Banking Royal Commission

[easy_tiger]

So there must be a 'royal commission question answering technique consultant' making sh!t loads of money for jam

out of this RC. They are probably called "RC solutions"

Every single banker and insurer have hired them and they go

'just answer YES when they ask if you did something really really dodgy, and NO when they ask if you think that was reasonable'

and then nothing really will happen to you

every single witness ive seen goes like this

RC: so you charged dead people for life insurance premiums, even after you didnt pay out when they died?

Banker/Insurer: Yes

RC: do you think that was ethical?

Banker/Insurer: No

and off they go.

 

[MD Jazz]

RC: so you charged dead people for life insurance premiums, even after you didnt pay out when they died?

Banker/Insurer: Yes

RC: do you think that was ethical?

Banker/Insurer: No

and off they go.

Guess they assumed as the were dead they didn’t need the money

 

[Brodders17]

Guess they assumed as the were dead they didn’t need the money

seems a fair assumption.

 

[OldTiger1967]

One of the Big 4 Banks admitted to breaking the law 40,000 times, yet nothing to date has happened - yes there had been a referral to the DPP but no charges have been laid.

Why? If you or I broke the law that many times we would be arrested immediately. If our mighty club Richmond broke the law this many times the AFL would goose march the club out of the League.

But the Banks go on about their day to day business - the politics of this is extremely scary - remember the Global Financial Crisis? The Banks failing caused an horrific affect on the world economy and consequently governments all around the world propped up the banks with taxpayer money.

Should the Australian Big 4 Banks falter under the Royal Commission what will be the consequences on the Australian economy?

And there in lies the conundrum for Australia!

 

[Tagomi]

Funny thing was I was working in one of the Big Four as a contractor when the banks made the decision to push for the Royal Commission in order to stop the noise around it. Not the best decision in hindsight ;D

 

[DavidSSS]

They broke laws, I just don't get why none of the people responsible, ie: the board and senior management, haven't had cops in their office putting them in handcuffs. Oh, sorry, too powerful, no wonder they aren't getting arrested. I'm sure if any of us committed fraud (which is what they have admitted to in a Royal Commission) we'd be arrested on the spot.

DS

 

[tigertim]

They broke laws, I just don't get why none of the people responsible, ie: the board and senior management, haven't had cops in their office putting them in handcuffs. Oh, sorry, too powerful, no wonder they aren't getting arrested. I'm sure if any of us committed fraud (which is what they have admitted to in a Royal Commission) we'd be arrested on the spot.

DS

Yep, banks, state government, politicians get away with this crap.

 

[Baloo]

Funny thing was I was working in one of the Big Four as a contractor when the banks made the decision to push for the Royal Commission in order to stop the noise around it. Not the best decision in hindsight ;D

And just as the RC kicks off you flee the country.....

 

[Tagomi]

What can I say, the banks didn't want Antman on the stand.

 

[MD Jazz]

End result - massive increase in bank values, likely increase in profits. A couple of scapegoats and reduced competition in banking sector.

 

[tigerdave]

Credit Unions are the way to go!

 

[DavidSSS]

Who'd have thought you could obtain property by deception and stay out of gaol? Must help being a banker.

DS

 

[TT33]

Credit Unions are the way to go!

I agree tdave, I have used a Credit Union for over 35 years.

I used to bank with the SSB of Vic. & Commonwealth but they became so greedy & put so many fees & charges on for their "service" : I changed to a Credit Union. I also had some of my Super with the AMP & I got out of there for similar reasons.

I urge everybody to investigate the Credit Union option.

 

[tigerdave]

I agree tdave, I have used a Credit Union for over 35 years.

I used to bank with the SSB of Vic. & Commonwealth but they became so greedy & put so many fees & charges on for their "service" : I changed to a Credit Union. I also had some of my Super with the AMP & I got out of there for similar reasons.

I urge everybody to investigate the Credit Union option.

Agree TT.I worked at our local CU for nearly 30 years.Never understood why people never considered banking with a Credit Union.They provide everything the banks do and the fees & charges are nowhere near the insanity of the banks.

 

[easy_tiger]

End result - massive increase in bank values, likely increase in profits. A couple of scapegoats and reduced competition in banking sector.

Yep.

Noone goes to jail. Noone fined. No real new regulation.

Indeed, one of the mechanisms which promotes competition; mortgage brokers; cop it and will be regulated out of existence.

Then someone inside trades out of the leaked toothless RC findings and makes 20 mill.

*smile* me.

Everything is *smile*.

Even the last vestiges of hope i had for a not entirely inequitable society, is *smile*.

 

[MD Jazz]

Yep.

Noone goes to jail. Noone fined. No real new regulation.

Indeed, one of the mechanisms which promotes competition; mortgage brokers; cop it and will be regulated out of existence.

Then someone inside trades out of the leaked toothless RC findings and makes 20 mill.

*smile* me.

Everything is *smile*ed.

Even the last vestiges of hope i had for a not entirely inequitable society, is *smile*ed.

I reckon they may end up re-thinking the mooted changes to broker commissions etc.

