Banking royal Commision findings

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Banking royal Commision findings

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paulybronco
5 years ago

This is all you need to know about the Hayne Inquiry into the financial system:

Commonwealth Bank [ASX:CBA] up 4.7%

ANZ Bank [ASX:ANZ] up 6.5%

Westpac Bank [ASX:WBC] up 7.35%

National Australia Bank [ASX:NAB] up 3.90%

AMP Ltd [ASX:AMP] up 10%

IOOF Holdings Ltd [ASX:IFL] up 8%

The Royal Commission’s bark was clearly worse than its bite.

speedzter
5 years ago

Yes, could have been messy for the AU market in general.
They dropped back a bit today, but still up.
i made a few $ even on my tiny portfolio !
just catching up on the last 12 months though.

steelo
5 years ago

Don't be too hard on them PB. People cheer when the banks get a bashing but it has a shocking effect on the few bank shares we have that I'm hoping will help me out in retirement.
Maybe they think that like a cancer, cutting it out will improve the health of the banking system

paulybronco
5 years ago

Quoting steelo on 06 Feb 2019 08:52 AM
Don't be too hard on them PB. People cheer when the banks get a bashing but it has a shocking effect on the few bank shares we have that I'm hoping will help me out in retirement.
Maybe they think that like a cancer, cutting it out will improve the health of the banking system

Umm Steelo this is really a question of ethics. I read about Ben Barba (NRL player) who is a habitual wife basher and has now been banned from playing football forever as a result of anoughther domestic violence offence. His Mrs has appealed the decision pointing out that the loss of contract will result in financial hardship. Moral of the story is she, like all us bank customers are prepared to accept either a belting in her case or us being gouged and ripped off billions in order to make a quid.
Just for the record i also hold bank shares

Ratbob
5 years ago

How many of us would own anything if it wasn’t for the banks.
I agree there have been some poor cases but generally its just been a blame game for people’s poor financial choices. Why blame the bank if your business or farm or whatever goes bust.
If people find a way to rip off a bank it’s all yihar, happy happy, the other way round it’s all boo hoo poor me, yet you’ll find their signature on all the conditions.
I’ve got shares in most banks, after all they must be good, remember when the Labour Govt claimed our banks were so great they guaranteed them. How soon we forget.

keith
5 years ago

I expected some losses on the announcement, just the reverse, I'm thinking the dividends will not hold up so well in the future ? Been a loyal Westpac account holder since I was a kid, without there support I'm sure I would be worse off, still can have a face to face with a decision maker if needed.
All the dirty washing aired indeed !

paulybronco
5 years ago

Quoting Ratbob on 06 Feb 2019 09:19 AMedited: 06 Feb 2019 09:20 AM
How many of us would own anything if it wasn’t for the banks.
I agree there have been some poor cases but generally its just been a blame game for people’s poor financial choices. Why blame the bank if your business or farm or whatever goes bust.
If people find a way to rip off a bank it’s all yihar, happy happy, the other way round it’s all boo hoo poor me, yet you’ll find their signature on all the conditions.
I’ve got shares in most banks, after all they must be good, remember when the Labour Govt claimed our banks were so great they guaranteed them. How soon we forget.

That is a very silly opening comment sorry mate. Unless your a drug dealer or dig up a gold ingot we all have to use a bank at some stage in our lives. Can you tell me of one instance of a bank being ripped off.......its like the casino they ultimately win. If you really think about the system its not dissimilar to a pyramid game, they require more and more members that they progressively squeeze in fees and non sencene charges as well as increase your home loan independant to reserve bank rulings. Imagine being able to walk into work and telling the boss that this month he needs to pay you $x and he pays you! Welcome to our banks

Ratbob
5 years ago

Hi Pauly, yeah it’s a bit of a motherhood statement but folks seem to lose sight of the fact that most of us wouldn’t have any assets without the banks.
As for ripping the banks off, Ex bank employees I know relayed examples where businesses have gone insolvent, cheating tradies, staff and the banks out of their lot only to open up a few months later under a different structure. Banks write off thousands in credit card debt for people claiming hardship only to find those same people applying for new cards claiming high incomes. Then there’s the fools transferring debts or using new cards to pay off old cards, then when it goes belly up they blame the banks that haven’t received any interest for their services.
As for the banks upping mortgage interest, I don’t see anything wrong with that provided the ability to do so is within the mortgage agreement the customer signed with the bank, if people can’t be bothered to take an interest to grasp what a flexible mortgage rate loan is, I don’t see that as being the banks fault. As for demanding a pay rise, all depends on whether you’ve negotiated that capability into your enterprise or performance based agreement.
Jeeze I am going on, I think it gets back to one of your posts under a different subject, in many cases people need to take responsibility and not just play the blame game.

