Category Archives: Banks
Source: A Current Affair
Central Queensland cattle farmer Debbie Viney claims her bank manager told her he would take his own life if he were in her shoes, in the middle of one of the worst droughts in Australian history.
Ms Viney said she met Rabobank executive Peter Stevens at a farm show six years ago, where he told her he could give her a cheaper mortgage than the one she had.
She took him at his word and switched to Rabobank, a multinational bank that specialises in loans to farmers across the world.
Federal Queensland MP Bob Katter said Australia had “the most unprofessional, unrestricted free banking”.
He said mental health issues were a vital issue in rural Australia.
“There’s a farmer committing suicide every four days in this country,” he said.
West Australian Senator in exile, ‘bank basher’ Rodney Culleton is expecting to be re-instated to the senate after the High Court delivered a fatal blow to the long-running ANZ Bank campaign to destroy his career and livelihood
A unanimous decision handed down on March 21, 2018, Alley-v-Gillespie, paves the way for the senate to re-install senators Bob Day and Rod Culleton, however it could have further far-reaching ramifications for other senators removed under s44 of the Commonwealth Constitution.
In essence the HCA has ruled it cannot decide on a question of disqualification or vacancy without first empowering the House under s22 and s47 challenging any question under s44 of the Constitution which states any question of eligibility for an elected candidate to the Upper or Lower House can only be decided by the respective House of Parliament.
Culleton has maintained this argument ever since Judge Barker of the Federal Court in 2016 found Culleton bankrupt because a proposed land deal between himself and Perth businessman and leading Liberal Dick Lester had turned sour.
Lester was reported as spending $1.6 million with Perth law firm King Wood Malleson chasing an alleged
debt of $200,000.
Culleton alleges the law firm and Lester were acting on instructions from the ANZ Bank because he had challenged the ANZ Bank’s bona fides over bank foreclosures through the senate.
Two solicitors, Michael Lundberg and Adam Rompopis who were leading the Culleton offensive, have since departed the firm.
To add insult to injury in June last year, the Federal Government pursued Culleton for $712,000 in expenses and wages incurred while his senate office was in operation.
It was a first ever demand for office expenses by government against a former Member.
On March 7 the Finance Minister Mathias Cormann wrote to Culleton stating he had forgiven the office bill. Culleton said he refused the offer because legally, he remained a senator.
“I did not accept Cormann’s waiver of the debt because I was unlawfully removed from the senate,” Mr Culleton said.
“After the s47 ruling on March 21 I informed the senate President he must recall the senate to deal with the matter of my disqualification which will have implications for other senators who were also disqualified by the High Court.
“All facts must be debated in the House and questions of disqualification or vacancies must be dealt with by the House.
“My argument regarding s47 has never changed and I put the President on notice last week the ‘surrogate’ senators not elected by the people are only filling the void created by the High Court sitting as the Court of Disputed Returns.
“They should pack up and go home. The whole senate has been brought into disrepute by former Liberal Attorney General George Brandis and former President Stephen Parry when Brandis withheld the statement of agreed facts from the senate.
“The new president must recall the senate and deal with the matters.”
The extract below is from a story published by Cairns News on March 8, 2017:
A single judge of The High Court of Australia, on March 2, 2017 struck out Culleton’s appeal against bankruptcy, previously handed down by the Full Bench of the Federal Court.
“I am outraged and disappointed Justice Patrick Keane of the High Court did not ever read my written submissions yet he handed down his finding in spite of me asking for more time to prepare,” Mr Culleton said.
Coincidentally, March 2, 2017 was the 12 month anniversary when he was convicted of larceny in absentia in the Armidale Magistrates Court over the disappearance of a truck key worth $7.50, a charge for which he would not ever have been jailed.
“My counsel clearly told Justice Keane that the High Court did not have jurisdiction to deal with my position in the senate,” he said.
“Counsel told the court only the senate could deal with it and Justice Keane only had to read Section 47 of the Constitution which says any question over the qualification of a senator or a member of either House, ‘….shall be determined by the House in which the question arises.’
“The High Court says it gets its power from the unlawful Australia Act 1986 which was introduced two years after a referendum of Australian people said they did not want the Commonwealth to give its powers to the States.
