Commission Royale

Spartacus is amused.   Sort of.

Whilst not at all discounting some of the abhorrent behaviour thus far highlighted in the Banking Royal Commission, a little bit of perspective is necessary.

Absolutely positively, the bad behaviour identified at the Banking Royal Commission is terrible and abhorrent.  But it is not news and seems to have nothing to do with actual banking.  The big issues, at least identified thus far, relate to the provision of financial advice and not credit or deposit taking.

Let’s remember that AMP is not a bank, it is a wealth manager.   Yes it owns a bank, but there have thus far been no issues identified within the AMP bank.

On another level, some proportion please.  Yes.  Many people have been severely and adversely affected, but out of how many?  And what about financial planners who don’t work for the big 4 or AMP.  Will there be ventilation of their issues?

Is there to be a royal commission into accidental deaths and injuries within the health system?  How about a royal commission into the number of children graduating school being unable to read or count?  These things happen.  They are terrible.  They are horrible.  But some proportionality please.

However, in one of the more idiotic analyses provided thus far, Andrew White in the Australian writes about resources being restored at ASIC.  Fair dinkum.  As he himself describes, yes perhaps ASIC is getting less direct government budget funding, but there seems no evidence that total resources have diminished because of ASIC’s cost recovery regime (taxation by other means).  And then to yabber on about head count numbers please within ASIC.  For heaven’s sake!

You’d think someone who is in the business of covering government knows by now the difference between resources (inputs) and results (outcomes) and the difference between quantity and quality.  It was like reading the Guardian.

Spartacus would rather employ 1 hungry and talented lawyer than 15 of your average CPSU members.  It is not about the quantity of the people, it is about the quality; especially at the leadership level.  Look at Greg Medcraft, who was the global head of securitisation for Soc Gen and some of his “post employment issues“.  One might also wonder how many staff could have been funded with Greg Medcraft’s international travel budget?

When it comes to resources in large organisation, there is also the factor of priorities and resource allocation.  ASIC has long had the powers and the resources to address the issues raised thus far – hence the references to breach reports to ASIC and licence reviews.   What ASIC chose to do is another matter.

But Spartacus’ favourite issue thus far relates to the screams from politicians about these entities charging customers fees without providing the specified service.

What do these politicians think about their customers (tax payers) being charged fees (taxes) without the provision of specified service?

You know, like.  Kettle, pot, black.

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36 Responses to Commission Royale

  1. stackja

    ASIC should be investigated. Why weren’t banks held to account earlier.

  2. Infidel Tiger 2.0 (Premium Content Subscribers Only)

    ASIC is about to investigate Uber Eats.

    What a stupid body they are.

  3. feelthebern

    ASIC is more interested in its own social media than doing any form of enforcement.
    True story, in their annual review they say how many people “liked” their moneysmart website.

  4. Many people have been severely and adversely affected, but out of how many?

    Unfortunately, the extent isn’t known and may never be known.
    .

    But Spartacus’ favourite issue thus far relates to the screams from politicians about these entities charging customers fees without providing the specified service.

    What do these politicians think about their customers (tax payers) being charged fees (taxes) without the provision of specified service?

    We all accept that taxes can and do pay for unspecified services. We live in the hope that those taxes are used wisely and, if not, we have the opportunity to replace the culprits.

    The average consumer doesn’t quite have the power to do that with major financial institutions ie the boards.

    It’s a bit like Sinc suggesting that the likes of Facebook or Google etc shouldn’t be regulated; the consumer can go elsewhere, but where is that ‘elsewhere’?

  5. Habib

    Ever since this was mooted I’ve been asking when the RC into government at every level is going to kick off.

    The most larcenous, patronizing, bullying, incompetent, obnoxious, irritating, duplicitous, wasteful and dangerous organization in the country. The CFMEU merging with the MUA? Pffft, amateurs. They could merge with the Hells Angels, the local IS glee club, ‘Ndrangheta, the Greens and the Adelaide barrel society and not come within cooee of these thieving, lying, standover cretins.

