Prime Minister Malcolm Turnbull has simultaneously broken the hearts of the nation's best remunerated bankers and most ardent socialists by announcing the government will establish a royal commission into the banks but that the exercise "will not put capitalism on trial".

Whatever the result for the free market and means of production, the path to establishing the inquiry has already proved a major trial for Turnbull's government. This morning's News Corp papers outline the final machinations that led to the government's backflip, with cabinet ministers Kelly O'Dwyer and Scott Morrison failing to talk down Nationals MPs set on the inquiry. According to The Australian ($), O'Dwyer had been working on a contingency plan in case those efforts failed.