Category Archives: Banks
Banks order the Member for Goldman Sachs, Mal Turnbull to knock up an inquiry for which they will provide the terms of reference
30 November 2017: KAP Federal Member for Kennedy Bob Katter today applauded the Turnbull Government’s endorsement of a Royal Commission into the banks, but warns that whilst this battle is won, the war will continue should the Government opt to uphold a 12 month review period and construct the review board from those within the finance industry.
Mr Katter, who was the first Member of Parliament to call for a Royal Commission into the banks in May 2015 and who introduced legislation in the Parliament earlier this year, labelled today’s announcement as ‘a great victory of the people of Australia’.
“This is a great victory for the ordinary Australians. Today my fellow Australians we have won. We have proved that we can win. The Government has been resistant almost to a point of bringing down their own Government against having a Royal Commission into the banks.
“Resistant to a point where the people had a great stroke of luck and the Liberal Party was one down in the Parliament and since they were one vote down, we could cease control of the Parliament and get through the Royal Commission into the banks.
“But the victory lies with those people that did not cop if from the banks but stood up and fought and fought and fought, and with the meagre resources they had they went into the courts and got slaughtered, constantly coming to people like myself and the crossbench – together were able to get the victory today”
“I had the very great honour of having drafted the legislation in conjunction with George Christensen; just two ordinary Australians. The leader of the Government is a banker and unfortunately for him, from Goldman Sachs whose history is checkered.
“This is where the second ball game arises. The Government only acted at the request of the banks. They ignored the majority of the Parliament, they ignored the majority (I suspect) of their own Party and they most certainly treated with contempt the view of the people of Australia. They only acted when they got their writing instructions from the banks and that is a terrible indictment of the Government.”
Mr Katter said that the substance behind the Royal Commission will come down to the composition of terms of reference of the inquiry and said that appointments to the Commission should be approved by the Parliament.
“We put in our legislation, that there will be three judges and three people from the community. We don’t want Caesar judging Caesar. We don’t want just anyone from the financial sector. On our list of names, we suggested Oliver Yates who has a banking background but has proved again and again what he thinks is the right thing and not just what the banks say is the right thing to do. These are the sort of people the people of Australia would trust to do the right thing.
“To my fellow Australians I say this; you have risen up, not given in and fought, you never gave up and you never gave in. You kept out there fighting and fighting. But I warn you, the man from Goldman Sachs is not going to be giving you the inquiry that you want.”
People in Hughenden will be forced to drive 250km to access full ANZ banking services, with the big bank announcing it will close its Hughenden branch.
Member for Mount Isa Robbie Katter said it is just another example of big corporations focusing on profits rather than customers, services and communities.
“I think that big corporates like ANZ have a social responsibility to provide services to towns like Hughenden, even if that particular branch doesn’t generate a lot of money,” Robbie said.
“We are talking about a company that reported a first half year cash profit of $3.4 billion just a couple of months ago. They cannot argue that keeping the Hughenden branch open will cripple their business. But losing services like this in regional Queensland cripples communities.”
In a statement about the branch closure, ANZ told its customers they could travel to Charters Towers for their banking needs.“What a joke,” Robbie said. “The city people making these decisions complain if they have to spend an extra 10 minutes in peak hour traffic. Now they want people to drive 250km to go to the bank. ANZ obviously doesn’t care about its customers outside of the city.”
“It’s not just services that the community is losing, this is two jobs that will be lost. Every job counts. Unemployment is already sky high in rural and regional Queensland. Youth unemployment in outback Queensland is currently at 56.2 per cent. Plus these job losses come on the back of Aurizon railway sacking workers which hit Hughenden hard.”
“We have big plans for this region, with the abattoir proposal, irrigation proposals and renewable energy developments. It’s alright for these banks to take big profits in the good times. As soon as the dollar signs disappear they take their bat and ball and go home.”
“We hope that people in Western areas remember what ANZ is doing here. This could mean a lot more to ANZ than just losing business in Hughenden. This is stain on their treatment of people in Western Queensland.”
Robbie said smaller banks had a better track record of supporting smaller communities.
“Suncorp stuck by Julia Creek and went in there when a bank pulled out. It’s sickening that huge corporates like ANZ with mega profits just walk away from rural and regional Australia and hang them out to dry.”
