Like Prime Minister Malcolm Turnbull and most of his colleagues on the Treasury benches, Morrison voted in Parliament 23 times between April 2016 and June last year to block a royal commission into the banks. (The AGE)
An amazing demonstration of his complete inability to understand the sordid realities of the financial advice sector. A terrible shortcoming for Treasurer. He should fall on his sword.
There will of course be innumerable quotations that will come back to haunt him about why we didn’t need a Royal Commission. Morrison could not possibly have known how quite badly things were going to turn out but he should have had some idea. And now it looks as if he’s been covering up for some pretty dodgy behaviour on the part of our major financial institutions.
And he is looking incredibly stupid, and that’s not a very good look for a Treasurer.
The difficulty here is that he is now suggesting the banks should be facing exceptionally large fines. This is not a particularly smart idea because it punishes the shareholders who are, by and large, the superannuation funds to represent the vast bulk of ordinary Australians.
The people who should be punished are the financial advisors and executives who were designing the remuneration packages that led to the appalling behaviour that ruined the lives of many of the clients of the major banks.
Marianne Perkovic, the head of the CBA’s private bank did not impress Royal commissioner Hayne with her answers
These scumbags should be named and shamed publicly. Their photographs and their names should be displayed on the Internet and they should be made to face the Royal Commission to explain their behaviours.
. And then if necessary they should be faced with criminal charges.
But imposing fines on the banks because one section of the banks’ activities, and very small section at that, was rotten to the core, is no justification for imposing fines totalling hundreds of millions of dollars on the entire sector. This will lead to a crisis of confidence in the banks that will be detrimental to the economic health of our banking system.
The best thing for Scott Morrison to do is to say, “I got this one really badly wrong. This is the ultimate demonstration of my own competence as a treasurer. This happened on my watch. Please accept my apologies and my resignation.”