“This referendum failed but here we have the High Court using powers the states should not have such as the denial of juries.”
Lower House supporter Katter’s comments from January 19, 2017.
KAP Federal Member for Kennedy, Bob Katter who had formed an alliance with Senator Culleton because of his effective attack against unlawful bank foreclosures, waded into the fray last year.
“The more we become aware what has been done to Senator Culleton the more clear it becomes that the Liberal Party counts on the vote of One Nation,” Mr Katter said.
“This morning in the Perth Federal Court, Senator Rod Culleton was granted his right to have an Appeal heard on his bankruptcy ruling.
“The Senator’s Appeal application was a live matter last week when the Senate President removed Senator Culleton from his elected seat in the Senate on the basis of Senator Culleton’s bankruptcy declaration being finally determined, which at the time — it was not.
“Whilst One Nation may have started off the ‘Killing of Culleton’, it is most certainly the Liberal Party who are trying to finish the job. The Liberals are doing exactly the same job on Senator Culleton that they did on Pauline Hanson herself. I was always appalled with what they did to her and publicly said so on numerous occasions. However, it is hard to feel sorry for her now.
“It’s becoming clear now that the Liberals with the support of One Nation moved at lightning speed to bankrupt Senator Culleton and in my opinion, stand him down from the Senate.
“On the issue of bankruptcy, the Liberal W.A Government gets to make the decision (in cahoots with One Nation).
“If Senator Culleton is thrown out over the loss of a $7 key then the Liberals and One Nation do not get to choose his replacement. It goes to the number 2 on the ballot who is a One Nation True Believer, not of the new, ‘James Ashby (Liberal) One Nation’ that we see today.”
On March 8, 2017, Culleton warned of the looming “biggest Constitutional correction since federation.” It has occurred.
The Parliamentary Joint Committee on Intelligence and Security (PJCIS) has commenced a review of the Identity-matching Services Bill 2018 and the Australian Passports Amendment (Identity-matching Services) Bill 2018.The Identity-matching Services Bill 2018 will facilitate the exchange of identity-information between the Commonwealth and State and Territory Governments as agreed by COAG under the Intergovernmental Agreement on Identity Matching Services of October 2017. The Bill will authorise the Department of Home Affairs to collect, use and disclose identification information in order to operate the systems that will support a set of new biometric face-matching services
The Australian Passports Amendment (Identity-matching Services) Bill 2018 will amend the Australian Passports Act 2005 to make Australian travel document data available for the purposes of identity-matching services.The PJCIS Chair, Mr Andrew Hastie MP, said that “It is vital that a nationally-consistent approach to data-sharing is put in place so that law enforcement and national security agencies can use facial images to identify individuals in circumstances where they or others may be under threat”.The Committee intends to report by mid-May 2018.
Chair, Mr Andrew Hastie MP (Canning, WA) on 08 9534 8044 (Electorate office) or (02) 6277 4223 (Parliament House)
Further information about the inquiry can be accessed via the Committee’s website
The Committee invites written submissions to the inquiry to be received no later than 21 March 2018. Information on how to make a submission is available on the Committee’s website.
Both Bills will support the Commonwealth to meet its obligations under the intergovernmental agreement to deliver fast, secure identity-matching services and improve Australia’s national security, law enforcement, community safety and road safety capabilities.
Editor: It should be noted the Coalition of Australian Governments(state corporations) is not recognised by the Commonwealth Constitution of Australia. COAG’s validity is in doubt. So are its policy agreements between state Premiers whose lawful position is CEO of each corporate state.
This huge social experiment fits in with all other earlier technological surveillance leaps taken by Australian corporate government. This time around the United States will follow our lead to enable the financial oligarchy to complete the enslavement of the people, better known as the sheeple.
This massive information exchange has nothing to do with national security. It is all about people control and eugenics.
This article was first published two years ago and has been republished due to readers’ requests
It appears the Mosque will be built at this address after the High Court of Australia threw out an appeal by the Concerned Citizens group last year: 9 Rowena St, East Bendigo VIC 3550
The Bendigo Bank fiasco all started when a group of Bendigo citizens heard about plans to build a huge new mosque in their city. Knowing that a mosque would bring untold trouble, as they had seen happen in other places where mosques were built, they decided to get together and work out ways to oppose the development application.