Federal Member for Kennedy Bob Katter said: “Let the people of the North Qld mid-west know that the Labor Government deregulated the wool industry, and we lost around 700 jobs. Under the Liberal’s National Competition Policy and the acquiescence of the Labor State Government the railways. The Liberal Government privatised Telstra and sold off the State bank taking away 200 jobs. Under the corporatisation and deregulation of Ergon by Labor we lost nearly 600 jobs. Let’s face it the Liberals would have done all of those things faster,” Bob Katter said.
“With the ANZ Bank Hughenden Bank closure, the reality is we have got no one there to serve us. I think the KAP policy to take 1.7% of the water by law, will almost certainly see HIDCO become a reality. The Hann Highway should be completed under the present program by 1-2 years. We are working intensely on the Big Kennedy wind farm and with HIDCO’s irrigation there will be a quartering works and maybe a meatworks in Hughenden.”
“These things are not happening, they are being MADE to happen by a very tough local leadership, who are setting an example for all of inland Australia.”
Party duopoly throw farmers to the wolves
The Queensland Government’s Farm Business Debt Mediation Act, which it is spruiking in a media release today, is a ruse to cover the fact it has completely failed to address the farm debt crisis.
“It’s another frightening example of a government putting ambulances at the bottom of the cliff,” Member for Mount Isa Robbie Katter said.
Robbie is warning people not to be fooled by the Government’s ‘solution’ which comes into play next month. “A farm debt mediation mechanism doesn’t solve the debt problem, it just means that when the farmer is finally completely crippled by debt, they can shut their business efficiently. It’s a complete slap in the face to the entire agriculture industry,” Robbie said.
In March this year, the government and LNP refused to support KAP’s Rural Debt Bill, which would have addressed the unsustainable levels of farm debt, which is bringing Queensland’s agriculture industry to its knees.
“Through the Rural Debt and Drought Taskforce that I chaired in this parliament, it was clear that the debt problem is massive and that a significant response from the Government was required to address it,” Robbie said.
“In 2015, I thought the Palaszczuk Government was serious about identifying solutions to address rural debt issues with the formation of a Rural Debt and Drought Taskforce. I was wrong. Just like the opposition they prefer to leave it to the market. This approach has delivered a declining sugar industry, a decimated dairy industry and some of the most expensive gas and electricity in the world.”
“Governments intervene in markets all the time. Between the Clean Energy Finance Corporation and the Australian Renewable Energy Agency, there’s about $5 billion worth of low-interest loans to help stimulate the industry. However, when it comes to supporting agriculture, and particularly family enterprises, the Government doesn’t want to touch it”.
“Instead of supporting KAP’s Rural Debt Bill, which was created off the back of extensive investigation and consultation, and would have made a real difference to fixing the rural debt problem, the government pushed through its mediation act to make it look like it was doing something,” Robbie said.
“It’s a disgrace. It’s just another example of how little the major parties care about anything that’s happening outside of Brisbane.”
Why would a government chartered by the constitution to protect the people be so reluctant for a Royal Commission into Australian banking when overwhelming public evidence suggests a pungent smell of endemic criminal corruption is abundant, reflecting a vested political interest.
You may find the attached paper of interest.
We thank Betty Luks of Australian League of Rights for presenting this paper to sosnews for our readers to review. The International Review of Financial Analysis published by Elsevier Inc was invited to present a submission to the Iceland government in the aftermath of the banking collapses in 2008.
The big four taxpayer protected banks have developed their unchallenged rule book void of all serious accountability and shrouded in government protection that now rides on shaky ground.
There is escalating support in the upper house to investigate banks with extremely wide terms of reference reporting back to the parliament, not the Executive. This does not apply to a Royal Commission which is implemented by the Cabinet which can appoint allied commissioners and terms of reference, which is then reviewed from behind closed doors of the executive alleviating any input from the people’s parliament.
Harry Palmer, Editor
International Review of Financial Analysis Introduction
Thanks to the recent banking crises interest has grown in banks and how they operate.
In the past, the empirical and institutional market micro-structure of the operation of banks had not been a primary focus for investigations by researchers, which is why they are not well covered in the literature.
One neglected detail is the banks’ function as the creators and allocators of about 97% of the money supply (Werner, 1997, 2005), which has recently attracted attention (Bank of England, 2014a,b; Werner, 2014b,c).
It is the purpose of this paper International Review of Financial Analysis published by Elsevier Inc to investigate precisely how banks create money, and why or whether companies cannot do the same.
