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In Australia the Bank Robs You!

If you rob a bank, you go to jail. If the bank robs you, no banker will go to jail and they won’t even pay a fine. Maybe it has something to do with the Big 4’s top shareholders – Vanguard, Blackrock, State Street, JP Morgan, Charles Schwab, HSBC and others.

After 6 years of inquiries and a Royal Commission, the final Financial Accountability Regime Bill contains no accountability for bad bankers. We supported Senator McKim in trying to make sure bankers could be liable for personal fines if they misbehaved but the Greens caved, joining Labor to pass through the bill without the penalties.

One Nation won’t stop our fight to make bank executives accountable and find justice for their victims.

Transcripts | Speech and Questions

Yesterday, as a servant to the people of Queensland and Australia, I spoke on Senator McKenzie’s matter of public importance regarding the decision by Minister Catherine King to give Qantas a substantial commercial advantage in the Qatar Airlines application for more flights to Australia. I pointed out that the Qatari government owns Qatar Airlines, while Qantas’s most influential shareholders are the merchant banks that invest money on behalf of the world’s richest predatory billionaires. I raise the question: who does this government represent? Is it everyday Australians or foreign wealth?

Here we are again, the very next day, debating the Financial Accountability Regime Bill 2023—a bill devoid of financial accountability. A financial accountability regime bill with no accountability is a bill that could more rightly be called the ‘Letting bank executives do whatever they want bill 2023’. Banking executives in Australia are a protected species for the same reason Alan Joyce and Qantas are protected: crony capitalism.

The big four banks have almost identical major shareholders. They have the same owners as Qantas, including Vanguard with $15 billion in shares in the big four banks, BlackRock with $5 billion, and then the usual suspects with smaller holdings, such as State Street, JP Morgan, Charles Schwab, HSBC and others. With these common owners making up a controlling share, it means we do not have four big banks. We have one monstrous bank with four divisions working under four logos. Why would the banks compete with each other when that competition will lessen their profits and, in turn, reduce the flow of dividends to these investment funds?

Our banking legislation, our checks and balances, were not written for an eventuality where investment funds with A$40 trillion in funds available bought controlling shareholdings in all the big four banks and used those shareholdings for their own financial benefit in a way that reduces competition and has reduced competition. Investment funds get assistance from complicit executives. Those complicit executives know the deal when those same investment funds elect directors who then employ the executives. The same executives know that they have to follow orders to keep their jobs and their fat pay cheques. The same executives then pursue the now infamous ESG measures to ensure that a bank lends only for projects that meet so-called environmental, social and governance standards. ESG is shorthand for using banks to enforce political objectives, like enforcing net zero by defunding coal, gas and most mining while lending for speculative investments in hydrogen and similar unproven fantasy technology.

Why would banks take a course of action that puts shareholders’ funds at risk? It’s because these big investment funds own the companies that profit from those investments. ESG is nothing more than the billionaires who run the world using their ownership of our banks to lend to themselves for risky investments that, if they fail, will reduce their equity. It will reduce the equity of mum and dad investors more. They carry the risk. Everyday Australians are shouldering the risk of these misinvestments that benefit only the world’s most wealthy individuals. As George Carlin famously said, ‘It’s a club, and you’—everyday Australians—’ain’t in it.’

I wonder if whoever made the decision to take personal financial penalties out of the financial accountability regime is in the club. Are you? Those penalties were in this legislation when the Turnbull government introduced it—although, of course, it is not being used, because nobody in the Liberal Party or the Labor Party has the guts to take on these investment funds—least of all, it would appear, Assistant Treasurer, Stephen Jones, who authored this bill.

Everyday Australians are feeling the pain from the failure of this government to govern without fear or favour. Bank branch closures and de-banking are hitting everyday Australians hard, and the banking cartel just sit back and count the profits—record profits. The most glaring exclusion from this bill is the absence of civil penalty provisions such as fines for bankers. To translate that into plain English, it means that senior bankers who behave badly will not, under this bill, face personal fines—no fines at all.

Making bad bankers pay big fines isn’t an idea One Nation and the Greens pulled out of thin air. The Treasury department was the one that initially proposed it. The proposal paper for the financial accountability regime that Treasury published in 2020 included civil penalties for bad bankers. The big bank lobby circled the wagons, mustering all of their high-powered lobbyists and industry groups to browbeat Treasury into removing the personal civil penalties. When the Morrison coalition government introduced the 2021 version of this bill, civil penalties had disappeared. Labor had a chance to fix that when they introduced their versions of the bill, first in 2022 and now with this one in 2023. Instead, the Assistant Treasurer and Minister for Financial Services, Stephen ‘I love the bankers’ Jones, has joined Labor at the hip with their crony-capitalist banking suck-up mates in the coalition.

