Day 399: 'Post-Hayne landscape'
Counting the days since the banking royal commission was established.
Good afternoon, and welcome to day 399.
Today in summary: This has been my first exciting week as editor of Australian Banking Daily. I look forward bringing you a curation of clear and direct banking intel from our team of experienced and insightful business and policy journalists. This will be the news and analysis you need about the Australian financial services landscape without all the noise.
As we prepare to launch feel free to reach out to me any time with questions or story ideas at alexs@schwartzpro.com.au and be sure to follow us on Twitter for regular updates @BankingDailyAU and @AlexESampson.
Meanwhile, panic is rising as the post-holiday glow subsides and banking execs return to their desks and start to feel the heat of the Hayne royal commission delivery date bearing down on them. Except for JPMorgan CEO Jamie Dixon, whose landmark US$43million pay package is utterly unreflective of the economic woes of the US, UK or Australia. He’s great.
-- Alex
Current banker panic level: 😓😰
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The Commonwealth Bank today disclosed first-half non-cash losses of A$169 million. The losses come after CBA began overhauling its structure in what The Australian called a move toward a “post-Hayne royal commission landscape” and what CBA called a “commitment to becoming a simpler, better bank”.
Just two weeks away from the Hayne royal commission report delivery on February 1, analyst and commentator calls are heating up for the government to act swiftly in handing down the report publicly. The Australian questions “when the industry and a disturbed public will get the chance to sift through its volumes”, reporting expectations the government will hoard the blueprint for a couple of days before releasing it to the hungry masses.
ASIC is on the hunt for a new default superannuation provider but has rejected two-thirds of applicants, saying they’re too small. The corporate regulator has said it will only entertain bids from funds with assets of more than A$10 billion in an effort to ensure good returns for its employees. Only 28 of the 98 eligible default providers are big enough to apply for the job. It’s a damning indictment amid debate about how to restructure the broken default super system.
Today’s burn prize: Treasurer Josh Frydenberg
🔥🔥🔥
“The government recognises the potential market sensitivity of the final report and will take this into account in considering the timing of its release.”
Hinting that the Hayne report will be released outside of ASX trading.
The Commentariat
Policy adviser Christopher Joye writes in the Australian Financial Review that Future Fund debate could shape the Federal election as industry, government and regulators scramble to sort out the "moral hazards” that lead to conflicts between the interests of super beneficiaries and those who profit from managing their moolah”.
“There have been unfounded criticisms from the (many) vested interests that stand to be adversely impacted by this overdue policy reform.”
This is an introductory service while we’re building a comprehensive daily paid online publication, coming soon.
We’re not here to offer opinion, simply to cut through the noise, and help you make sense of the emerging policy and market trends you need to be across. We call it pure intel. You can read more about us here.