Since the implementation of banking operations takes place within a corporate accounting framework, this paper is based upon a comparative accounting analysis perspective. By breaking the accounting treatment of lending into two steps, the difference in the accounting operation by bank and non-bank corporations can be isolated.
As a result, it can be established precisely why banks are different and what it is that makes them different: They are exempted from the Client Money Rules and thus, unlike other firms, do not have to segregate client money. This enables banks to classify their accounts payable liabilities arising from bank loan contracts as a different type of liability called ‘customer deposits’.
The finding is important for many reasons, including for modelling the banking sector accurately in economic models, bank regulation and also for monetary reform proposals that aim at taking away the privilege of money creation from banks.
The paper thus adds to the growing literature on the institutional details and market micro-structure of our financial and monetary system, and in particular offers a new contribution to the literature on ‘what makes banks different’, from an accounting and regulatory perspective, solving the puzzle of why banks combine lending and deposit-taking operations under one roof.
Click on picture to download/read the document
The Liberals and Nationals are trying every devious trick in the book to stop this banking inquiry bill from getting passed in federal parliament. Renegade LNP Member for Dawson in Central Queensland, George Christensen, confirmed today he will cross the floor to support Bob Katter who has led the charge against the unlawful and unethical conduct of banks. Every small businessman and farmer in Australia will benefit from this inquiry.
The People of Australia’s Commission of Inquiry (Banking and Financial Services) Bill 2017
The bill provides for the establishment of a Commission of Inquiry. The Bill invests the People of Australia’s’ Commission of Inquiry with the full powers of a Royal Commission as laid out in the Royal Commissions Act 1902. The Commission of Inquiry will inquire into unethical, unlawful and improper conduct in the banking, financial services and related sectors.
The purpose of the Bill is to fully expose and shine the light of public scrutiny on the unethical and unlawful conduct/practices in the banking and financial services industries and to put forward recommendations for reform.
Particular concern has been raised in relation to the conduct of service providers in the banking, superannuation, insurance and other financial services sectors.
Responding to numerous media reports, whistleblower disclosures and cases raised with Members of Parliament and Senators, there have been 37 reviews and inquiries into banking and financial services since 2010. However, none of these past reviews/inquiries have had the level of powers of a Royal Commission. These past reviews/inquiries have often not been independent, have been politicised and have had limited scopes of inquiry. This has led to little, or no, reform to the sector, nor justice for the victims. Nor has this led to the spotlighting of the malpractices, shortcomings and injustices of current financial practices.
The Commission of Inquiry will have the full powers of the Royal Commissions Act 1902 plus additional powers related to protecting whistleblowers. The Commission of Inquiry will report to the Parliament, as opposed to a Royal Commission which reports to the Executive arm of Government.
Read the documents:
The Banker Airs His Views On The Right Of The Elite
To Control Everyones Lives. A Must Watch For Anyone Who Is Angry About The Current Finanacial Situation! This Is Whats Really Going On!
LNP VOTE WITH LABOR TO KILL RURAL DEBT REFORM
State Member for Mount Isa Robbie Katter has slammed the LNP for supporting Labor to vote against a real solution to address rural debt.
In a parliamentary session that went into the early hours of Wednesday morning the KAP’s Rural and Regional Adjustment (Development Assistance) Amendment Bill was denied a vote in the House through the blocking of a motion put forward by Robbie Katter.
“The motion was put forward to enable the Parliament to adequately consider and vote on a solution that would’ve seen a new lending mechanism established to address the shortcomings in QRAA’s current activities”
“Each member of the crossbench voted to allow the motion to be heard but it was the major parties who didn’t allow it. It’s unbelievable that they would so blatantly work together to stifle a minor party Bill.”
“With so much public disappointment in partisan politics it’s ironic that the only thing the major parties can agree on is limiting consideration of minor party Bills”
Mr Katter highlighted the amount of consultation and analysis that went into the KAP’s Bill and expressed his disappointment at the behaviour of the major parties.
“The LNP not only supported Labor’s Bill over the KAP alternative, they actively worked to restrict debate and consideration of the KAP Bill”
“The LNP and Government used every excuse in the book to avoid undertaking a difficult reform. They even used banking regulations as an excuse. Do they forget where here to change laws and regulations? If I told my constituents that I wasn’t prepared to undertake legislative reform because of a regulation I wouldn’t deserve to represent them”
“For me, the genesis of this Bill was during the term of the Newman Government, which shows that this has taken years of stakeholder discussions, industry forums, community and local leader’s input,” Mr Katter said.