  6. Tim Neilson

    We live in the hope that those taxes are used wisely

    Strictly speaking, no. You can only “hope” if you have some belief that the subject of your hope may be real. We may hope that every now and then some of the rivers of gold get spent wisely, but I doubt whether anyone thinks that there’s a snowflake’s chance in hell that all or even most of it is, or will be in the foreseeable future under a Trumble/Peanut Head/Minimum wage buster triumvirate.

  7. Habib

    There’s plenty of opportunity to avoid the major banks, they’ve not had a whisker of business from me in decades, because they are sticky-fingered swine, and provide a shitty service to boot. Join a bloody credit union. The few examples I’ve seen come out of this waste of time and money were the gullible/greedy getting hosed, as usual. No amount of legislation with prevent either demographic get its wallet lightened. Caveat emptor springs to mind, yet again.

  8. H B Bear

    If the government was serious about preventing the sorts of abuses that have been uncovered so far at the RC they should have prevented the inherent conflict of interest that is impossible to avoid when a financial management company is owned by a bank in the first place.

    As one of the talking heads said in the weekend papers, most of this behaviour could be eliminated by simply outlawing percentage based fees and ticket clipping. In addition to providing a big fat new income stream for the unions through industry super funds, Keating’s compulsory superannuation laws created the fattest pinata for Big Banks and Big Accounting sharks swimming along taking chunks out of the super whale at every stage of the process.

    Australia has one of the largest domestic savings pools and still pays some of the highest management fees in the world on those funds – again through the sort of lazy oligopolistic market structures that characterise all Australian markets. Don’t expect the RC to change this cozy arrangement any time soon.

  9. Dr Fred Lenin

    Spartacus,socialists hate banks proles put their money in them u=instead of giving to the socialists for protest-residents e projects like more money for pollies and the aparatchiks .
    Just imagine the gangrene peoples bank ? What an opportunity to loot ,be better than Union super funds .

  10. It’s a bit like Sinc suggesting that the likes of Facebook or Google etc shouldn’t be regulated; the consumer can go elsewhere, but where is that ‘elsewhere’?

    Whilst Spartacus does not necessarily share the view that Facebook and Google should not be regulated, last I checked Facebook and Google don’t have the power to force you to consume their product/service and then to send the police to your door if you refuse to pay up.

    Don’t like Google or Facebook. Don’t use them. Can you say the same about government?

    There are plenty of alternatives to banks. Credit unions. Bit coin. Cash. The international convention on human rights does not have a provision for credit, banking facilities or wealth management advice.

  11. Dr Fred Lenin

    Someone told me you could do a four day course then be a “financial planner” ,is this true . It takes longer to do a cleaners “degree” at tafe ,and that’s not including honours for vacuum cleaning .

  12. Texas Jack

    Yes. Proportionality. And watch as the Coalition chase their tail having lost in the lamest of lame attempts to generate some sense for it. Having lost the war they’re now desperately trying to find something resembling a sliver of political advantage by hoping nobody can distinguish their position from Bill Shorten’s.

  13. Beachcomber

    This RC is effectively a show trial. The banks will be brought under full control of the Green Marxist government UniParty. Party appointed commissars and ‘equity’ enforcers will control the banks. Free enterprise, market competition and personal responsibility must be eliminated.

  14. RobK

    Ill join the pile-on: the share holders should wake-up that most of these gold plated top executives are grossly over paid and not nearly as good as they have you believe. At those rates it is no surprise they have no respect for other peoples hard earned money, it all comes too easily for them. Yes, the regulators too need a kick up the preverbial. These buggers have no shame.

