Banking Cartel David Murray ex CBA and Head of FSI Inquiry (appointed by Hockey), architect of vertical integration
"There are a whole range of issues the royal commission will look into and it's not wise to be pre-empting its consideration." Shadow treasurer Chris Bowen was more equivocal about the banks' structures on Thursday.
"Labor has been clear from the start that a royal commission would examine illegal and unethical conduct in the financial services sector," he told The Australian Financial Review.
"There are a whole range of issues the royal commission will look into and it's not wise to be pre-empting its consideration."
Senator Whish-Wilson, a former investment banker, said the Financial System Inquiry squibbed it by not making strong recommendations about vertical integration, even though it raised concerns.
Senator Whish-Wilson said this was because the head of the inquiry, former Commonwealth Bank boss David Murray, was among the architects of vertical integration and was therefore not eager to tear it down.
"The media speculated he might recommend the big banks having to sell off their wealth arms," Senator Whish-Wilson said. "While in the end he highlighted the flaws, he came up with really weak recommendations."