They formed the Concerned Citizens of Bendigo group and opened a bank account to deposit donations they planned to raise from other concerned citizens.
But they soon found out that the Bendigo Bank is in bed with the Muslims. As opposition to the mosque grew the bank took it upon themselves to censor the protestors. The bank closed the Concerned Citizens account, stating that it did not meet the “Bank’s Community Standards”. This certainly raised a few eyebrows, because the Bendigo Bank markets itself as a Community Bank!
When news of the account closure got out over Facebook it created a huge backlash against the bank. To date, depositors have closed their accounts to the tune of at least $60 million, and many investors have divested themselves of their stock in the bank. The drain has not ended yet. In fact, it is likely to continue for the foreseeable future.
Meanwhile, the bank has stood firm on its decision, claiming the moral high ground. What a shame they can’t understand that We the People can see right through the sham.
In an effort to counter the bad publicity that its actions caused the Bank put up a statement on its Facebook Page:
“In response to recent questions and commentary regarding our decision to close an account. This was a considered decision by our Bank, and we respect everyone’s right to voice their opinions. Equally we have a right to ours, and we want to do business with organisations whose values align with our own. Our Bank values tolerance and inclusiveness, qualities which are an important part of a strong community. This is the only comment we will be making here on this matter. ^Jeanette”
This only served to upset even more people. They flocked to the Stop the Bendigo Mosque Facebook page to voice their displeasure. They also vented their anger on the Bendigo Bank page where some of the comments were, shall we say, less than pleasant.
The account closure prompted the members of the Concerned Citizens group to start digging into the reasons behind it. Working to the old maxim, “follow the money” they soon started to yield results.
While they were digging into the Bendigo Bank’s motives the Concerned Citizens group was not giving up. They approached National Australia Bank (NAB), only to find that the bank declined to open a bank account for them. Not surprising really, as the group quickly learned that NAB is a major shareholder in the Bendigo Bank through its wholly owned subsidiary National Nominees.
So Concerned Citizens went to the Commonwealth Bank. To their surprise they found that the CBA also refused to open an account for them as did Bank Macquarie, and Westpac —all claiming a values clash.
Finally their accountant offered Concerned Citizens the use of one of his accounts at the Macquarie Bank. But their joy was short lived. They quickly found that this account was closed as well and the accountant also lost his standing with that bank as a result. Their first inkling came when they tried to log into the online banking facility only to find that there was no account to log into. When their accountant asked the bank what had happened they told him they had closed the account. However, they did promise that they would mail him the cheque for the missing money.
A supporter has revealed that the Macquarie is handling the sale of the Rural Finance Corporation for the State of Victoria, and that the Bendigo Bank is the only buyer in a no tender no public offering tender sale.
The supporter also found that J.P Morgan had advised the Victorian Government not to go to tender. Strange indeed, until it was found that J.P Morgan is also a shareholder in the Bendigo Bank!
The Bendigo Bank started the ball rolling that has sparked a chain-reaction throughout the banking system. Now, all the banks have closed ranks to protect themselves against We the People, not understanding that we have the power to stop them dead in their tracks and uncover every bit of dirt on them there is. They have prodded the tiger and now we are baring our teeth.
Not surprisingly, the Politicians will only side with the perceived winners, and to date that has been the Banks. However, this is likely to change. We the People are uniting as the murky facts in this distasteful drama are pealed back, layer by stinking layer.
Mike Hirst, the Bendigo Bank’s CEO, tried to explain to Kent Baylay of the Gold Coast Sentinel in an “off the record” interview that was later uploaded to the internet that the bank made a morally based decision against a group they considered a bunch of racists.
Mike Hirst didn’t let the facts get in the way of his attempted whitewash. Like just about everything that come out of his mouth he appeared less than truthful, to use the words of Dr. Alexander Douglas MP.
Dr. Douglas deserves the title The Honourable Member for Gaven in Queensland for his revelations on the Alan Jones radio show exposing the extent of the corruption within the banking and political systems of Australia.
As a result of his revelations the true facts are emerging and we are connecting the dots. The Bendigo Bank has been lying through its collective teeth…and then some.
