In the end it needed to a letter from the banks themselves to allow Malcolm Turnbull to accept the inevitable and set up a royal commission into the banks -- or what the Prime Minister called "misconduct in the financial services industry". At 8.30 this morning, the big four banks released a joint letter to the Treasurer calling for an inquiry into themselves, arguing:
... It is now in the national interest for the political uncertainty to end. It is hurting confidence in our financial services system, including in offshore markets, and has diminished trust and respect for our sector and people. It also risks undermining the critical perception that our banks are unquestionably strong ... We now ask you and your government to act to ensure a properly constituted inquiry into the financial services sector is established to put an end to the uncertainty and restore trust, respect and confidence.
How much will the royal commission end up costing the banks?
A potential $1 billion refund request from ASIC will lead many to think the banks are being penalised. This is far from the case.
It’s time for a reckoning on FOFA
The major bank lobby group now wants to fix the Future of Financial Advice framework, but it was one of the major players in trying to water it down as much possible. It owes the community an apology.
Insurance companies confirm everything is hunky dory in insurance
The insurance industry is recycling an old defence used by the banks to ward off scrutiny — that its misconduct is the work of just a few bad apples. It will work about as well as it did for the banks.
Royal commission adds Howard, Costello to the banking hall of shame
The Hayne royal commission interim report is a missile fired at the neoliberal fantasy at the heart of financial services regulation in Australia.
‘Dishonesty and greed’: banking royal commission interim report leaves many questions
The interim report of the banking royal commission has been released and as expected it is harsh on the banks, AMP and regulators.