This bill’s time line is a glaring example of what’s wrong with our country’s governance. In 2017 I chaired the inquiry of the Senate Select Committee on Lending to Primary Production Customers, while at the same time we called for a royal commission into the banks. The horror stories we uncovered in that Senate inquiry were enough to make my skin crawl and my stomach churn: banks stealing land and even livestock straight out from under farmers’ feet, cattle rustling, foreclosing on properties where there hadn’t been breaches of loan repayments, preying on vulnerable people, stealing whole farms, and rewarding mates amongst insolvency practitioners and other farmers. Rabobank, after being fined hundreds of millions of dollars for serious breaches in America, was destroying families in our country. All under your watch.

The evidence of banking practices we uncovered during that inquiry forced the government’s hand. With the testimony of those victims, the government had no option but to call the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. This bill now before us supposedly implements recommendations of that royal commission. What a joke! It’s been more than six years since the Senate select committee I chaired was established. At the end of that long road not a single banker has been thrown in jail for their criminal actions—not one. To my knowledge, not a single banker has paid any civil penalty for the outright fraud uncovered in the royal commission—not one. At the end of the long road to this bill we have something that still will not impose personal civil penalties on bankers who breach their accountability regimes. And you guys just let it continue. If you want to know who holds all the power in this country, look no further than the fact that civil penalties have been dropped.

One Nation will be supporting Senator McKim’s amendment to insert civil penalties back into the bill, but, alas, that failed. If that amendment had been successful, we would have supported the bill. Without that amendment this bill does not go far enough to place accountability on misbehaving bankers, and we cannot support its passage. Minister, why does this bill not contain civil penalty provisions for senior bankers who fail their accountability obligations?

Minister Gallagher: Thank you and I acknowledge Senator Roberts’ speech. I don’t agree with large parts of it but in this bill there are penalties within the legislation before us.  They will, individuals can lose deferred remuneration – they can be disqualified from being able to work in the industry and there are individual civil penalties for assisting an entity’s contravention of obligations.

Senator Roberts: Minister, are you aware who owns our big four banks? Let me read the list of shareholders of those banks right now so that you may have some idea of where I’m going. Shareholders of National Australia Bank Limited are the Vanguard Group, with 3.3 per cent; BlackRock Fund Advisors; Vanguard Investments Australia Ltd; Norges Bank Investment Management; State Street Global Advisors; Colonial First State Investments; Goody Capital; BlackRock Advisers; Netwealth Investments; and Caisse de depot et placement du Quebec. Let me read them for the Commonwealth bank: Vanguard Group, BlackRock Fund Advisors, Vanguard Investments Australia, Norges Bank, Goody Capital, Australian Foundation Investment Company Limited, BlackRock Advisors, Netwealth Investments, FIL Investment Management and Vanguard Global Advisors. Westpac: the Vanguard Group, Vanguard Investments Australia, BlackRock Fund Advisors, Norges bank, State Street Global Advisors, Goody Capital, Advance Asset Management, BlackRock Advisors, Australian Foundation Investment Company, Netwealth Investments. ANZ group: the Vanguard Group—is there an echo in this room? BlackRock Fund Advisors—there’s that echo again! Vanguard Investments—it’s still here! State Street—another echo! Goody Capital—another echo! BlackRock Advisors—another echo! This place is an echo chamber, and that’s probably very appropriate. There’s Netwealth Investments—another echo! Dimensional Fund Advisors—they’re only in ANZ. There’s Vanguard—another echo! BlackRock investment—another echo! Minister, are you aware of this?

Minister Gallagher: I’m certainly aware there’s millions of shareholders in Australia’s big banks and across Australia’s financial system, yes.

Senator Roberts: So you allow it to continue with no accountability. It seems we don’t have 4 big banks. We have one monstrous bank working under 4 logos, 4 divisions. There’s no, there’s no difference between their primary products and services and their ways of operating. Their product, services and operations are similar. So similar that I recognised, as Chair of the Senate Select inquiry into lending the primary production customers back in 2017, that they operate as one. They are a cartel. Are you aware of the common ownership and common practice, product and services of these banks?