paulybronco
5 years ago

Quoting Ratbob on 06 Feb 2019 01:21 PM
Hi Pauly, yeah it’s a bit of a motherhood statement but folks seem to lose sight of the fact that most of us wouldn’t have any assets without the banks.
As for ripping the banks off, Ex bank employees I know relayed examples where businesses have gone insolvent, cheating tradies, staff and the banks out of their lot only to open up a few months later under a different structure. Banks write off thousands in credit card debt for people claiming hardship only to find those same people applying for new cards claiming high incomes. Then there’s the fools transferring debts or using new cards to pay off old cards, then when it goes belly up they blame the banks that haven’t received any interest for their services.
As for the banks upping mortgage interest, I don’t see anything wrong with that provided the ability to do so is within the mortgage agreement the customer signed with the bank, if people can’t be bothered to take an interest to grasp what a flexible mortgage rate loan is, I don’t see that as being the banks fault. As for demanding a pay rise, all depends on whether you’ve negotiated that capability into your enterprise or performance based agreement.
Jeeze I am going on, I think it gets back to one of your posts under a different subject, in many cases people need to take responsibility and not just play the blame game.

Absolutely agree with people having to take responsibility of their affairs 100%. I do however disagree that the banks are out of pocket with insolvency, bankrupt etc to the extent that private people like subbies etc are. Banks are normally a "secured creditor" and lend money to clients/businesses to purchase assets (buildings , furniture etc) and the bank takes a "lien" on those assets and will lend more based on several factors. In the event of default, bankruptcy or insolvency the bank will exercise their legal right to repossess the asset and sell it to recoup its money. Any outstanding money they will still pursue you for if they can The poor old subbies are unsecured by the business collapse and get fuck all. If you declare bankruptcy Your name will appear permanently on a public register called the National Personal Insolvency Index (NPII). The NPII shows details of insolvency proceedings in Australia, including bankruptcy. Banks refer to this EVERY time you ask for credit, be it a card, loan etc

paulybronco
5 years ago

Rodders i will state upfront i personally have little sympathy for the banks.That said YOU need to educate yourself to what is available and STAY on top of rates etc. Short answer if you can get a deal that is cheaper by 2% cheaper than existing rate you will save. PS Don't mind Dom but not fussed on caviar

Nutty
5 years ago

Quoting Ratbob on 06 Feb 2019 09:19 AMedited: 06 Feb 2019 09:20 AM
How many of us would own anything if it wasn’t for the banks.
I agree there have been some poor cases but generally its just been a blame game for people’s poor financial choices. Why blame the bank if your business or farm or whatever goes bust.
If people find a way to rip off a bank it’s all yihar, happy happy, the other way round it’s all boo hoo poor me, yet you’ll find their signature on all the conditions.
I’ve got shares in most banks, after all they must be good, remember when the Labour Govt claimed our banks were so great they guaranteed them. How soon we forget.

I get where you're coming from Ratbob but look at it this way. Is it your Electricians fault if he fucks up and burns your house down? Your doctors fault if he removes the wrong testicle? Your mechanics fault if he does an oil change and doesn't refill the sump?
How come ordinary punters who know SFA about banking can't put their faith and trust in Professionals in the banking sector...but can in every other area of service indusry?

I'm a financial idiot but I'm happily well-off in retirement through the good advice of Professionals. My BIL who was head of FX for Suncorp is also retired...and living in a rented apartment.

I take your point that we should watch out for own arses, but gee, there's a lot of folks like me who need to be able to trust the Pros...

paulybronco
5 years ago

Quoting Ratbob on 06 Feb 2019 09:19 AMedited: 06 Feb 2019 09:20 AM
How many of us would own anything if it wasn’t for the banks.
I agree there have been some poor cases but generally its just been a blame game for people’s poor financial choices. Why blame the bank if your business or farm or whatever goes bust.
If people find a way to rip off a bank it’s all yihar, happy happy, the other way round it’s all boo hoo poor me, yet you’ll find their signature on all the conditions.
I’ve got shares in most banks, after all they must be good, remember when the Labour Govt claimed our banks were so great they guaranteed them. How soon we forget.

