Sunday, 17 February, 2019

Tom Elliott makes a prediction in wake of Banking Royal Commission

Commbank is one of the banks under scrutiny.. Image Getty Images Commbank is one of the banks under scrutiny.. Image Getty Images
Laurie Berry | 07 February, 2019, 22:07

The Australian government is due to release on Monday the final recommendations of the independent inquiry that exposed systemic wrongdoing in Australia's financial sector previous year, likely leading to sweeping changes to the country's banking industry.

The inquiry uncovered banking practices where customers were charged about $1 billion in fees for no service, dead customers were charged fees, and people were given poor financial advice or bullied into buying inappropriate insurance and high-interest loans. The government also took advantage of public anger at the industry to pass a bank levy in 2017 that will cost the big four lenders and Macquarie Group Ltd. A$6.2 billion ($4.4 billion) over four years. The inquiry said it would be costly and disruptive to separate banks providing products and advice. "I don't think that the Royal Commission did anywhere near enough to cover what's needed there".

"There is time to give some very careful reflection as to whether we want to argue in favour of the status quo or move to a different position".

Australia's Federal Government has said it will implement the recommendations which include a dramatic shake-up of the mortgage broking industry. "Major Banks breathe a sigh of relief", suggests Citi. Pay and bonuses have been overhauled to focus more on customer satisfaction than sales targets.

"The price paid by our community has been huge and goes beyond just the financial".

"It's a scathing assessment of conduct driven by greed, which fell far below community expectations", Treasurer Josh Frydenberg said.

Mortgage brokers, however, were hit hard after the inquiry recommended banks should stop paying them trailing commissions - fees lasting the life of a product which were found to incentivise misselling.

Regulators also needed greater oversight after they were accused of working too closely with the banks.

The report made very strong criticisms of both regulators for failing to prevent malpractice in the industry.

Tesla cuts Model 3 price again as tax credit is phased out
Right now, our most affordable offering is the mid-range (264 mile) Model 3 with premium sound and interior at $44k. Tesla is cutting US$1,100 from the base price of its vehicle designed for the mass market, the Model 3.

"The soft recommendations of the Royal Commission final report is a clear win for the banks", UBS Group AG analysts led by Jonathan Mott wrote in a note.

However, wealth managers, whose reputations were shredded in the inquiry, were punished with IOOF Holdings Ltd stock closing down 4.5 percent and AMP sliding to a record low.

"At this stage, it does not appear to be the case".

"It beggars belief that a royal commission set up to look at the banks' failure to act appropriately has been turned around so that brokers are now potentially the biggest losers", Mr Bailey said.

"By the time of the review referred to in Recommendation 2.3, these exemptions from the ban on conflicted remuneration will have been in place for nearly 10 years", Commissioner Hayne says. Prime Minister Scott Morrison had also warned that tighter lending rules could have triggered an economically damaging credit freeze.

"That is, there remains a reluctance in some entities to form and then to give practical effect to their understanding of what is ethical, of what is efficient, honest and fair, of what is the right thing to do", the report said.

The Australian Banking Association (ABA) is expected to hold a press conference shortly.

NAB Chairman Ken Henry and CEO Andrew Thorburn.

The big banks, insurers, pension funds and regulators who oversee the financial industry are bracing for a brutal summary of their misdeeds and weaknesses, and a list of tough recommendations including possible criminal charges.

Recommended

Trump squabbles with Democrats before speech on unity Trump squabbles with Democrats before speech on unity White House officials have said the speech will emphasize unity and will feature the President's priorities on immigration reform. Despite the shutdown, the US economy added a robust 304,000 jobs in January, marking 100 straight months of job growth.

West Ham investigating racist abuse of Salah West Ham investigating racist abuse of Salah The club knows how to work and says it can not accept these kind of things in the game". We are an inclusive football club.

