 2019
    9:18am
    1973, 1989 to 92 and 2008/9. All banking crises. There were others earlier but since going off the gold standard they appear to be getting worse.

    I'm not saying our banks were responsible as it was usually Central Banks, currency issues or commodity booms at play. Now we have excessive housing debt and a great big property bubble and a share bubble and a bond bubble. Which one do you think will blow up first?

    The RC won't cause a banking crisis but that $4 trillion of debt and who knows how much in derivatives riding on it might.

    I was forced to sell a house for a 35% discount in the 1989 episode when the bank called the loan as prices dropped. Not nice. I sold in 2 hours fortunately to a nice young nurse and his family which was the only saving factor in the lousy business.

    Do I trust banks ? No not at all. They are useful but need to be used with eyes wide open and ready cash if it all goes pear shaped in my opinion.

    Labor and the franking credit/negative gearing fears might just be enough to trigger a crisis. We never know until it hits what the cause is but it's always nasty for debtors and the economy.
    Wstaton
    2nd Feb 2019
    9:22am
    It is interesting to note that Australia was #7 in the world corruption index in 2012 (85 points).
    It is now #13 (77 points) Wasn't this the year before the LNP came into government.

    In comparison New Zealand was #1 (90 points) in 2012 It is now #2 (87 Points)
    Misty
    2nd Feb 2019
    10:11am
    Repeating yourself again Lothario.
    Adrianus
    2nd Feb 2019
    10:21am
    I'm looking forward to ASIC's report into the "buy now pay later" sector. No doubt Afterpay will be included in the report. They received $28m in late payment fees alone over just 12 months.
    Rae
    2nd Feb 2019
    11:35am
    Yes Adrianus. Lay-by at least encouraged paying regularly so you could collect the goods. After pay seems like unsecured finance for those who can't afford to buy but won't delay gratification. That has always been a bad combination.
    Adrianus
    2nd Feb 2019
    11:57am
    Afterpay and others should not be allowed to operate without the restrictive regulations which control bank behaviour. We have it all wrong. These people are making squillions out of hardship which is producing more hardship and we're hammering the banks?? We are simply transferring the problem but making it bigger in the process. Which makes me wonder about the legitimacy of these RC's being impartial and not simply political witch hunts.
    Anonymous
    2nd Feb 2019
    12:13pm
    I wonder if any the unions or labor big wigs are major investors in afterpay and the other loan shark companies that are popping up all over the place
    Adrianus
    2nd Feb 2019
    1:10pm
    Seeing you mention it.. One of the strongest protests against more regulation of the financial services sector comes from none other than Afterpay's economic advisor Craig Emerson. You may remember Craig Emerson as a former Trade Minister in the last Labor Government.
    Anonymous
    2nd Feb 2019
    1:12pm
    Yes another slime weasel just like Shorty
    Sundays
    2nd Feb 2019
    1:20pm
    Actually, Lothario Afterpay was started by rich young guns from families in business. I doubt they vote Labor. They saw a business opportunity to appeal mainly to young buyers and went for it. I’m sure the fact the sector is unregulated was a driving force
    Misty
    2nd Feb 2019
    1:21pm
    Mind your language Lothario, you could be sued for slander making comments like that.
    Adrianus
    2nd Feb 2019
    2:43pm
    I wonder why Afterpay needs access to the electoral roll? And how do they get that access?
    Adrianus
    2nd Feb 2019
    10:00am
    It all depends on what you would like achieved by the RC . Should it go longer? Why? I think we got a pretty good idea of what went wrong and why.
    The government gets off scot free? So was this RC meant to be an attack on the government? If so it was a little too late. The RC should have been called by Julia Gillard. That's when all the problems were surfacing.
    Sure the little guy pays as we are now seeing. Should we make the little guy pay more?

    If we look at the heads which did roll, then work back, we may come to understand why the Gillard government did not call the RC.
    Anonymous
    5th Feb 2019
    11:55am
    That's the reality, Adrianus. The little guy pays. When the monkey plays with the python, the monkey loses - every time. Some naïve folk think they can change the way the world works. An RC. A lot of public complaint. A little compensation for some. All is well again! NOT!
    Placido1
    5th Feb 2019
    12:18pm
    Actually I think it should have been Howard who should have instigated the banking RC although he did say " an RC in the banks is rank socialism"

    He reckons it's ok for the banks to steal our money.
    Anonymous
    5th Feb 2019
    12:47pm
    I don't think Howard thought theft was okay at all, but he knew an RC wouldn't change anything, and it won't - except to drive share prices down and make a lot of folk poorer (hopefully only in the short term!)
    Placido1
    5th Feb 2019
    1:03pm
    OnlyGenuineRainey

