Day 317: 'Hear no evil, see no evil'
An introductory weekday newsletter from Schwartz Media. Counting the days since the banking royal commission was established.
Good afternoon and welcome to day 317.
Today in summary: Labor releases its response to the Hayne commission interim report; APRA signals a willingness to bare its teeth more often; and Opposition leader Bill Shorten wants banks to be stripped of their right to manage superannuation funds.
-- Charis
Current banker panic level: 😨
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Federal Labor has responded to the Hayne commission interim report by presenting the stories of bank victims who were not invited to give evidence at the hearings. It says the royal commission has overlooked how banks are using the legal system to crush customers. Commissioner Hayne asked for responses to his interim report to focus on policy issues as the commission moves onto identifying solutions. Prime Minister Scott Morrison responded by saying Bill Shorten did not respect the royal commission.
Under pressure for being a “hear no evil, see no evil” regulator in Senate estimates last night, APRA chair Wayne Byers said the regulator was reviewing its “enforcement philosophy”, including its general preference to avoid court action. Byers defended the safeness of the financial system:
"There's absolutely no case at all to say that we have failed."
Opposition leader Bill Shorten continues to push for a superannuation sector shakeup, telling a conference super fund administration should be taken out of bank control.
“I do think that the banks need to consider, and they shouldn’t wait until we’re told by a Royal Commission, that what they need to do is put the administration, or the trusteeship of superannuation, out of the hands of the bank and have independent organisations act as trustees.”
Today’s burn prize: APRA executive board member Geoff Summerhayes.
🔥🔥🔥
“Under your watch”
APRA executive board member Geoff Summerhayes being questioned by Nationals Senator John Williams over the role he played when working for Suncorp’s now defunct life insurance division.
For your reading list
Please, not another super scheme Mr Keating. It’s what the pension is for
Former prime minister Paul Keating this week called for a national insurance scheme to support Australians aged 80 and over. Curtin Law associate professor Helen Hodgson says we already have such a scheme. It’s called the age pension.
What the world can learn from Australia
The Economist takes a glass half full view of Australia’s economic prowess, but argues it could all be lost if political infighting continues.
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