Royal Banking Commission finally called

The CEOs of all major Banks in the country have written to the government and called for the Royal Banking Commission to be established. Pretty smart on their part to get ahead of the motion currently before Parliament with the Nationals all but confirming they would cross the floor in support.

Ninemsn article: Malcolm Turnbull announces a royal commission into the banks

So..... time to buy bank shares??

 

Yes, agree, a very smart move by the heads of the big banks. Get on the front foot and ask for exactly what you want rather than have terms thrust upon you... Make it look like you are playing ball to the public and doing it in the interests of the nation but to ask to dictate the rules....

Also clever to ask to have the non ADIs included too.

Overall, it's going to cost the Australian banking sector a lot of time and money to do, but asking for this deadline of sometime in 2019 would limit the cost of it.

Of course there would be quite a few smart people within the banks who came up with and created the motion of submitting this request!

Also getting the all 4 major bank CEOs and Heads of the Boards to sign as a sign of unity within the sector.... For this the major banks will get 10/10 for a sign of solidarity... we know they are 4 of the biggest companies on the ASX. They are big and powerful and by doing this, they wield a lot of power... the government cannot ignore them! Very clever.

 

Bank shares plummet following Royal Commission announcement.

Bank shares plummet as ASX wades through banking commission news

(source: ninemsn article)

 

alright, higher rates to follow and cheap easy lending day may be behind us

 

Hmmm. I don't think fluctuations of a few % really constitutes a "plummet".

Tell me when there is a real bargain...

 

Hahaha, agreed. My colleague just said the same thing.

 

Cheap easy lending day ended a couple of years ago. I just got approved for a $150k loan. I have never had to work so hard to borrow so little. 2 years ago I got approved for almost triple that no problem. I didn't take the loan but my finances are in much better than then: more assets, less debt, higher income. And I still struggle to borrow $150k. Times have changed my friend.

 

So true and all the documents that they request! Waiting on receiving my equity release and hoping that I can receive that prior to Christmas.

 

The Royal Commissioner will lay the boot in over financial planning services (which the banks have sold out of so all the banks will pat themselves on the back) and the risks they have exposed the economy to regarding apparent unrestricted lending for property. The banks will then cut fees paid to brokers and this will make them look like they are acting responsibly by adopting the outcome of the royal commission. The findings may also find that the banks have acted well to reduce fees - eg ATM fees, monthly fees etc....A big back patting exercise.

I fear the Royal Commission will also consider grounds for banks to manage super. And compete more aggressively with industry funds. Likely a Lib Nats way of focussing all the bad on the union dominated industry funds which operate like a secret sect. Peanut Shorten wants the unions to also manage and own "banks"...Socialism at its finest. The supermarket giants will push for retail banking presence yet again.

Yes Minster couldnt write a script like it. Its all been done before.

 

CBA went down very quickly once the media hit the screens just over 2% -and it would have knocked the stuffing out of anyone with fragile confidence who bought in a day or so ago above $81.00..
http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw

 

Total waste of time and energy... What on earth do APRA do? or for that matter ASIC with Company regulations...then there is the AFP if there are criminal activities? Where are the Fraud cases? All this does is signal to the world that Australia's banking system is corrupt.

 

Yes, unfortunately this royal commission could result in massive collateral damage to professionals outside of the banking sector...

 

I haven't borrow money for a while now, last time 200K for the stock market 3 years ago redraw out of my property it was approved in 24 hours

 

The Greens won’t be happy until Banks become charitable institutions.

As for the nation’s productive enterprises Politics has entered a dangerous stage in this country in how far parties will go to for political gain.

Despite overseas countries having their share of issues I’m much keener nowadays than in the past to also invest outside Australia.

 

Not condoning or endorsing any lack of probity on the part of financial institutions but I'm always mindful that when people lose money for whatever reason, it does seem to be human nature to attempt to place the blame elsewhere.

Hmm, did they sit down and, despite any advice on how wonderfully successful an investment may be presented, contemplate Yes, looks good but what happens if it goes pear shaped? Of course, the investor is never in it for the money, tax deductions, holidays on a beach in Fiji all the while wondering what the poor people do.

Gees, I'm cynical.

 

The general public are always the first to complain about lax lending standards...Then they go to borrow themselves (or their children do) and its the stupid banks are incompetent..."can you believe they ask for this and that. Don't they know me, how dare they ask so many personal questions".

 

Anyone who needs a loan in the next 5 years will regret that they supported a RC!! (and a change in government for that matter)

 

The final part of Royal Banking Commission to going to take over 12 months from now,and after going too several AGM's over the past few months ..I always come to the AGM'S early not for the food or drinks just to try and talk to the people within the risk management team as they walk table to table talking..

One told me just recently as the others told me they are quite comfortable with their positions ,but they all seem to hint the first part of next year will be crunch time..What crunch means is any ones guess but as the 4 pillars policy bans mergers between the big four banks and will not be around in ten years time..

 

You're so much the cynic

Nup.... You'll never get me on a beach or a warm climate.


BTW - what are the terms of reference?

When will they be announced?

Will anyone give a XXXX?