    Well looking at the market today UP 126.5 points, your comment has a meaningless ring about it. It appears that investors are relieved that the RC is over and Moribund won't be taking very firm action.
    Anonymous
    7th Feb 2019
    3:07pm
    And that's my point, Placido1. Very little has been achieved. The RC could have been more damning, and driven share prices way down - and the whole of Australia would have suffered as a consequence, because most Australians hold bank shares either directly or indirectly through their super fund.
    Bruce
    2nd Feb 2019
    4:07pm
    I found out the AMP was corrupt in 1974. Been with them from age 15. Investing for my future. I lost 33% of my money to those liars.
    The big 40 banks are crooks too.
    The people who give their money to these 5,are the real reason those people suffering.
    But. Commonwealth bank will lend money to battlers on a knife edge. Some achieve. Some fail. But at the end of the day. If you can't pay your loan. Don't get one.
    Bank fees were a Rort.friends were paying $150 a month for fees alone. My smaller bank don't charge me any fees.
    Karl Marx
    2nd Feb 2019
    6:09pm
    The banks can complain all they want but the reality is that if they had followed due processes with checks & balances while telling the government, media & everyone else that all is ok "because we are self regulating" the RC would not of been necessary, but self regulate they did not apart from their own greed.
    They have brought it upon themselves.
    And the cost to shareholders & investors, well, you made your investment like everyone else, you had the good times now it might get a bit rocky like any investment.
    Weather the storm me hearties it'll pass
    Rae
    4th Feb 2019
    7:13am
    Oh to be a bank. Just create money out of nothing, lend it at interest and no regulations much at all. Better yet invest in real estate and then create a boom. Brilliant. Printing money must be a heap of fun when there are only rules you make up for yourself.
    MICK
    2nd Feb 2019
    9:49pm
    The normal right wing funded trolls have come in like sharks on this one to protect the current government and bank CEOs. Both should be indicted and both should be doing time in Pentridge.
    Bet your bottom dollar that NO BANK CEO will be hauled before a court. Nor will they have fines in the tens of millions of dollars to pay.
    Also bet your bottom dollar that those in government on both sides of politics who allowed this to happen in full knowledge of what was going on will also have no case to answer. I remember Turnbull denigrating Shorten who was pushing for a Royal Commission with the one liners about it being a waste of money and so forth.
    So who will pay? Of course....same result as always. The big end of town has made fortunes and the victims and all of us will pay the price. That's how a system run by the big end of town for the big end of town works. This is not news.

    Oh yes...."leftie", "CMFEU", "Shorten", "Pink batts and school halls"....... I can hardly wait for the trolls to cut and paste their BS. Make my day!
    Adrianus
    3rd Feb 2019
    4:53pm
    MICK, you forgot "cash for clunkers," "1200 deaths at sea," "50,000 boat people," Gosh, there are too many terrible memories from the unions last attempt at destroying Australia. Why do you keep bringing it up?
    Rae
    4th Feb 2019
    7:10am
    Didn't we get 30 000 plane people that were just processed with no media coverage?

    If the only thing that comes out of the Hayne Report is an end to Commissions that would be a bonus. Damned if I'm ever going to pay a commission again. I'll ask and walk away if I even smell one.

    Some bank superfund will need to be sorted.

    If banks are going to be allowed to create money willy nilly then we need some rules about who they lend it to and what for. Just building a house boom isn't helping grow a better Nation. Lending for business and start ups needs to be encouraged.Selling each other houses and coffee isn't terribly clever.

    Anyone know how that 444 million mates on the reef thing is coming along. Have they fixed anything yet or just bought a few new yachts?
    Adrianus
    4th Feb 2019
    10:24am
    No Rae, it was 200,000 refugees which came in by plane. When Captain Emad was supposedly an informant for Labor gov working out of Canberra as a trolley boy. There were also accomplices embedded in the Immigration dept.

    Read for yourself?

    "The ABC has revealed that a people-smuggling kingpin known as Captain Emad passed himself off as a refugee in 2010 and operated his business from a Canberra suburb."

    3rd Feb 2019
    3:50pm
    Meanwhile in other news, an ABC Cameraman while filming an episode of the Insiders was so gobsmacked and disgusted with Shorty’s blatant b/s that the poor guy fainted
    Adrianus
    3rd Feb 2019
    4:39pm
    It happened as soon as Bill Shorten said he was handing back bigger tax refunds..

