Bank executives to be held accountable

Bank executives to be held accountable

Sylvia Jefferys: Treasurer Scott Morrison has stepped up his assault on the banks this morning, with tough new rules targeting senior executives.

Finance editor, Ross Greenwood, is here to break it down.

Ross, what exactly is Mr. Morrison cracking down on?

Ross Greenwood: Alright, so, what he’s doing is basically trying to stop the practices by which banks, or their executives, do the wrong thing by the consumers and then, ultimately, don’t pay any penalty whatsoever.

So the regime that he’s putting in place, along with this bank levy that the banks don’t want, is to put some personal accountability back into the hands of the bankers.

In other words, if they behave incorrectly, they can be deregistered; they can actually be banned from acting as directors, or in fact, officials of banks.

And there’s some merit to this because, in all of the Senate inquiries and the hearings we’ve had, the House of Representatives of the bank executives, they keep on being asked, how many people have been sacked as a result of the misdeeds of the banks.

And the answer is, well actually, none.

And yet the problem has been in the case of say Storm Financial and some of the financial planning scandals that hit the Commonwealth Bank – some of those people who were involved in  those, simply went to other banks and did the same thing.

And so the community was put at danger by the fact that the banks had not taken any action, whatsoever, against those people who had perpetrated these issues.

Now, it could go as far as even misdeeds for drugs and alcohol.

Now, this is pretty big call in our society these days to do this, but there is no doubt that the Treasurer is quite keen to try and clamp down, on really what does seem to be anti-social behaviour inside of banks.

Sylvia: He’s certainly turning up the heat on the banks.

Ross Greenwood, thank you.

Other articles posted on Bank Levies in May 2017.

30-05-2017 ABA slams bank levy – Anna Bligh

30-05-2017 ATO Commissioner grilled at Senate Estimates

30-05-2017 Paul Hogan s lawyer reacts to ATO Commissioner Chris Jordan

30-05-2017 Treasurer Scott Morrison “Crackdown on Bank Execs”

29-05-2017 Money Minute – May 29 2017 Benefits Shake-Up

22-05-2017 Westpac reveals the impact of the bank levy

19-05-2017 Newsletter – May 19th 2017

18-05-2017 David Coleman – Recommendations to come into effect after bank inquiry

18-05-2017 Treasurer Scott Morrison – “Let me tell you about Ken Henry…”

16-05-2017 NAB Chairman Ken Henry wants an inquiry into the bank levy

13-05-2017 Ross Greenwood Newsletter 12 May 2017

12-05-2017 Bank Tax War – CBA CEO Hits Back at Bank Tax

12-05-2017 Prime Minister Malcolm Turnbull

10-05-2017 9News: Budget reveals big taxes on banks

10-05-2017 Anna Bligh – Australian Bankers Association – Bank Levy

10-05-2017 Chris Bowen Shadow Treasurer

9News: CBA CEO hits back at bank tax

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