“Through the Rural Debt and Drought Taskforce that I chaired in this parliament it was clear that the debt problem is massive and that a significant response from the Government was required to address it”
“However what the Parliament has achieved is an ambulance at the bottom of the cliff. A farm debt mediation mechanism doesn’t solve the debt problem it just ensures that when the problem has finally caught up with a producer they can shut their business efficiently”
KAP’s legislation was designed to address not only the cattle industry, but also the viability of our rural towns.
“We need ways of stimulating the economies of the rural towns that rely on agriculture. Rather than using blunt funding programs to create short term employment, why not invest in reconstructing the core industry so longer term organic growth can be delivered”
Mr Katter expressed disappointment at the Government and Opposition’s “hands-off” approach to supporting a key Queensland industry.
“In 2015, I thought the Palaszczuk Government was serious about identifying solutions to address rural debt issues with the formation of a Rural Debt and Drought Taskforce. I was wrong. Just like the Opposition they prefer to leave it to the “market”. This approach has delivered a declining sugar industry, a decimated dairy industry and some of the most expensive gas and electricity in the world.”
“Government’s “intervene” in markets all the time. Between the Clean Energy Finance Corporation and the Australian Renewable Energy Agency there’s about $5 billion worth of low interest loans to help stimulate the industry. However when it comes to supporting agriculture, and particularly family enterprises, the Government doesn’t want to touch it”.
“The rural community right throughout the State should be angry that a significant proposal to benefit people doing it tough and earning a living in regional Queensland would be stymied and watered down by both major parties.”
KAP Federal Member for Kennedy, Bob Katter has called on Australians to contact their local politicians and give them ‘The Request’- to support the Banking Royal Commission/Commission of Inquiry.
A Newspoll released today shows that sitting member for Dawson, LNP George Christensen is neck to neck with One Nation, which places him on a suicide mission if he does not cross the floor to support Katters bill for a Royal Commission.
Although 68 per cent of voters in Dawson support the Royal Commission, they haven’t yet realised One Nation is now another branch of the Liberal Party and will not support the inquiry.
George would be best placed for his longevity in Parliament to support Katter and join his party.
PM Malcolm Turnbull and his Cabinet, including Barnaby Joyce have been instructed by the Australian Bankers Association new chairman, Anna Bligh (ex Qld ALP Premier), to prevent a Royal Commission from going ahead.
Bligh is simply reinforcing a long-held policy of the ABA and the Liberals.
Only the executive arm of Government can call for a Royal Commission, so a Commission of Inquiry is being pursued with all the powers of a Royal Commission, but it will report to the Parliament, instead of the executive arm of Government.
To become law the Commission of Inquiry will require two members of the Government in the lower house to cross the floor. The Federal Member for Dawson, George Christensen has publicly stated he will support a Commission of Inquiry – so one more Government MP’s vote is required for the bill to pass.
“So we just need one more. There is only one language politicians understand and that is ‘we are going to get you, we are going to get rid of you at the next election’,” Mr Katter said.
“We have had 100s of people from all over Australia ringing my office and demanding a Royal Commission into the banks – which we already support and we introduced Commission of Inquiry legislation last year.
“So from now on we are telling them to put ‘The Request’ to their local Federal Member of Parliament and get three people to do the same. Those three people are then asked to get another three people each, who then get another three people….and so it continues.
“I’m telling Australians to contact their local Federal Member of Parliament and say ‘are you voting to support this?’ If the Local Federal Member is not supporting the Royal Commission into the Banks then say, ‘we officially inform you that we are working to get rid of you at the next election’. It is not about saying we support someone else, it is just that we are getting rid of you.
“80% of the Australian people want a Royal Commission into the banks. It is a litmus test really on whether you are there to represent and protect the established order, or if you are there to represent the people. This could not be a more clear cut case.
“It is quite clear to me that George Christensen is a man of integrity and will cross the floor, as he has done before. He is a Lone Ranger. Not another soul from the ALP or LNP has crossed the floor in the last 20 years.