Quoting Nutty on 07 Feb 2019 12:16 PMedited: 07 Feb 2019 12:17 PM
I get where you're coming from Ratbob but look at it this way. Is it your Electricians fault if he fucks up and burns your house down? Your doctors fault if he removes the wrong testicle? Your mechanics fault if he does an oil change and doesn't refill the sump?
How come ordinary punters who know SFA about banking can't put their faith and trust in Professionals in the banking sector...but can in every other area of service indusry?

I'm a financial idiot but I'm happily well-off in retirement through the good advice of Professionals. My BIL who was head of FX for Suncorp is also retired...and living in a rented apartment.

I take your point that we should watch out for own arses, but gee, there's a lot of folks like me who need to be able to trust the Pros...

Nutty you need to learn the system, its currently a game and the casino wins in the end

Ratbob
5 years ago

Hi Rodders, banks and then what I call the beer factor.
I reckon the banks and any other business/organisation that has been authorised to make regular deductions from your account or credit card say for fees like life, car, health insurance or club membership etc has every right to do so until they are advised of a persons demise or the account is closed.
When my parents died I didn’t tell their bank, no way, they would have frozen the accounts till probate was settled, much better to let em run, pay all the ongoing fees, use the money to settle their debts, pull the rest then close the account. Sure that meant the bank kept deducting fees etc from a deceased person but that wasn’t the banks fault.
As for interest rates, if NAB had to charge the RBA interest rate on loans they’d soon go bust. The RBA doesn’t factor in the cost banks pay to get money to lend out ie, just at a basic level NAB pays 2.1% on one of my accounts so that sure beats the declared RBA cash rate of 1.5%. They pay 2.55% on a term deposit so seeing their current variable rate is 4.29% that’s about a 68% profit margin (yeah credit cards are a different matter) so their far less greedy than my local pub. Those bastards pay less than $2 for a stubbie and charge me $8.50 over the bar, that’s a 325% profit margin and strangely, no one complains.
I reckon most of us frequent a pub more than a bank, so how about a Royal Commission into the bastard rip off pubs.

paulybronco
5 years ago

LOL But sadly its not the pub you should be pointing a finger at......A typical 24-carton of full-strength beer at 4.9 per cent alcohol will set you back $47.99. Of that, $16.49 is excise, then add $4.36 in GST. Yep, $20.85 is tax. At almost half of the retail price the most expensive ingredient in beer, is tax. Our beer taxes consistently rank in the top tier globally. There’s more though, the Government automatically increases beer tax every six months. And, we then pay 10 per cent GST on top of it all. Australians pay more than double the OECD average in beer tax. We pay over seven times more than Argentina, Belgium, Chile and Poland; over six times more than Austria, Hungary, the Netherlands and South Africa; almost five times more than Italy and Greece; double the beer excise paid in the US and almost double that of New Zealand.

Ratbob
5 years ago

Quoting paulybronco on 07 Feb 2019 10:26 PM
LOL But sadly its not the pub you should be pointing a finger at......A typical 24-carton of full-strength beer at 4.9 per cent alcohol will set you back $47.99. Of that, $16.49 is excise, then add $4.36 in GST. Yep, $20.85 is tax. At almost half of the retail price the most expensive ingredient in beer, is tax. Our beer taxes consistently rank in the top tier globally. There’s more though, the Government automatically increases beer tax every six months. And, we then pay 10 per cent GST on top of it all. Australians pay more than double the OECD average in beer tax. We pay over seven times more than Argentina, Belgium, Chile and Poland; over six times more than Austria, Hungary, the Netherlands and South Africa; almost five times more than Italy and Greece; double the beer excise paid in the US and almost double that of New Zealand.

Exactly Pauly, and the bastard rip off pubs :) charge their 325% profit not just on the beer but the tax as well. :(
Don’t get me started on spirits, cigs and cigars, probably why I like visiting Asia. Don’t know what our health authorities are on about, after a few cigars and a gallon of beer, I always feel much healthier

paulybronco
5 years ago

Quoting paulybronco on 07 Feb 2019 10:26 PM
LOL But sadly its not the pub you should be pointing a finger at......A typical 24-carton of full-strength beer at 4.9 per cent alcohol will set you back $47.99. Of that, $16.49 is excise, then add $4.36 in GST. Yep, $20.85 is tax. At almost half of the retail price the most expensive ingredient in beer, is tax. Our beer taxes consistently rank in the top tier globally. There’s more though, the Government automatically increases beer tax every six months. And, we then pay 10 per cent GST on top of it all. Australians pay more than double the OECD average in beer tax. We pay over seven times more than Argentina, Belgium, Chile and Poland; over six times more than Austria, Hungary, the Netherlands and South Africa; almost five times more than Italy and Greece; double the beer excise paid in the US and almost double that of New Zealand.

