The Senate Economics Legislation Committee on 14 February initiated an inquiry into the Banking System Reform (Separation of Banks) Bill 2019.
This landmark senate inquiry was ignored by big media which preferred sensationalising the dust-up between One Nation’s James Ashby and its former senator Brian Burston in the halls of the senate.
from Citizens Electoral Council
This is a major blow for the banks, which had assumed that the Hayne Report from the banking royal commission, which did not recommended structural separation, would be the final word on the issue—bank shares soared on the news they wouldn’t be broken up. They celebrated too early, however.
On 12 February, a week after Hayne’s report became public, Senator Pauline Hanson introduced into the Senate the same bill that Bob Katter had introduced into the House of Representatives in June 2018. This bill was carefully drafted by the Citizens Electoral Council based on the USA’s successful Glass-Steagall Act of 1933 and the updated “21st Century Glass-Steagall Act” bill currently before Congress, adapted for Australia’s financial system.
The bill separates traditional commercial banks that take deposits and make loans from all other financial activities. This solves the problems of both vertical integration—the gross conflict of interests involving banks advising their customers to buy products from other businesses the banks also own; and horizontal integration—banks mixing commercial banking with risky investment banking that puts customer deposits, and the whole economy, in danger. The bill also brings the failed bank regulator APRA (Australian Prudential Regulation Authority) under much tighter parliamentary control.
Bank separation has the support of most cross-bench politicians in Parliament, including the Greens, Centre Alliance, One Nation and independents. It is also supported by key backbenchers in all of the major parties. The Labor Party had said they would support it if recommended by the royal commission; however, sticking with that position is untenable. They know that Commissioner Hayne’s terms of reference forbade the investigation of “structure”, which Labor had intended a royal commission would have looked at. Also, even Labor’s senior statesman Paul Keating has strongly criticised Hayne for not recommending structural separation.
(Hayne’s recommendation against structural separation is a scandal: that section in his report includes a blatant lie, and experts familiar with public inquiries have accused Treasury of a “dirty trick” to rig the outcome in favour of the banks.)
The opposition to separation comes from the big banks, the discredited regulators which are captured by the banks, and the leadership of the major parties who take huge donations from the banks. The banks wish to keep the parasitical structure that has enabled them to amass huge profits, not only through gouging their customers but also through gambling with their deposits, which they use to underwrite their huge derivatives bets that collectively amount to more than $40 trillion. There is a revolving door between the banks and regulators: high-powered executives from banks take key positions in the regulators, such as ex-UBS chief John Fraser taking over as Treasury Secretary in 2013-18 and former senior investment bankers holding six of the nine positions on the executive of bank regulator APRA; and regulators retire to plum banking positions, such as former Treasury Secretary Ken Henry becoming chairman of NAB and former RBA governor Glenn Stevens joining the board of Macquarie Bank. And not only do the big banks donate to the major parties, but so does the Australian Banking Association which lobbies for them, as do the Big Four global accounting firms which audit the major banks and have a track record of covering up dodgy bookkeeping by banks all over the world.
Make a submission
This inquiry is the chance for the Australian public to force the debate on banking separation that the royal commission was not allowed to have. The Senate Economics Legislation Committee is taking submissions from the public, so every concerned Australian should make a submission.
Here are some points to note about the Glass-Steagall principle of full banking separation:
- It works, as proved by its success for almost 70 years (1933-99) in America;
- It ends the conflicts of interests of vertical integration, which is the only way to ensure the misconduct exposed by the royal commission can’t happen again;
- It protects deposits from the dangers of speculation, which boosts confidence in the banking system;
- It stops banks from diverting credit into unproductive financial speculation, thus making more credit available for lending to neglected sectors such as small business, industry and farming.
The submissions deadline is 12 April, but don’t delay—make your submission today!
How to make a submission
Written submissions can be delivered to the Committee in two ways: 1) by physical post; 2) online.
- Post your written submission to: Senate Standing Committees on Economics
PO Box 6100
Canberra ACT 2600
Phone: +61 2 6277 3540
Fax: +61 2 6277 5719
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.
What 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 Services – 4/5/2009 – Downloador read pdf report [HERE]
Senate Inquiry (Economics Committee) into the role of Liquidators Administrators – 18/12/2009 – Download or read pdf report [HERE]
The Effectiveness of the Australian Securities and Investment Commission – 23-7-2013 – 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:
- 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;
- role of property valuers in any constructive default (security revaluation) process;
- 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;
- role of insolvency practitioners as part of this process;
- 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;
- extent to which borrowers are given an opportunity to rectify any genuine default event and the time period typically provided for them to doso;
- provision of reasonable written notice to a borrower when a loan is required to be repaid;
- appropriateness of the loan to value ratio as a mechanism to default a loan during the period of the loan; and
- conditions and requirements to be met prior to the appointment of an external administrator; and
- in undertaking this inquiry, the Committee take evidence on:
- the incidence and history of:
- loan impairments; and
- the forced sale of property;
- the effect of the forced sale of property in depressed market conditions and drought;
- comparisons between valuations and sale price;
- 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
- any related matters.
- the incidence and history of:
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:
Parliamentary Joint Committee on Corporations and Financial Services
PO Box 6100
Canberra ACT 2600
Phone: +61 2 6277 3583
Fax: +61 2 6277 5719
Please join this campaign to stop the banks from stripping our personal assets including our homes!
A Muttaburra grazier has his homestead surrounded by a dozen police demanding his guns be handed over because he ‘forgot’ to renew his gun licence. The real story is the NAB an Grab bank is about to foreclose on the property and they wanted no resistance. Qld cops for hire! Makes their KPI’s look good! Welcome to the fascist state!
Bill Bibbulmun activist from OzResistance.com in this weekly report exposes child agency fabrication to remove political activist exposing WA government – Wayne Glew CPO speaks on engineered government violation of our constitution – Bill plays video footage of a WA cop deceiving and fraudulent attempt to serve documents on prominent activist Robert Paul CPO …..