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