  15. Dave of Reedy Creek, Qld

    Interestingly, we have had a great run with CBA. Good service, very good insurance, mostly polite and easy to deal with, maybe we were just fortunate. Have never used a financial planner, have discussed the matter with our bank but didn’t proceed.
    On Royal Commissions, what happened to all the material that turned up with the one into the unions in Tony Abbott’s day? Was that the real reason he had to be removed? There was findings that just disappeared overnight…gee wonder why?

  16. …but I doubt whether anyone thinks that there’s a snowflake’s chance in hell…

    I was speaking in generic terms, not the current bunch of cretins.

  17. Whilst Spartacus does not necessarily share the view that Facebook and Google should not be regulated, last I checked Facebook and Google don’t have the power to force you to consume their product/service and then to send the police to your door if you refuse to pay up.

    I wasn’t talking about that, but the fact that they are so entrenched into society that for the vast majority, there is no alternative. I don’t use Facebook, but I do use Google and there is no effective alternative.

    Don’t like Google or Facebook. Don’t use them. Can you say the same about government?

    You can’t say that in all seriousness. Two reasons. Firstly, it’s like saying I don’t like my water and electricity costs, so I’ll stop using the suppliers; try going independent in suburbia, or even rural where I live, you can’t. Secondly, when entire generations of a family use the likes of Facebook to communicate with each other, how can one or two say to their family, ‘I’m not using Facebook anymore, use Handbook, because that’s what I’m using now’. That’s how Facebook has over one billion people hooked.

    There are plenty of alternatives to banks. Credit unions. Bit coin. Cash. The international convention on human rights does not have a provision for credit, banking facilities or wealth management advice.

    I challenge any average family to manage their day to day affairs without using a bank. A credit union is just another form of bank. When it looks like a duck, walks like a duck and quacks like a duck, it must be a duck.

    How do the majority of people today get paid? Directly into a bank account. The majority have no option but to have a bank account. Many major service providers will not accept cash, they don’t even have a storefront.

    In fact, it’s becoming increasingly difficult to do much at all without a credit rating. How do you get a credit rating?

  18. Myrddin Seren

    I have no doubt Malcolm Turnbull will closely follow Spartie’s advice and totally calm the punters down pointing out some proportionality is required.

    In the meantime, witnesses in the RC write Labor’s next election campaign for Shorten:

    Banking royal commission: AMP’s Catherine Brenner has ‘serious questions to answer’

    ASA director Allan Goldin is unimpressed at AMP’s commitment to launch an independent inquiry into governance at the company and how top executives misled the Australian Securities and Investments Commission (ASIC) and charged advice fees when no service was delivered.

    AMP is going to launch an independent inquiry in to the ‘Independent Inquiry’ they launched and used to deliberately mislead ASIC.

    No worries – I have absolute confidence that Turnbull will steady the ship and get the nation back on course.

  19. Habib

    I haven’t used credit in any form for over two decades, it’s a piece of piss. I use offshore banks a bit, locally I separate my income streams so taxable can be minimized and untaxed used for living expenses. No real effort required, and credit unions and the like are limited to what shenanigans they get up to, and all members are shareholders so the board can be iced without a quiver.

  20. Justin

    You can’t reduce all bad behaviour with a proportionality argument that something is likely worse somewhere else and not being investigated. Where would this end?

  21. Ƶĩppʯ (ȊꞪꞨV)

    Anyone who trusts a bank is asking to have their eyes plucked out.

  22. feelthebern

    I haven’t used credit in any form for over two decades, it’s a piece of piss.

    Habib, what is it with you wogs & cash?

    h/t the castle.
    ps, no way the castle would be made today.

  23. Gengis

    When I left school in the mid 1960’s those that could not go to University, get a trade or run their family business went into the financial industry. Get an imbecile looking at an easy bucket of money and what do you think happens. Now, one bank discovers what the other financial institutions are doing to make easy money and they just follow suit in a more aggressive manner.
    It is the complete break down in moral fiber that pervades our society with progressives in charge!

    Royal Commission into the Renewable Industry anyone?

