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 

The entire First World financial system is a ponzy scheme

Today, "contagion fears sliced $23b off the Australian stock market".  Australian shares have been up and down tens of billions numerous times over the last year, in fact since the 2008 Global Financial Crisis.

Why should debt concerns in Greece, Italy, Spain or Portugal have such effect on Australia when we are in the middle of a resources boom supplying China's economic growth?

It seems to be all about perception.  If some nations default in Europe then the first world's tangled web of loans and dodgy investments begins to unravel.  Then we get a run on banks and mass "withdrawal of participation" in the financial system, with trust broken.  This could end up in a 1930s style depression.

So the First World's financial system is a giant interconnected ponzy scheme teetering on the brink of collapse.  Last ones out lose all their money.  Banks close their doors.  Countries go broke.  Currencies collapse.

After largesse by various governments and politicians over decades, with unregulated dodgy financial trickery rampant, the solution is "austerity measures" on the hapless populations that pay the taxes.

Another solution is "Quantitative Easing" - which the United States is doing - which effectively means printing more money without producing, making or growing anything.

It seems to we need to redesign our financial system to eliminate speculation, waste, corruption and the endless fixation on endless growth.

In essence, this is a core concern of the Occupy Movement.

Here is a good video from The Guardian that explains some details about wealth and income distribution changes in the United States