Minister Gallagher: Well, that information is available, as you know, to all of us.  It’s transparent around shareholding in big companies in Australia.  So I’m aware and you are aware, and you’re aware because that information is available.

Senator Roberts: The difference, Minister, between you and I is that I want to do something to fix it. Minister, what will your government do about protecting Australians from these parasitic predators?

Minister Gallagher: Well, I don’t agree with the language that you’ve used Senator Roberts.

Senator Roberts: The Minister says, in effect, that she agrees they are parasitic predators. So legislation needs to have teeth. Without teeth, massive regulation protects the Big Four from accountability because of the complexities needing deep pockets for deep pockets for lawyers. A farmer, small businessman, even a woman, cannot afford the lawyers that the big banks resort to at the drop of a hat because they’re protected by deep, complicated legislation. These barriers are barriers to accountability. Are you aware of that? And what do you plan to do about it?

Minister Gallagher: Well, no, I don’t agree with that. The bill we are debating or we completed debated of yesterday is the Financial Accountability Regime Bill. So no, I don’t agree with that. And I do believe since the Royal Commission there has been significant increase in and protections for us through legislative reform like this to make sure that we get a properly regulated and accountable financial system. This is one piece of that. So no, I don’t agree with you.

Senator Roberts: Minister, these regulations provide barriers to entry of new competition to the Big Four or the Big One. Are you aware of that and what do you plan to do about it?

Minister Gallagher: Sorry if your questions about do I think this is a barrier to competition? No.

Senator Roberts: That wasn’t my question. The massive amount of complex regulations, they’re protecting the big four banks, they’re a barrier to competition.

Minister Gallagher: I mean in a sense you’re arguing in a circle because we are putting in place legislative protections and regulations to make sure there is a stronger financial system in this country to deal with some of the problems that we saw come through in the lead up to and during the banking Royal Commission to protect consumers and to make sure that we have a strong, profitable, well led banking system financial system in this country. This legislative response is part of that. The regulations are there to offer that protection. They’re not there to limit competition.

Senator Roberts: They’re effectively working as such Minister. The government’s bank deposit guarantee scheme is worthless. Firstly, it’s not automatic, because the Treasurer has to invoke it and if he doesn’t, there’s no guarantee of bank deposits. Secondly, it covers only a maximum of $80 billion out of $1.3 trillion in bank deposits. For example, the Commonwealth Bank, I understand, has 30 million deposit accounts, meaning an average of $670 per deposit. Meanwhile, the previous government passed a bank bail-in provision that your party supported. These are other ways in which banks avoid accountability for their mistakes and greed. They take none of the risk and all of the profit. They have no penalty for excessive greed causing failure, because government bails them in. When will your government start protecting Australian citizens and revoke the bail-in, for example?

Minister Gallagher: Well, the work that has come out of the royal Commission, of which this is a part of, is precisely about that, Senator Roberts.

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Australia’s Bank Guarantee Scheme – Are You Covered?

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At the May/June Senate Estimates, I asked the Australian Prudential Regulation Authority (APRA) about their accountability and responsibilities for financial services and then probed further into depositor guarantees. I wanted to try and establish whether Australians’ savings are secure in the event of a financial crash. Have a listen.

APRA made the point that Financial Claims Scheme (FCS) is really a last resort. Australian banks and financial institutions are required to have practical plans in place to ensure they can get up and running again in the event of a financial crisis. If that were to fail, however, account holders would be covered for the first $250,000 of their deposited funds per institution.

What this answer failed to mention is that the Financial Guarantee Scheme (FGS) only kicks in once the bank fails. At this point, the bank would have been able to use bail-in provisions to use depositor’s funds to save themselves.

The FCS is also unfunded. The government has not put any money aside to fund the scheme — there is a limit of $20 billion per bank, which is only 10% of what would be needed for just one of the Big-4 banks alone. The Treasurer is not required to trigger the FCS if they don’t want to spend the money.

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Time to Give Our Banking Cartel Some Real Competition

My latest article in The Spectator …

No amount of regulation has been able to force our banks to behave ethically because the banks will always have smarter lawyers than the government. The only way to restore fair banking practice is free market competition.

Suncorp Bank is on the market and the ACCC refused ANZ permission to buy it. The Future Fund should step in, buy Suncorp and turn it into a people’s bank. Suncorp should then be run in a way that guarantees cash, face-to-face banking services through a branch or Australia Post outlet, prohibits de-banking and decides loan applications on financial merit alone, rather than ESG and other political measures.