    He's ok for now, but he is not alone. Many of us have built in BS metres which can go off the scale at this sort of stuff.
    Misty
    3rd Feb 2019
    5:48pm
    And how do you know that Lothario?, did you ring him and find out why he fainted?, just more of your B--L S--T.
    Misty
    3rd Feb 2019
    5:51pm
    So Adrianus, after reading Lothario's B--L S--T comment above did your BS metre go off the scale?, mine did big time.
    Karl Marx
    3rd Feb 2019
    5:55pm
    Just been talking to the cameraman & floor manager. He said it had nothing to do with the interview with Bill. He had been feeling a little under the weather for about 2 hours before the interview but decided to carry on regardless, just like the true blue union member he is he put the company first.
    Anonymous
    3rd Feb 2019
    6:25pm
    Poor bugger didn’t want to lose his job in case Shorty became PM
    Union thugs wudda bashed him up and he would never find work in a leftie organization ever again
    Misty
    3rd Feb 2019
    7:31pm
    More B--L S--I comments from you Lothario, my BS metre is going off the scale.
    Misty
    3rd Feb 2019
    7:32pm
    1984 did the cameraman tell you he belonged to a union or are you just assuming that?.
    Placido1
    5th Feb 2019
    12:13pm
    And Morrison has the unmitigated Gall to blatantly lie and say "The Banks got us through the GFC"
    It was the ALP stimulating the economy AND the bank guarantee in 2008 the ALP GOVERNMENT! introduced the guarantee $1,000,000 per account, this was reduced in 2012 to $250,000, which by the way is STILL in place. The trolls may rail and throw up (vomit) disagreement but these are facts! If the guarantee was not valuable why has Abbott, TurnBull and I think it is still Morrison repealed the guarantee
    Placido1
    5th Feb 2019
    12:15pm
    "why has Abbott, TurnBull and I think it is still Morrison repealed the guarantee "

    should read Not repealed the guarantee? typo!
    Anonymous
    5th Feb 2019
    12:45pm
    Have you actually read the wording of the bank guarantee. It might have done some good by bluffing people into having false confidence, but it's really meaningless. I hope you never have to rely on it, because you will be bitterly disappointed!
    Placido1
    5th Feb 2019
    12:58pm
    OnlyGenuineRainey

    Well if it is REALLY meaningless i would have expected the current parties allegedly governing Australia to have leapt on the fact with immense glee brandishing said meaningless guarantees like a lump of coal in parliament. They would not have ignored the opportunity to score points. Wonder how they will get on next week when they finally appear at work for a few days.
    Adrianus
    5th Feb 2019
    10:10pm
    Ironically it was Ken Henry who was instrumental in Rudd increasing the Bank Guarantee, which did more harm than good. The unions were more focussed on how they looked than steering Australia toward economic prosperity. Anyone who thinks Labor and the unions saved our bacon is a bloody idiot.
    Misty
    5th Feb 2019
    11:10pm
    Well Adrianus it certainly wasn't the Coalitiion that saved our bacon was it.
    Adrianus
    6th Feb 2019
    10:00am
    I liked this Scott Morrison quote. So true and succinct.
    Bill Shorten is union-bred, union-fed and union-led.
    Karl Marx
    6th Feb 2019
    10:07am
    And what is wrong with deing a unionist
    Misty
    6th Feb 2019
    10:31am
    Unions are what got better working conditions and better pay for people all over the world Adrianus, what is wrong with that?, remember what happened in France, when people who were starving and couldn't afford bread were told to eat cake?, those days are hopefully gone forever, although maybe you and a couple of others here who are union bashing would like to see them back.
    Adrianus
    6th Feb 2019
    11:23am
    And do you remember what has happened in France more recently? People are rioting at the Macron governments unsubstantiated increase in taxes. Enough is enough!
    Unions are not what they used to be. Their followers need to stop living in the 1960's.
    ex PS
    7th Feb 2019
    1:32pm
    No, Unions are not what they used to be, they have had their hands tied by government regulation that is designed to pander to business.
    Thank you for highlighting Bills credentials, just the kind of man I would place a vote for, much better than Big Business bred, Big Business fed and Big Business led. Given the choice I'll take the former.
    Anonymous
    7th Feb 2019
    3:05pm
    I think you and 1984 and several others want those days of 'let them eat cake' back, Misty, because they WILL return if Labor is allowed to demolish the value of work and kill off all incentives, making pensioners the 'privileged elite'.

    Already I, personally, can name over 300 SFRs or soon-to-retire who COULD be SFRs who have planned and manipulated to qualify for the OAP because of Shorten's unfairness and stupidity. If I can name that many, there must be countless thousands. What happens when the money runs out? Seems we have a lot of Labor supporters who subscribe to the theory that you can take endlessly from the productive citizens and hand out to the unproductive with no consequence. You will learn that it doesn't work!
    Misty
    7th Feb 2019
    5:18pm
    What do you mean by, "Unproductive Citizens", OGR?, most people on pensions I know have worked hard all their lives and been very productive citizens, it is insulting to suggest otherwise.
    The Golden Handshake Days & Fob Watch Gone
    8th Feb 2019
    1:23pm
    If I had the power those held to trust I would let them keep a residence and a bit of cash say $250,000 and the rest of assets removed by the Authority and left with Mr Haynes to pay person's ripped off lost homes and businesses and payout divorces as judgements on these absolutely greedy manipulative bankers and financiers and mortgage brokers accordingly.

    Thank you Mr Whistleblower who blew the whistle on this. I am not affected but I feel for others and their plights. I probably in past paid for something or more but have a collateral free house, wife and adult daughter working and getting by on an age pension.
    Misty
    8th Feb 2019
    1:32pm
    Don't hold your breath GHD&FWG, nothing much will change, regardless of who is in government when it comes to the banks.