Quoting Ratbob on 07 Feb 2019 10:46 PMedited: 07 Feb 2019 10:47 PM
Exactly Pauly, and the bastard rip off pubs :) charge their 325% profit not just on the beer but the tax as well. :(
Don’t get me started on spirits, cigs and cigars, probably why I like visiting Asia. Don’t know what our health authorities are on about, after a few cigars and a gallon of beer, I always feel much healthier

Ha Ha i hear you, i often wonder if i am anorexic , i see a fat fucker everytime i look into the mirror! Maybe its the beers every night....

allde
5 years ago

What's the big deal over the banks, our own government deregulated them, and privatised our own banks.
What did people expect, they aren't a charity, there only priority is to make their shareholders a profit.
And that is why Liberal and Labor didn't want a Royal commission, they implemented the tools that allowed
the banks to do what some of their customers are complaining about.

Of course the banks are motivated by greed, but giving them the power to self regulate was never going to work,
It would be like putting Dracula in charge of the Blood bank. lol

robots
5 years ago

been a witch hunt,
a retired queens counsel and team of lawyers haven't been able to produce 1 criminal/corporate charge.

Westpac vs ASIC relating to irresponsible lending was also thrown out of court recently as high court judge and "friend of the court" could not find evidence of breaching the code of conduct.

having significant impact on the economy, probably 5yrs for it to go away

so much of this is driven by class warfare

speedzter
5 years ago

Quoting paulybronco on 07 Feb 2019 10:26 PM
LOL But sadly its not the pub you should be pointing a finger at......A typical 24-carton of full-strength beer at 4.9 per cent alcohol will set you back $47.99. Of that, $16.49 is excise, then add $4.36 in GST. Yep, $20.85 is tax. At almost half of the retail price the most expensive ingredient in beer, is tax. Our beer taxes consistently rank in the top tier globally. There’s more though, the Government automatically increases beer tax every six months. And, we then pay 10 per cent GST on top of it all. Australians pay more than double the OECD average in beer tax. We pay over seven times more than Argentina, Belgium, Chile and Poland; over six times more than Austria, Hungary, the Netherlands and South Africa; almost five times more than Italy and Greece; double the beer excise paid in the US and almost double that of New Zealand.

Another funny thing is it's cheaper to drink heavy Beer than light beer !.
Light beer is generally the same or more exepesive than heavy .
So you get twice as drunk for the same money !!
Where's the health incentive to drink low Alcohol beer ?

Ratbob
5 years ago

Quoting paulybronco on 07 Feb 2019 10:26 PM
LOL But sadly its not the pub you should be pointing a finger at......A typical 24-carton of full-strength beer at 4.9 per cent alcohol will set you back $47.99. Of that, $16.49 is excise, then add $4.36 in GST. Yep, $20.85 is tax. At almost half of the retail price the most expensive ingredient in beer, is tax. Our beer taxes consistently rank in the top tier globally. There’s more though, the Government automatically increases beer tax every six months. And, we then pay 10 per cent GST on top of it all. Australians pay more than double the OECD average in beer tax. We pay over seven times more than Argentina, Belgium, Chile and Poland; over six times more than Austria, Hungary, the Netherlands and South Africa; almost five times more than Italy and Greece; double the beer excise paid in the US and almost double that of New Zealand.

Quoting speedzter on 08 Feb 2019 03:57 AM
Another funny thing is it's cheaper to drink heavy Beer than light beer !.
Light beer is generally the same or more exepesive than heavy .
So you get twice as drunk for the same money !!
Where's the health incentive to drink low Alcohol beer ?

Agree, and they say the beer price/tax is based on the alcohol content, this is another example of how we’re getting ripped off by the pubs. :)
Bring in that Royal Commission.

Topics

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Banking royal Commision findings

Banking royal Commision findings

paulybronco

speedzter

steelo

paulybronco

Ratbob

keith

paulybronco

Ratbob

paulybronco

paulybronco

Nutty

paulybronco

Ratbob

paulybronco

Ratbob

paulybronco

allde

robots

speedzter

Ratbob