Banks get thrashed with feather dusters

Now that the CEOs of the Big Four banks have been questioned by the Parliament’s Economics Committee it’s time to ask, what now? The Committee is a House of Representatives organ. It’s generally acknowledged that the heavy hitters for this kind of exercise are in the Senate. These mega-salaried CEOs are teflon-coated, obviously well-briefed, and it’s reasonable to wonder whether anything will change as a result of the hearings. Not much, I suspect.

David Gallagher of the Centre for International Finance and Regulation, probably a conservative outfit, says:

    The government is using the exercise as a classic case of retail political management, being seen to be keeping our major banks accountable while the Opposition calls for a royal commission into the banking industry.

Gallagher is arguing that the wrong-doings of the banks are not substantial or endemic enough to warrant a royal commission, and that our regulatory system is world-class and fit for purpose. I think he should have been listening to talkback radio over the last few days. Continue reading Banks get thrashed with feather dusters