Read Full Article Here
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RBA’s Ties to US Dollars Leaves Australia Exposed

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The BRICS member states are abandoning the United States’ dollar and other nations are seeking to join the BRICS bloc, which accounts for 25% of world trade and is expected to grow to 50% by 2030. The US dollar is now just 58% of all world trade. As the world moves away from the US dollar its value may fall.

Our Reserve Bank holds AU$35 billion in foreign reserves and half of that is in US treasuries securities. I asked the Governor whether the RBA had modeled the probability of that fall on Australia’s US holdings and whether they intended to invest in more US treasuries. The governor expects Australia’s economy to grow and foreign holdings to increase — as part of risk management however they are looking at other currency markets in line with the RBA’s key bench marks, but without speculating on any future currency fluctuations.

The BRICS group of major emerging economies — Brazil, Russia, India, China (the four founding members of the bloc) and South Africa is holding its 15th heads of state and government summit in Johannesburg on 22nd August. Founded as an informal club in 2009, it was initially created as a platform to challenge a world order dominated by the US and its allies with a focus on economic cooperation and increasing multilateral trade and development. As many as 23 countries have now formally applied to join the group and many more are said to be interested.

With more countries investing in and accumulating greater gold reserves and widespread reports that the BRICS alliance is working on creating a new gold-backed trading currency, I asked the Governor if Australia is planning to increase our gold reserves.

The answer was no. “We’ve got our gold reserves and we haven’t bought and sold for a long time, and we have no intention of changing that.”

Transcript

Senator Roberts: I have a question about the Reserve Bank’s reserves. Let me get to it by giving some background. At the BRICS meeting in Cape Town on 2 and 3 June, 13 nations will formally apply to join BRICS, which is currently Brazil, Russia, India, China, South Africa—and Saudi Arabia, with an each-way bet. Candidate nations include Mexico, Argentina, the United Arab Emirates, Egypt, Indonesia and Iran. BRICS is now the world’s largest trading bloc, accounting for 25 per cent of world trade which is expected to grow to 50 per cent by 2030. And it’s big in oil.

BRICS member states are abandoning the US dollar in favour of using their own currency or the Chinese renminbi in an environment where other countries, including Australia, are doing the same thing. Pakistan is now buying Russian oil and renminbi. The US dollar is now denominating just 58 per cent of all world trade. The United States has printed $10 trillion over the last seven years, doubling their M2 money supply. That increase has been absorbed in part by an increase in international trade.  As the world moves away from the US dollar the value of the US dollar may fall. The Reserve Bank holds United States treasuries and dollars. Have you modelled the effect on your balance sheet from that probable fall in the value of US holdings.

Mr Lowe: Not as a result of these other global changes you’ve talked about. We spend a lot of time and part of our risk management processes looking at volatility in currencies, because currencies move around all the time, don’t they? That affects the value of those assets on our balance sheet, so we model that from a risk-management perspective. Despite the developments you’re talking about, most countries still hold the bulk of their foreign reserves in US dollars. There’s diversification going on, which is good, but the US dollar is going to remain the dominant currency for some time.

Senator Roberts: What is the value of Reserve Bank holdings of US dollar and US treasuries in Australian dollars?

Mr Lowe: Our total foreign reserves at the moment I think are the equivalent of U$35 billion. What’s the share, Brad?

Dr Jones: I think it’s 55 per cent.

Mr Lowe: Roughly half of that $35 billion is allocated to US dollars, and then we have holdings of yen, Korean won, euros and rmb.

Senator Roberts: What about treasuries?

Mr Lowe: When we hold US dollars we invest it in US Treasury securities. We don’t invest in bank deposits or any other securities. We invest in US government securities.

Senator Roberts: What’s the reverse holding of Australian government currency and bonds held by the US government or their agencies?

Mr Lowe: We don’t have data on that.

Senator Roberts: Could you get that on notice?

Mr Lowe: No.

Senator Roberts: You don’t have it?

Mr Lowe: We don’t have data on specific holdings of other countries.

Dr Jones: If I understood your question correctly, Senator, the US holds euros and yen, from recollection, but not in large quantities.

Senator Roberts: While that arrangement helps with international stability across holdings, it is a method for backdoor quantitative easing. Does the Reserve Bank expect to increase your holding of US treasuries in the next 12 months?

