Why we need a Royal Commission into Australian banks and financial services

Calls for a Royal Commission into Australian Banks and financial services have so far fallen on deaf ears.

The reasons why a royal commission is urgently needed include:

• Entrenched ongoing fraudulent (possibly criminal) financial advice provided by the Commonwealth bank that has resulted in the losses of tens of millions of investors money.
• Banks rigging interest rates. Commonwealth Bank, ANZ, Westpac and National Australia Bank are all under official investigation by ASIC and have been served with official notices.
• The Australian Senate inquiry demanded a royal commission into Commonwealth Bank and ASIC
• The failure of "self regulated" banks and other financial services companies to deal with corrupt and illegal activities within their businesses.

Predictably, some major Australian banks oppose a Royal Commission into their conduct.  What have they got to hide?

Labor now supports a Greens move for a Royal Commission into financial services.  Some Coalition politicians such as Warren Entsch also support this.

Prime Minister Turnbull has dismissed calls for the Royal Commission, describing it as a "thought bubble".  Ministers Josh Frydenberg and Peter Dutton have also parroted the "thought bubble" dismissal.  

It is quite clear that Turnbull, Frydenberg and Dutton are putting a massive cover-up of corporate banking fraud ahead of the public interest.  Perhaps the large political donations that banks all make to the Liberal and National parties influence this curious response?

I don't think that the Commonwealth bank losing tens of millions of retirees and other investor money due to illegal and fraudulent practices is a "thought bubble".  Nor is collusion between banks to manipulate interest rates. 

I think it essential that the financial sector in Australia abides by laws and is held accountable and penalised for illegal activities if and when they occur.

External links

• Commonwealth Bank compensation scheme for victims of financial planning scandal 'a joke', Senate inquiry hears - ABC News
• Bank hearings to pry into interest rate rigging afr.com
• Senate inquiry demands royal commission into Commonwealth Bank, ASIC - ABC News
• Labor takes aim at big banks, promising royal commission if elected - ABC News
• NAB, ANZ bosses say calls for royal commission in banking a 'serious distraction' - ABC News
• Pressure on Turnbull over banks as three more Nats MPs speak out on royal commission. Sydney Morning Herald. 
• 'Captain's call': Lib MP lashes Malcolm Turnbull and ministers for opposing bank inquiry