Ross Greenwood: What the Government didn’t want, didn’t need but now has.
The problem now for Malcolm Turnbull and Scott Morrison is that they and others have made too many denials, too many strange things have been said,. Things like this –
John Howard: I would be staggered if the Coalition proposed a Banking Royal Commission. It is rank socialism.
Ross: “rank Socialism” – now don’t be surprised if that one gets wheeled out a few times between now and the next election.
There is also this – repeated and repeated over months and months. Now, this one was just Tuesday this week.
Malcolm Turnbull: We have made it very clear we are not going to establish a Royal Commission and the reason for that is because we simply want to get on with the job. Now, let me tell you! If we set up a Royal Commission into Banks two years ago, none of the reforms we have undertaken would have been able to be achieved.
Ross: Am I silly? Why have we got a Royal Commission? But we’ve got one? Into our banks, superannuation funds, and financial services.
We got it cause of politics so that the government didn’t lose control of the Government in the process of the House of parliament.
Super funds, I got to tell you, are seething they’ve been dragged into this with the banks as well.
Now, consider what credit ratings agencies Standard and Poors said last night, Australia has among the best bank regulation in the world – some of the world’s best!
So what are we inquiring into?
Well – your weekend reading is the terms and references of that Royal Commission. It wont take long, the government clearly didn’t have a lot of time to write it.
Now, broadly, it will investigate any financial misconduct by financial services companies or their offices.
This can cut across existing investigations. It will also look at the performance of individuals as well. It will broadly look at bank culture, whether existing laws are adequate.
But for me, the way it looks, do not be surprised in 12 months’ time if all things get a complete bill of health.
Waste of Money.
Massive night on Wall St overnight, the Dow Jones up 310 points. The Dollar 75.6 US Cents.
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