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Government Bank Inquiry calling for Public Submissions

In case you were not aware the government House of Representatives on June 4th 2015, referred the terms of reference listed below, relating to the impairment of customer loans, to the Parliamentary Joint Committee on Corporations and Financial Services for inquiry and report by 31 March 2016.

sherlockWhat this means is that practices of banks and other financial institutions using a constructive default (security revaluation) process to impair loans by devaluing property held as security increasing the loan to equity ratio to suit their underhanded foreclosure agenda.

Be aware of previously conducted Parliamentary Inquiries that with considerable taxpayer funding did not halt the standover merchants of finance. Take time to read terms of reference and conclusions to get the picture how thick the whitewash was applied.

Joint Parliamentary Committee on Corporate and Financial Services4/5/2009 – Downloador read pdf report [HERE]

Senate Inquiry (Economics Committee) into the role of Liquidators Administrators18/12/2009 – Download or read pdf report [HERE]

The Effectiveness of the Australian Securities and Investment Commission23-7-2013 – Download or read pdf report [HERE]

The committee is looking for submissions from the public and the closing date is 21st August 2015.

I would suggest that everyone read submissions already presented with all farmers reading the 3rd submission put forward by Mr Richard B. Wright and Mrs Barbara Ann Wright. It’s all about ANZ destroying a very successful cattle farming business where bank receivers – sent cattle from a registered stud for slaughter – sent registered horses from a stud to be sold at dogger prices, and much more. [Click Here].

It is important for home owners, business owners and farmers, who have had a lender manufacture a default, to make a submission. However, pay particular attention to the terms of reference listed below, keeping your submission relevant to those terms or your efforts will be deemed not relevant.

Terms of Reference:

  1. practices of banks and other financial institutions using a constructive default (security revaluation) process to impair loans, whereconstructive default/security revaluation means the engineering or the creation of an event of default whereby a financial institution deliberately reduces,through valuation, the value of securities held by that institution, thereby raising the loan-to-value ratio resulting in the loan being impaired;
  2. role of property valuers in any constructive default (security revaluation) process;
  3. practices of banks and other financial institutions in Australia using non-monetary conditions of default to impair the loans of their customers,and the use of punitive clauses such as suspension clauses and offset clauses by these institutions;
  4. role of insolvency practitioners as part of this process;
  5. implications of relevant recommendations of the Financial System Inquiry, particularly recommendations 34 and 36 relating to non-monetaryconditions of default and the external administration regime respectively;
  6. extent to which borrowers are given an opportunity to rectify any genuine default event and the time period typically provided for them to doso;
  7. provision of reasonable written notice to a borrower when a loan is required to be repaid;
  8. appropriateness of the loan to value ratio as a mechanism to default a loan during the period of the loan; and
  9. conditions and requirements to be met prior to the appointment of an external administrator; and
  1. in undertaking this inquiry, the Committee take evidence on:
    1. the incidence and history of:
      1. loan impairments; and
      2. the forced sale of property;
    2. the effect of the forced sale of property in depressed market conditions and drought;
    3. comparisons between valuations and sale price;
    4. the adequacy of the legal obligations on lenders and external administrators (including s420A of the Corporations Act 2001) to obtainfair market value for the forced sale of property; and
    5. any related matters.

On 4 June 2015 the committee resolved that:

  • in conducting the inquiry the committee will not investigate or seek to resolve disputes between customers and banks; and
  • where the experiences of customers may inform the committee about the practices of banks, the committee welcomes submissions that explicitlyaddress the terms of reference.

Link to terms of reference – [HERE]

How to Making a Submission [Download pdf]

Committee Secretariat contact:

Committee Secretary
Parliamentary Joint Committee on Corporations and Financial Services
PO Box 6100
Parliament House
Canberra ACT 2600

Phone: +61 2 6277 3583
Fax: +61 2 6277 5719
corporations.joint@aph.gov.au

A lesson in economics

spannerIt’s a slow day in the small town of Pumphandle and the streets are deserted.
Times are tough, everybody is in debt, and everybody is living on credit.A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.
As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.
The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.
The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute,
who has also been facing hard times and has had to offer her “services” on credit.
The hooker rushes to the hotel and pays off her room bill with the hotel Owner.
The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything.

At that moment the traveler comes down the stairs, states that the rooms are not satisfactory,
picks up the $100 bill and leaves.

No one produced anything. No one earned anything…..!

However, the whole town now thinks that they are out of debt and there is a false atmosphere of optimism and glee…….

And that, my friends, is how a “government stimulus package” works!