Banking Royal Commission results

Eagarly anticipating the results to be delivered today! Officially the news should come to us 4pm Monday but wondering if there is any chance we may know anything sooner...

Trust and credit at the core of the Government's royal commission response

 

Hopefully recommendations will be implemented in full

 

There are ways to find out what the insiders know ,but going by the sea of red in front of me and as from my simple understanding most who were in charge of the risk management teams from those that sit high on the various boards still have their jobs and the same less imaginative ideas..

Just another day for the units holder with their heads stuck in the vice with their pants down and MR Market is there just waiting ..Myself I don't care less six months too a year this will all be history ..

 

I guess more intetested in terms of how the results would impact on general sentiment as well.

 

Will the government release the report? Didnt the last one take a further 3 months to be released to the public?

 

Don't know but with most the ex dividends date is not that far away then the payment date a few weeks later so one would think as most banks dividends start from now for those that wait for this time of year would come out from the shadows unless they understand the growing separation of the ethical and the legal....

Just a quick question ,do you invest in bank equities outside your super ?,if so and depending on the time frame what do you think..

 

I was under the impression that the government was going to withhold for an additional week or so to digest the information? Labor were getting very frustrated.

What will be the most interesting is how long it takes any recommendations to filter through as either sentiment or reality. I don’t believe it will have an immediate impact.

- Andrew

 

I'm hoping that the government will put an economic and practical filter over it and implement the recommendations with a view to the best outcome for consumers and the economy.

Take living expenses in the assessment of a loan. The commissions recommendation is likely to be that there should be no reliance on HEM indexes and individual consumer spending patters should be analysed as part of the loan application.

Firstly this increases the cost of approving a loan, which will be passed onto the consumer.

Secondly, taken to the extreme, a lot of people won't be able to qualify for a loan that they could otherwise afford. There's no consideration given to the fact that about 98% of people will adjust their spending habits if things get tough.


Most of the recommendations won't actually need the government to do anything about them. The real problem has been the lack of enforcement. Legislation and codes of practice already exist that cover a lot of the problems. There simply hasn't been decent oversight of the banks and proper enforcement of that legislation.

 

yes but seeing how regulators have been captured I am not too optimistic, I would much prefer if banking could become boring again, more sustainable and less reliant on taxpayers backstop.

 

When i was referring to sentiment it was more so from a credit perspective and how it may influence auctions and purely property market as opposed to shares. I know this may take a long time to play out however. Nope i don't have any shares in banks!

 

Last i heard was over the weekend (to think about and release Monday ), but happy to be proved wrong..

 

Public release is Monday or Tuesday

 

This whole RC (Royal Commission) is becoming a RCF (Royal Cluster ****).

Lets see

Commissioner: need to make harsh recommendations because we've heard all these terrible stories over last year

Labor: We'll implement all recommendations even though we don't know what they are or what real world impact they may have. Let's get in power off bank bash

Liberal: Oh geez.... we've got to do something.....

Banks: Whats going on, whats going on, lets not do anything in case we get more blame

APRA & ASIC: we looked real bad. Lets start being bad ass.... but government won't give us any money. And we kept losing in court! ****!

 

I once read something about the various reviews of financial planning over the years. There'd been 4 government reviews about financial planning. The article indicated that every review indicated that the quality of advice had fallen significantly since the previous review.

What had occurred was that with every review, more regulations were introduced, making financial planning more about complying with government oversight and less about customer outcomes. Applying these principals to lending might be taking the approach that nobody every is put in a position where they would default on their mortgage, because only the super wealthy can afford a very modest mortgage. Never mind that most people are forever locked out of home ownership.

Imagine if banking became boring again...
* The bank manager would have ultimate discretion over who does and does not get a loan. There's no benchmarks, just one person who may or may not be the generous sort. This means that some loans will have high default rates, whilst other perfectly good loans never get approved.
* Women need permission from their husband or a guarantee from their father to be able to get a loan.
* We'd have 4 banks monopolising the market. The margin on rates wouldn't be 2.3%, it would be 5% or more.

The problem with Royal Commissions is they only look at the bad things within the subject matter. You need to consider the effects of legislating to the point where absolutely nothing can go wrong.

At the end of the day, the ones who will pay the highest price for this Royal Commission, is the average middle income consumer. The biggest winner will be the big banks, because whilst they're screwing you over, they'll make sure they can still tick the boxes to comply with the laws.

 

They were not locked out (home ownership rates have fallen consistently since 1981) when banking was boring they just had less debts.

 

Edit. Results will be released at 4pm after markets are closed on Monday.

 

Reporter - Can we get a handshake or something......

Hayne - Nope

Frydenberg - Awkward laugh.

Camera's clicking away for a few seconds .......

Reporter - Maybe we could get you just shifting it to him?

Hayne - shakes head NO


Pretty frosty stuff from old mate Kenneth


ABC Politics on Twitter

 

so when is a good time to buy Bank shares?

 

Then it shouldn't be an issue for them to adjust their spending habits for a year before taking out a loan either.

Several young couples (in their late 20s) I know have already started to dial down their spending to get a loan:
- no more purchase of coffee from a shop, just make their own for free in the office
- no more movies, just rent DVDs to watch at home.
- no more unnecessary upgrade of gadgets, the current one is still working perfectly
- no more expensive overseas trip
- delaying the birth of a kid

And one guy even told me he found the new frugal life style healthier.

 

You had me untill DVD’s