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.