Dear Senator Cormann you are on record last year by stating that there will be no Royal Commission because there are too many and they cost too much. The cost should not determine the need!
You were heard on Sydney radio stations last Wednesday 6 April,2016 stating that there will be no Royal Commission into the banking system because there exists a robust system with strong regulation. Moreover, the banks have a social responsibility to its customers and the community.
Firstly, Senator Cormann I was not aware that you speak on behalf of the Federal Parliament with authorisation to make such statements. You don't have the report from the current Joint Parliamentary Inquiry into the constructive defaults of loans. Your negativity on a Royal Commission into banking would therefore be without foundation.
Secondly, Senator if you think that the banking system is robust with strong regulation then please explain why the Commonwealth Bank ( to name but one bank) is guilty of maladministration/fraud regarding:
i) the Storm Financial scandal,
ii) the financial planning scandal,
iii) the constructive defaults and claim of fraud following the Bankwest takeover and the financial suffering and ruin by hundreds if not 1000 of Bankwest commercial customers,
iv) the criminal act by way of the $76m fraud of customers loans in Victoria and the Bank's cover up of this.
v) the Comminsure scandal
vi) Etc.
Ask your self a simple and single question. If the Commonwealth Bank acquired Bankwest on 19 December 2008 when the Bankwest was valued at $3.4 billion and you paid only $2.12 billion for it, then how would you adjust for the discount? In business you would probably write down its assets. Perhaps the Bank manufactured loans ( constructive defaulting of Bankwest loans ) as one part of a strategy to adjust for the discount. There are many other theories why they did it and only a Royal Commission will find out.
Finally, Senator if you think that the banking system has respect for Government then consider the following event. Last year when I was in Court against the Commonwealth Bank trying to argue my case, I raised the statement made by the respected Senator Egglestone in Parliament prior to his retirement. This was highlighting that the Commonwealth Bank had to do something about Bankwest because it created funding and capital issues for the Bank.
The barrister representing the Bank stated..." who cares what Senator Egglestone said, who cares what parliamentarians think." This barrister was recently appointed a Judge by your Government.
Senator the Australian public look and rely on its elected Parliamentarians to be a true and willing representative of them. The victims of the above cannot match the deep pockets and influence of the banks to seek compensation; thus the wish of the banks to continue to debate our claims through the legal system. Self regulation and the established regulators of the banking system have failed us. They either don't have the spunk or their terms of reference is limited.
Sincerely,
Trevor