Ross Greenwood: Australia’s largest bank to settle a six year rate rigging scandal.
Today, it also said it made $2.3billion profit in the past three months.
Now, the Commonwealth (ASX:CBA) makes around $17,933 every minute – so it will pay the penalty in less than a day and that’s why small business are so grumpy.
Peter Strong: Its no where near enough, its petty cash.
Ross: The bank-bill swap rate is one of our key rates. It sets the benchmark for business loans, credit cards and mortgages.
The Commonwealth admitted on at least five occasions that in 2012, its traders rigged that rate for its benefit.
The Commonwealth has agreed to a $5 million penalty, an extra $15 million to the consumer protection fund and $5million towards ASIC court and investigations costs.
The federal court is yet to approve that settlement.
But there’s another mystery – 9News sought to discover which consumer protection fund will make its payment too.
The banks spokespeople – they didn’t seem to know.
At ASIC, it was the same story.
But with some digging we discovered the government is setting up a new consumer protection fund but it hasn’t been established today.
Which means for now, the Commonwealth and other banks, have got nowhere to send the cheques too…
So that’s $15 million from the Commonwealth and $20 million from each of the ANZ and NAB, despite orders of those banks being made six months ago.
Peter: There is a real issue here – the banks are showing no respect for customers and no respect for the nation.
Ross: This follows more serious allegations against the banks in the Royal Commission, including that is charged customers fees after they had died.
Ross Greenwood, Nine News.