Personally I would always use a broker and in a past life recommended clients to brokers (no kick back to me!). They usually have their clients interest at heart, and usually find the best rate/loan for the customer. The banks pay them so it costs me nothing. And, I have someone to contact for the life of the loan at no charge. Who may in fact move me to a better loan at some point if the opportunity arises.

Many don't understand there is quite a substantial amount of paperwork/compliance for brokers. It isn't as simple as many make it out, they can certainly make good money but they have a lot of admin.

Banks often lack expertise in this area, they usually take longer with paperwork and don't always provide the best options for the customer.

The smaller lenders like ING will find it tough if brokers are essentially phased out, meaning reduced competition/bigger profits for the big 4.

And I bet at some point we will get rate rises from the big 4 under the guise of increased "compliance" costs.

 

[TigerForce]

What Scott Pape said. Greed is like the mafia. You kill one section but re-grows again. Superannuation needs a REAL overhaul but it just won't happen.

 

[DavidSSS]

I agree tdave, I have used a Credit Union for over 35 years.

I used to bank with the SSB of Vic. & Commonwealth but they became so greedy & put so many fees & charges on for their "service" : I changed to a Credit Union. I also had some of my Super with the AMP & I got out of there for similar reasons.

I urge everybody to investigate the Credit Union option.

I've thought about using a credit union but have always been a little unsure about their credit cards which seem to be issued by a bank anyway.

What I've thought to do was to change to ME Bank as they are owned by the industry super funds rather than private shareholders, or even Bank Australia although I'm unsure as to their background.

Unfortunately I have been too lazy and stayed with what used to be a state owned bank, then again, since I just have my salary put in the bank, have limited savings and no loans (do have a credit card though) I'm probably not a very valuable customer anyway. I even committed the heinous crime of paying off the mortgage early and the mortgage was taken out so long ago there were no fees (remember, before bank deregulation, there were no fees, so, remind me again what was so good about deregulation, oh that's right, the banks would compete for my custom so I wouldn't suffer with one of those terrible passbook accounts which only paid 3.3% interest, now I get, ooh what was it, something like 0.001%, and, yes, the banks are stingy enough to go to a few decimal places).

DS

 

[easy_tiger]

I reckon they may end up re-thinking the mooted changes to broker commissions etc.

Personally I would always use a broker and in a past life recommended clients to brokers (no kick back to me!). They usually have their clients interest at heart, and usually find the best rate/loan for the customer. The banks pay them so it costs me nothing. And, I have someone to contact for the life of the loan at no charge. Who may in fact move me to a better loan at some point if the opportunity arises.

Many don't understand there is quite a substantial amount of paperwork/compliance for brokers. It isn't as simple as many make it out, they can certainly make good money but they have a lot of admin.

Banks often lack expertise in this area, they usually take longer with paperwork and don't always provide the best options for the customer.

The smaller lenders like ING will find it tough if brokers are essentially phased out, meaning reduced competition/bigger profits for the big 4.

And I bet at some point we will get rate rises from the big 4 under the guise of increased "compliance" costs.

Yep. No brokers will reduce competition

My 20yo son had a horrorshow with several banks recently and he went to a broker who walked him through a bewildering process, did way more work than she had to ( solicitors work) and got him sorted.

The bankers just nodded and said we let down our customers the whole commission

And then nothing happened to them, their share prices rebound, theylle pull their heads in for 2 years, and resume all the crooked *smile*.

Even the NAB boss, who was a bit adversarial, just had to resign, no doubt on a 10m handshake, a winery in the yarra valley and a seat on some ethics and standards board that pays a few hundred grand a year.

*smile* me.

I bet the aged care RC throws fairly powerless, poor philipino nurses (albeit sadistic or incompetant, same as the bankers) in the clink

 

[22nd Man]

I've thought about using a credit union but have always been a little unsure about their credit cards which seem to be issued by a bank anyway.

What I've thought to do was to change to ME Bank as they are owned by the industry super funds rather than private shareholders, or even Bank Australia although I'm unsure as to their background.

Unfortunately I have been too lazy and stayed with what used to be a state owned bank, then again, since I just have my salary put in the bank, have limited savings and no loans (do have a credit card though) I'm probably not a very valuable customer anyway. I even committed the heinous crime of paying off the mortgage early and the mortgage was taken out so long ago there were no fees (remember, before bank deregulation, there were no fees, so, remind me again what was so good about deregulation, oh that's right, the banks would compete for my custom so I wouldn't suffer with one of those terrible passbook accounts which only paid 3.3% interest, now I get, ooh what was it, something like 0.001%, and, yes, the banks are stingy enough to go to a few decimal places).

DS

Before deregulation you needed at least a 20% and often up to 50% deposit for a home loan.. And sometimes years of savings with the bank you wanted the loan from...no shopping around. Rates were set by the RBA.
If you were a business and wanted a loan the RBA told banks how much they could lend and to what industries. The local branch manager would have his allotment "spent" in the first three days of the month.
Some things were better ... No credit cards Opening hours 10-3, no ATMs, queues out the door 0n Fridays so everyone could have cash for the weekend, and it was easiest job in the world for reasonable pay and plenty of perks, no staff shortage.. ... Could leave school in year 10 and end up as CEO. Armed hold ups were a risk as security was non existent except for a rusty pistol in the accountants drawer.