Aaron Judge Would Welcome Bryce Harper On Yankees Aaron Judge Would Welcome Bryce Harper On Yankees Yankees third baseman Miguel Andujar and shortstop Didi Gregorius were being honored alongside Boone at Tuesday's awards dinner. But I don't know. "Yeah, I do think things can change, and your target list evolves over the course of the offseason".

Woman starts petition to have Miss Curvy contest cancelled Woman starts petition to have Miss Curvy contest cancelled Kiwanda at the launch of the campaign. "Uganda is endowed with attractive women. He said it would be used to promote tourism in the East African country.

Bud Light touches nerve with corn syrup Super Bowl ads Bud Light touches nerve with corn syrup Super Bowl ads The Bud Light commercial starts out with a king and queen at a jousting event enjoying Bud Lights, while they and crowds of spectators cheer on the "Bud Knight", who faces a mysterious opponent.

Kristaps Porzingis reportedly wants Knicks to trade him Kristaps Porzingis reportedly wants Knicks to trade him The Knicks popped up in the trade rumors, with Porzingis being mentioned as a possible part of a package for Davis. Kristaps Porzingis isn't likely to suit up for his new team this season.

Here is why women are mentally sharper than men in old age Here is why women are mentally sharper than men in old age They found out that the algorithm yielded brain ages an average of 3.8 years younger than the women's chronological ages. The answer has been found through research which shows that time wears differently on women's and men's brains.

Tim Paine wants Steve Smith and David Warner to makes Ashes return Tim Paine wants Steve Smith and David Warner to makes Ashes return Warner also returned home from Bangladesh to have an injured elbow assessed, but it is not believed to be as serious as Smith's. Cricket Australia (CA) wants to ensure that he is fully fit for the Ashes series, which starts on August 1.

Freezing rain causes power outages, ices Midwest roads "It started out with ice pellets, that turned to snow and then we saw some rain and now a little bit of freezing rain", he said . The city has said that the second round of salting on local roads will begin overnight Thursday and continue for up to 24 hours.

RBI Slashes Repo Rate by 25 Basis Points, Changes Stance to 'Neutral' RBI Slashes Repo Rate by 25 Basis Points, Changes Stance to 'Neutral' The central bank also noted that "the output gap has opened up modestly as actual output has inched lower than potential". As headline inflation is way below target, MPC could have given 50 bps relaxation to industry .

An Incredible Video Captures Meghan Markle Gasping As Her Baby Kicks An Incredible Video Captures Meghan Markle Gasping As Her Baby Kicks The friends sought to set the record straight on everything from her relationship with her dad to an up-close view of her wedding. Thomas Sr. has not personally contacted her even if she has kept the same phone number, said the friend.

Adam Levine Gives Critics A Shout-Out After Super Bowl Halftime Show Adam Levine Gives Critics A Shout-Out After Super Bowl Halftime Show The group was also joined by Travis Scott and Big Boi , but most of the criticism was pointed at the headliner - Maroon 5 . I find Kendrick Lamar way more interesting than the Stones, the Who and Neil Young these days.

Six Nations: Ireland's CJ Stander suffers injury blow Six Nations: Ireland's CJ Stander suffers injury blow If he is ruled out for four weeks, that would see him missing Six Nations matches against both Scotland and Italy this month. Quinn Roux and Ultan Dillane will battle it out to replace Toner, with Munster's Billy Holland already drafted in as cover.

LeBron James Sounds Off On Instagram After Harrison Barnes Traded Mid-Game LeBron James Sounds Off On Instagram After Harrison Barnes Traded Mid-Game Barnes initially signed with the Mavericks during the 2016 offseason after beginning his career with the Golden State Warriors . It looks like poor Harrison Barnes had no idea he was headed to Sacramento to play alongside De'Aaron Fox and Buddy Hield.

Fan 'killed by foul ball' at Dodgers baseball game Fan 'killed by foul ball' at Dodgers baseball game She was in the stands August 25 when a ball hit by a San Diego Padres player sailed over protected netting and struck Goldbloom. Goldbloom, a mother of three and grandmother of seven, was a "true fan" of the Dodgers , her daughter said.