“Depending on definition there has been between 15 and 38 inquiries since 2010. But the savagery of a Royal Commission and its powers can’t be ignored. I never regretted the Royal Commission in QLD, even though it cost me and my Country Party greatly and many innocents were burned. Even though we never put the bad guys in gaol, we did remove their protection and destroyed the corruption. This is what a Royal Commission brings.
Australians can find out who their local Federal Member of Parliament is on the following website which has a search function to search by electorate, postcode or politicians name: http://www.aph.gov.au/Senators_and_Members/Members
click on video above
by John F Howard in Townsville
Netherlands-based bank Rabobank with the aid of an armada of government-paid enforcers arriving in government vehicles along with grubby receivers Ferrier Hodgson heavied Noeline Bradshaw and her son Neil to get off their cattle property, Ballabay north of Pentland.
Noelene and Neil were arrested by several violent officers and marched off to the paddy wagon
Although the receivers and Rabobank representatives indicated they would go to the negotiating table after a court appearance on Thursday, in order to avoid a welcoming party at the property they did not arrive on Monday February 20 as they had indicated.
Instead they arrived in military style on Wednesday, with enforcers blocking the entry road and threatening any media or supporters with arrest if they tried to enter.
Ferrier Hodgson were supposed to remove the family on “voluntary terms” as they had suggested.
It appears they did not wish to have any other parties present when removing the entire family.
Neil Bradshaw owns cattle on the property that are not mortgaged to Rabobank. He previously circulated descriptions and brands of his cattle to all livestock agents and meatworks warning them not to deal with the cattle.
This sorry saga of a foreign bank dispossessing honest, hard-working Australians from their properties is completely sanctioned by the LNP and Labor Party.
Banking industry sources believe Rabobank is acting in league with coal and gas companies to remove land holders in order to easily access known coal and gas reserves in the Pentland district.
“Rabobank will have token buyers lined up ready to buy the properties at discounted prices, leaving the Bradshaws holding the bag with a $1 million or more deficit, which without any means of income they will never be able to pay off,” the source said.
Yesterday Member for Kennedy Bob Katter weighed into this disgraceful episode, contacting the Labor Polce Minister(whose husband is a police inspector) then arriving at the Charters Towers police station to get the Bradshaws out of the watch house.
He was told the Bradshaws had been released just before he arrived.
The clearly upset Bob Katter told Cairns News that the lending practices of the banks are designed to allow foreclosures.
“In this case the bank loaned the family too much money because of droughts and poor cattle prices then the government-instigated live cattle export ban which placed them in an unviable position,” he said
“The banks are a law unto themselves and there is no power on earth to control them.
“I have got hundreds of similar cases on file where farmers have not been able to get any relief from any of the so-called government watchdogs like ACCC, courts, the Reserve Bank ASIC and others that are supposed to offer financially stressed businesses relief.
“Banks like Rabobank continue to flagrantly break the law.
“The Bradshaws are devastated after a lifetime’s work to lose their possessions to a foreign bank or any bank.
“The bank will make a profit of half a million or more from these seizures and the Bradshaws will have to carry a $1 million or more debt for the rest of their lives.
“This assault on an Australian farming family clearly demonstrates the urgent need for a Royal Commission into banking practices.”
from Robert J Lee
How did Rabobank get into Australia to take the place of the Commonwealth Development Bank?
The Netherlands-based Rabobank has its origins in Australia thanks to former Labor Prime Minister Paul Keating and his then wife Annita, a Dutch-born Australian.
Reputedly the world’s largest rural bank, Rabobank reportedly was asked to hang up its shingle in Australia by the Keatings when he was Prime Minister in 1995.
Several years before the Keatings were involved with Danish interests in setting up a string of large piggeries in NSW.
Eventually the business failed and the Keatings were left holding the bag with the Commonwealth Development Bank reportedly for about $4million however according to then Senator Michael Baume, who doggedly pursued Keating over his debts at the time, it could have been much more.
To get out of debt in one foul swoop, Keating wound up the CDB in 1995, and put Rabobank in its place. Senator Baume said at the time the CDB debt was not ever repaid by Keating.
Most Rabobank profits go back to European shareholders. Paul Keating today drip feeds hundreds of thousands of dollars each year from the public purse, his reward for destroying Australian manufacturing and opening up Australia to the rapacious foreign banks.
Even today Keating still maintains Australia should be a ‘service country’, an ideology carried on by Malcolm Turnbull and the Liberal Party.