It transpires that the property that surrounds the intended site of the Mosque in Bendigo is actually owned by a company controlled by an ex-Director of the Bendigo Bank and Chairman of Bendigo Telco. Mr. Don Erskine with his son Mark are involved in the Brickworks development.
At first glance, it looks like closing the Concerned Citizens account was just a favour done by Mike Hirst and the Board of Directors of the Bendigo Bank for an old friend. Obviously, they wanted to silence any opposition. After all, what is the small matter of closing a customer’s bank account when weighed against a $4 Million windfall?
Bend Over Bendigo Bank, the dhimmi bank
Next, the Concerned Citizens found out that the Bendigo City Council is about to sit in Chambers to discuss re-zoning all that land to high density residential.
The land owner and his partners stand to make a SUBSTANTIAL capital gain out of that deal. No wonder this mosque application has generated so much controversy.
Once the mosque is built hundreds, if not thousands more Muslims will move into the area. They will want somewhere to live: And where better than right next door to the mosque?
Perhaps this explains why the mosque application proposes such a LARGE facility. It’s not just for the few dozen Muslims living in Bendigo today. They are planning on building up a substantial Islamic presence there.
What does this mean for the local residents?
Well, as we have already seen, if your business or group dares go against the plans of this mob you will be targeted, just as the Concerned Citizens Group were, and told to take your business elsewhere. Of course, they will make sure that it is just as impossible to open a new business or bank account, as the Concerned Citizens Group has. Since being rejected by the Bendigo Bank they have been unable to open a new account at any bank in Bendigo!
The consequences, if the mosque is approved, will be catastrophic for any Australian businesses currently operating in the area. They will soon find that they are targeted by the Muslims in a concerted effort to move them out so that Muslims can move in. This will happen in a number of ways. Businesses will be broken into, people will be attacked, rubbish will be dumped outside their doors, windows broken, cars parked to block access.
If you think this is an over-reaction you only have to look at what has happened in other western countries. This is a standard practice wherever a mosque is built. Residents are forced to move and if they refuse their lives are made such hell that in the end they are happy to move even if they lose money selling their property. In some cases, people are killed.
As more Muslims move into the area traffic problems will increase. Crime will become rampant…Muslims are not exactly always law abiding citizens. They put their Islamic sharia law before any western laws. Their loyalty is not to the country they live in but to Islam and sharia law.
Noise pollution will become a burden on all residents. The call to prayer will be blasted out of loudspeakers from the mosque from early morning to late in the evening.
But all this is in the future.
The biggest worry for Bendigo residents today is the impending City Council meeting to approve the application to re-zone that all important land around the proposed mosque. If this happens then there will be no stopping the mosque or the subsequent destruction of the peace and tranquillity of Bendigo.
Is this what Bendigo residents want?
We are calling on all concerned citizens to attend that City Council meeting and make sure that their objections are heard, loudly. (All objectors will be notified or inboxed through the Stop the Mosque Facebook page to attend.)
Submissions called to investigate the unlawful removal of Senator Rod Culleton from the senate earlier this year.
What really happened? Why did the Attorney General Liberal George Brandis, intentionally mislead the senate about Culleton and how did the Senate President Stephen Parry(former Port Arthur undertaker) remove Culleton without a motion of the senate? Section 47 of the Commonwealth Constitution of Australia says only the senate can rule on the eligibility of a senator.
Brandis is hightailing it to London as the new High Commissioner. He will no doubt be called to give evidence. He has a problem.
‘On 6 December 2017, the Senate resolved that the following matter be referred to the Joint Standing Committee on Electoral Matters for inquiry and report by 6 February 2018:
The implications of recent decisions by the Court of Disputed Returns concerning section 44 of the Constitution on questions referred by the Parliament under section 376 of the Commonwealth Electoral Act 1918, with particular reference to:
(a) the decisions in connection with the disqualification of former Senators Bob Day and Rodney Culleton;
(b) a regime for disclosing information relating to aspects other than section 44(i), for which the Parliament has already provided;
(c) the form such a process might take and how it could be implemented; and
(d) any related matters.’
Committee Secretariat contact:
Joint Standing Committee on Electoral Matters
PO Box 6021
Canberra ACT 2600
Phone: +61 2 6277 2374
Fax: +61 2 6277 4773
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: