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Royal Commission Into Banks

Tisme

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I thinking there will be a lot pf bank tellers worried they will cop the blame for the criminal behaviour of anyone, but the LNP elite base in charge of the four pillars.:D
 
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I thinking there will be a lot pf bank tellers worried they will cop the blame for the criminal behaviour of anyone, but the LNP elite base in charge of the four pillars.:D
Bank tellers, what are they ?

:D
 
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ONCE UPON A TIME... we had publicly owned Commonwealth Bank and State Banks. They were established to offer effective competition to the private banking system which was far too self interested to offer the broader public a fair deal. While these banks stayed in the market place the privately run banks had a benchmark of behaviour, costs and wages.

When Governments privatised the banks the bench marks disappeared. They only benchmarks currently in place are the amount of profit that can be created by
1) Slashing employee numbers
2) Creating new and imaginative fee structures
3) Extending credit levels in whatever way necessary to make a buck regardless of risk
4) Creating new financial offerings to shear the sheeple ie financial planning, super plans

The prize for this progress ? Being able to command the highest salary package as a CEO.
 

CanOz

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You lot are real socialists aren't you? I mean i'm all for paying taxes to get good schooling and healthcare for the masses, but the state has no business running banks ffs!:eek:
 
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You lot are real socialists aren't you? I mean i'm all for paying taxes to get good schooling and healthcare for the masses, but the state has no business running banks ffs!:eek:
The private sector has no business ripping people off either.

The banks have no business asking the government to guarantee their funds when trouble hits the economy.

Private sector greed in the finance sector has the capacity to adversely affect all of us so there needs to be strict regulation. I wouldn't object to at least one bank being government owned for the sake of consumer confidence.

Let the others take the risk of lending to dodgy businesses.
 

CanOz

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The private sector has no business ripping people off either.
Agree, but this should be regulated by competition and watched over by the regulators.

The banks have no business asking the government to guarantee their funds when trouble hits the economy.
Agree, again businesses, including banks need to be regulated to prevent getting to a stage where they need to be bailed out in order to prevent a systemic risk/run on the banks.

Private sector greed in the finance sector has the capacity to adversely affect all of us so there needs to be strict regulation.
Agree, you can't trust bankers....anywhere

I wouldn't object to at least one bank being government owned for the sake of consumer confidence.
Why i don't agree with this, is because there are very few shining examples of Governments managing anything well. Seriously, a private business reporting to shareholders, with good corporate governance, has a better change at turning a profit effectively and efficiently.

Let the others take the risk of lending to dodgy businesses.
So your Government bank would only lend to 'good' businesses'? While all the time the RBA (a Bank Governed by a board made up of mostly Government) is lending to the other banks:confused:
 

orr

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ONCE UPON A TIME...

The prize for this progress ? Being able to command the highest salary package as a CEO.
It will take me a short time to locate the detail, But the salary of the last public servant to administer the Commonwealth bank is a very interesting figure to compare to criminal carpetbaggers that now fill the 'free market positions' of bank CEO's today.... Someone feel free to beat me to it.

It's the LNP's unstated objective to make sure that there is NO Royal Commission into banks and Finance sectors. To have it force fed by public fury on their watch is great schadenfreude.

Morrison's shrill entreaties of foreign investor distemper over such in inquest says it all with regard to the true contempt he and the LNP business shills have for the mug local.
 
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ONCE UPON A TIME... we had publicly owned Commonwealth Bank and State Banks. They were established to offer effective competition to the private banking system which was far too self interested to offer the broader public a fair deal. While these banks stayed in the market place the privately run banks had a benchmark of behaviour, costs and wages.

When Governments privatised the banks the bench marks disappeared. They only benchmarks currently in place are the amount of profit that can be created by
1) Slashing employee numbers
2) Creating new and imaginative fee structures
3) Extending credit levels in whatever way necessary to make a buck regardless of risk
4) Creating new financial offerings to shear the sheeple ie financial planning, super plans

The prize for this progress ? Being able to command the highest salary package as a CEO.
If my memory serves me correct, The Commonwealth Bank was owned by the Government and created competition and control of the banking system very well...Private banks dare not step out of line for fear of going out of business and the system worked very well until, in their wisdom, The Labor Government at the time decided to sell the assets to fill their black hole.....

Now Bill Shorten wants to hold a Royal Commission into the banking system and it is going to happen because of the Labor Party's bad decision.:banghead:

Labor has taken control of the media (ABC/SBS) and their next effort will be to nationalize the banks followed by manufacturing, mining and agriculture.......They call it Democratic Socialism (Communism) CENTRAL CONTROL.

https://en.wikipedia.org/wiki/Commonwealth_Bank

Deregulation (1983–1991)
1980s logo

In 1989 the bank acquired 75 per cent of ASB Bank in New Zealand.

In 1991 the bank acquired the failing Victorian Government-owned State Bank of Victoria (est. 1842).
Privatisation and the Colonial merger (1990–2000)

Between 1991 and 1996 the Australian government fully privatised the Commonwealth Bank. The first share offer in 1991 was valued at $1,292 million, the second in 1993 for $1,700 million and the third was sold for $5,000 million in 1996.[7] It is a public company, but one of the few such companies in Australia whose official name does not end in 'Limited'.

In 1994 Commonwealth sold its shares in National Bank of Solomon Islands to Bank of Hawaii.

In 1994, Commonwealth took a 50% share in PT Bank International Indonesia.

On 10 March 2000, the Commonwealth Bank and Colonial Limited announced their intention to merge, with seven Commonwealth Bank shares being offered for twenty Colonial Shares. The merger received final approval from the Supreme Court of Victoria on 31 May 2000 and was completed on 13 June 2000. This brought into the fold Colonial’s stake in Colonial National Bank, the former National Bank of Fiji. The bank also acquired the remaining 25% of ASB Bank.

Banking opportunities in Asia saw the Bank in 2000 acquire full ownership of PT Bank International Indonesia and rename it (PT Bank Commonwealth). This bank now has over 16 branches and has opened several FX shops to cater to Commonwealth Bank clients who are tourists in Bal
i.

Now then, which party was in control of government 1990/1996?

The Labor started the Commonwealth Bank and the Labor Party ended it.
 
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ONCE UPON A TIME... we had publicly owned Commonwealth Bank and State Banks. They were established to offer effective competition to the private banking system which was far too self interested to offer the broader public a fair deal. While these banks stayed in the market place the privately run banks had a benchmark of behaviour, costs and wages.
Ironically, it was the government owned banks that went to the wall in the last recession. Even Westpac, the most impaired private bank at the time, never got close to blowing itself up like the state banks. If that was the benchmark, no thanks.

IMO, I think we're coming to the end of the era of big bank profits and high returns. It will take the better part of a decade to play out though.
 

PZ99

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If there's a RC clearly John Dyson Heydon will be the Govt's first pick for Commissioner :)
 
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Why i don't agree with this, is because there are very few shining examples of Governments managing anything well. Seriously, a private business reporting to shareholders, with good corporate governance, has a better change at turning a profit effectively and efficiently.
The Commonwealth Bank and Bank of NSW operated effectively for years under government control. It was only after they were sold off that they started ripping people off. A government run bank would likely have lower profits, but would be safer. There needs to be a safety valve in the financial sector.

So your Government bank would only lend to 'good' businesses'? While all the time the RBA (a Bank Governed by a board made up of mostly Government) is lending to the other banks:confused:
I would expect a good government run bank to concentrate on the safer consumer market and to do due diligence when it lent it's (our) money and ensure that there would be good expectations of getting the money back from profits of the businesses it lends to rather than fire sales of the assets after they go broke.
 

CanOz

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The Commonwealth Bank and Bank of NSW operated effectively for years under government control. It was only after they were sold off that they started ripping people off. A government run bank would likely have lower profits, but would be safer. There needs to be a safety valve in the financial sector.
Really, was they were profitable? How profitable? How do you know they were efficiently using their capital? I'm not saying they weren't, I'm just skeptical as to why they would be privatized if they were doing so well.

I would expect a good government run bank to concentrate on the safer consumer market and to do due diligence when it lent it's (our) money and ensure that there would be good expectations of getting the money back from profits of the businesses it lends to rather than fire sales of the assets after they go broke[
That 'safe' consumer market is what nearly took down the global financial markets, its not the market, but the risk involved in any lending book, be it consumer or corporate. I think what you're trying to say is that a government back may not take the risks that a private bank might, in order to leverage up their exposure. I get that.
 
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Really, was they were profitable? How profitable? How do you know they were efficiently using their capital? I'm not saying they weren't, I'm just skeptical as to why they would be privatized if they were doing so well.
They were privatised because they were doing well and there were people wanting to buy them, and the government needed cash to pay off debts.

If they were not profitable why would people want to buy them ?
 

Tisme

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He told ABC radio’s Fran Kelly: “He voted against it a year ago, Fran, but apparently in the eve of an election when there’s a few reports about banks, Bill Shorten is up there in his ill-fitting suit, puffing his chest up, and saying we need to thump the table. This is just classic political distraction.

Think about people offshore. What sort of message do you think Bill Shorten saying there needs to be a royal commission into the banks sends to the international community about confidence in the Australian banking system?”

I thought it was taboo to think of the people offshore coz they are terrorists looking for a free lunch. ;)

Morrison is worse than Noco in blaming Billy for everything short of causing WWII :D


flip side:

Mr Shorten accused the government of “selective hearing” after it zealously launched a royal commission into trade union governance.

“If there was a building worker, a tradie, then the government is over them like a rash examining their behaviour.

“But the top end of town, the banks, the government is so quick out of the blocks to rule out a royal commission, it’s breathtaking.”
 
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They were privatised because they were doing well and there were people wanting to buy them, and the government needed cash to pay off debts.

If they were not profitable why would people want to buy them ?
Interesting question. So what is your understanding of the reasoning behind the purchase of State Bank of Victoria by the Commonwealth Bank?
 
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The Commonwealth Bank and Bank of NSW operated effectively for years under government control. It was only after they were sold off that they started ripping people off. A government run bank would likely have lower profits, but would be safer. There needs to be a safety valve in the financial sector.
How do you explain the 60% decline in net interest margin since privatisation? How would a government owned bank be safer when the most recent instances of bank failure in Australia have been government owned banks.

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