Tag: Commonwealth Bank

Yes, the Morrison government has said meekly, to everything the banking royal commissioner Kenneth Hayne has recommended. Banking royal commission final report released – politics live Read more So it’s yes to more than 24 potential prosecutions (only Westpac escapes), earmarked carefully by Hayne but ultimately left to the discretion of the regulators – which will be a relief to the government, rather than particular bankers being named and shamed; yes to ending conflicted remuneration; yes to an overhaul of mortgage broking; yes to a regulator to watch the corporate and banking regulators (and a possible new independent prosecutorial body if they fail to get their act together); yes to Asic becoming a regulator that actually likes going to court; yes to an industry-funded compensation scheme of last resort. There is one maybe in the government response and that relates to remuneration for mortgage brokers. The commissioner says the time has come to do more than say sorry for the past, and make reparations. With a big mop-up job to implement, the treasurer Josh Frydenberg, as well as trying to neutralise a dangerous political fight, has taken the opportunity to project some emotional intelligence with the government response. “My message to the financial sector is that misconduct must end and the interests of consumers must now come first. From today the sector must change, and change forever.” All very well to say in the world of the soundbite. The National Australia Bank comes in for a particular kicking. Hayne says the delightfully apt “twin peaks” structure of Apra and Asic – where prudential regulation is separate from conduct regulation – should remain. But a big yes to Hayne makes it harder for Labor to prosecute a “government cosying up to the banks” narrative.