Banks never learn their lesson: Shorten
10 April 2016
http://www.9news.com.au/national/2016/04/10/10/06/asic-has-powers-to-penalise-banks-dutton
Malcolm Turnbull should tell the tens of thousands of Australians who have seen their money frittered away through financial scandals that there is nothing wrong with the banking system, Opposition Leader Bill Shorten says.
The prime minister has rejected Mr Shorten's call for a royal commission into the banking sector, saying financial services are already heavily regulated.
But Mr Shorten says the financial scandals keep happening. "Every time the banking sector has a scandal, they say they have learnt their lesson, but the lessons keep rolling out, sadly," the Labor leader told reporters in Melbourne on Sunday.
Mr Turnbull says Mr Shorten is just creating a distraction from the government's attempt to restore a construction watchdog.
"You already have very strong, powerful regulators there monitoring that (banking) industry and taking action," he told reporters in Sydney.
He said Australia did have a strong regulator in the Australian Building and Construction Commission as well, until Labor abolished it.
The government will attempt to restore the ABCC in a special sitting of parliament starting on April 18.
Liberal frontbencher Josh Frydenberg said he wasn't quite sure what Mr Shorten believes in because only last year he voted against a royal commission into the banks.
"He has shown he's not prepared to listen to a royal commission with the Australian Building and Construction Commission, so I just think this is a bit of populist politics," he told ABC Television.
He said the Australian Securities and Investment Commission, the Australian Prudential Regulation Authority and the Reserve Bank already regulate the banks.
There has also been the first major financial systems inquiry in two decades, from which the government is working on a whole series of reforms.
Fellow minister Peter Dutton said ASIC already has more powers than a royal commission and can impose penalties if a bank does the wrong thing.
It is important that when banks do the wrong thing and in cases where they don't abide by their codes or expose clients to unnecessary risk, they should be held to account by regulators, Mr Dutton told Sky News.
But Greens MP Adam Bandt applauded Labor coming on board in pursuit of a royal commission and believes it will be a frontline issue in the election campaign.
The Greens believe there should also be a discussion on a levy on the big four banks who benefit from their "too big to fail" status that allows them to borrow money much more cheaply than their competitors.
"They know the government will step in if they get into trouble or look like falling over," Mr Bandt told Sky News.
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