  24. Royal Commission into the Renewable Industry anyone?

    Only when Hell freezes over, or the planet, whichever comes first. Given recent evidence, the latter is likely to happen first. But even then, I wouldn’t hold my breathe on a RC.

  25. Dr Fred Lenin

    Suggestions for the RC industry.
    An RC into politicians corruption .
    One into muslim migrants suitability.
    One into African gangster “refugees” suitability.
    One into the climate scam industry and its beneficiaries.
    One into the u.n. Scam and beneficiaries.
    One into the destruction of the armed forces and police .
    One into academics funding and corruption .

  26. Squirrel

    “Absolutely positively, the bad behaviour identified at the Banking Royal Commission is terrible and abhorrent. But it is not news and seems to have nothing to do with actual banking.”

    Time will tell – if the Royal Commission doesn’t get to it, rising international interest rates and the inevitable next recession (or worse) will expose the “she’ll be right” mortgage lending standards of the Australian banking system, and the effectiveness of its regulators.

  27. 3d1k

    Thus far the RC has demonstrated that some rogue financial advisers motivated by the new revenues/personal bonus nexus on occasion provided advice not in the best interests of the customers and/or in contravention of the relevant Acts.

    The banks were too slow to terminate the services of these advisers and particularly in the case of AMP, slow or perhaps even negligent when it came to advising clients of poor advice and remediating client financial position.

    The advice today from ANZ that approximately 5-10% of its audited files demonstrated detrimental advice of varying degree of severity (higher proportion from some broker networks) indicates that whilst far from ideal is not as widespread nor as catastrophic as much media chooses to present.

  28. that approximately 5-10% of its audited files

    How many files were audited? 10, 100, 1000, 10,000?

  29. Myrddin Seren

    Just skiting to the Good Lady Wife – the latest development exactly as I predicted:

    AMP faces likely shareholder class action

  30. John

    Or, how about a Royal Commission relating to the number of seriously habitual criminals that have been released on bail by Judges on to re-offend and how much this is costing the community.

  31. Splatacrobat

    Banking royal commission: AMP’s Catherine Brenner has ‘serious questions to answer’

    What’s with all the diversity picks being thrown under the bus?
    I thought WGEA promised the more women on boards, the more honest, upright, ethical, and stock soaring juggernauts the company will be?

    Who knew the womines were just as big a dicks as the old boy’s club they were sworn not to be like.
    What they railed against, they eventually become.

  32. Anyone who has ever had a bank loan, is watching this RC with a soothing feeling of pleasure.
    I feel a whole lot better knowing how each of my former bank managers will be reacting to each & every revelation (& the implications thereof)

    And the RC is only into the small stuff so far, financial advice to Granny, & a few car loans & the like.
    Can’t wait until it gets to the good stuff!

  33. H B Bear

    I thought WGEA promised the more women on boards, the more honest, upright, ethical, and stock soaring juggernauts the company will be?

    Yes, what an utter crock that has proved to be. Toxic femininity.

  34. Roger.

    Is there to be a royal commission into accidental deaths and injuries within the health system? How about a royal commission into the number of children graduating school being unable to read or count? These things happen. They are terrible. They are horrible. But some proportionality please.

    In the first case, why not? What is more valuable than life and the proper enjoyment of it as far as circumstances permit? If “accidents” in the health system are above acceptable levels that needs to be investigated with the powers only a RC can wield.

    Likewise education; let’s see theorists, curriculum writers and educators whose failures condemn young Australians to a life time of unemployment and poverty subject to close scrutiny. I can hardly think of a more worthy subject of robust investigation than the education sector.

    The cost of Royal Commissions in such instances would seem to be a prudent investment in our nation’s well being.

  35. Neil

    Surely some of this is buyer beware?

  36. Surely some of this is buyer beware?

    Some of what is coming out is criminal conduct. Illegal.
    There should be people go to jail as a consequence of this RC.

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