Mr Lowe: We’ve just done an exercise where we were looking at how much of our balance sheet should be held in foreign assets. We said we’ve got $35 billion at the moment. As the size of the economy grows you would expect that to gradually increase. But, no, nothing dramatic. As the economy grows and the nominal value of the Australian economy gets bigger, then you would expect a bigger portfolio in US dollars and foreign currency.

Senator Roberts: The Reserve Bank has a mission to anticipate movements in major trading partners and in world markets. As it affects your provisioning and portfolio, does the Reserve Bank anticipate being affected by any out of the ordinary moves in financial markets in connection with the US economy or the US dollar over forward estimates?

Mr Lowe: We’ve recently been focused on the US debt limit issues in the US. If an agreement had not been reached there, that would have had implications for currency markets and economies around the world. So that’s one thing that we’ve looked at carefully. It looks like that has been resolved, thankfully. And, just as part of our general risk management exercise, we’re looking at developments in other economies and their implications for currency markets in own economy.

Dr Jones: As a general rule though, the way the bank has operated its reserves has changed quite a bit over the last, say, 25 years, and now the bank effectively sets key benchmarks and sticks to them. There are not big discretionary decisions going on every day. There’s wild speculation going on at the Reserve Bank, I can assure you, about the future value of exchange rates.

Senator Roberts: I wasn’t implying that. Worldwide purchases of US treasuries by central banks has fallen $600 billion in 2022 as compared to a baseline year of 2013. That’s just arbitrary—2013. Purchases of gold have increased $300 billion. So something is going on that Australia would be prudent to hedge against. Is the Reserve Bank increasing its gold reserves as an each way bet against BRICS introducing a gold brick currency of some form?

Mr Lowe: No, we’re not. We’ve got our gold reserves. We haven’t bought and sold for a long time and we have no intention of changing that at the moment.

Senator Roberts: Thank you, Governor.

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The inquiry into Bank Closures in regional Queensland has kicked off this morning in Cloncurry.

Previously, Westpac abruptly announced their plans to close the branch that deals with millions of dollars in agribusiness and mining contractors, with no consultation.

When this inquiry announced we would be coming to Cloncurry to hear from locals and interrogate Westpac, they suddenly reversed their decision to abandon Cloncurry.

While the backdown is a small win, there are still dozens of regional branches on the big banks’ chopping blocks. Despite taking millions of dollars from the bush, the banks are happy to keep hollowing out regional town services to save a few cents.

Residents are forced to travel hundreds of extras kilometres to bank and community events are put on hold because they can’t get a decent cash float in their own town.

Bank profits are at record highs, the Australian community expects that they do the bare minimum for our regional towns and they are failing them.

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Only $80 billion of $1.2 trillion in deposits protected

Our banks are bastards, but they are well capitalised. Yet, if they were to run into trouble as is happening overseas, our government is only guaranteeing 7% of Australian money in the bank.

Transcript

Senator ROBERTS: My question is to the Minister for Finance, Senator Gallagher. Last week I asked questions about the funding for the deposits guarantee scheme, which was designed to protect the money in the bank accounts of everyday Australians—capped at $250,000 per account, $20 billion per bank and $80 billion total. Minister, when the scheme was brought in, the eligible deposits being protected were $650 billion. According to statement 9 of Budget Paper No. 1 of the October 2022 Labor budget—your budget—eligible deposits are now $1.2 trillion. How can $80 billion possibly protect $1.2 trillion in deposits?

Senator GALLAGHER (ACT—Minister for the Public Service, Minister for Finance, Minister for Women, Manager of Government Business in the Senate and Vice-President of the Executive Council): I think this question goes to some of the concerns that we’re seeing in global financial markets at the moment, and the impact on some banks overseas and some concerns that Senator Roberts is raising about the potential for impact here in Australia. The answer is the same as I gave last week.

Senator Rennick: You don’t know how to count.

Senator GALLAGHER: Thank you, Senator Rennick. Would you like leave to speak to this question or am I allowed to? You’d like to, would you?

The PRESIDENT: Minister Gallagher, address your comments to those opposite through the chair. Senator Rennick, resume your seat.

Senator Watt: Tell us about your Masters in Applied Finance!

Senator GALLAGHER: I know responding to interjections is disorderly, but Senator Rennick’s got verbal diarrhoea, it seems, this question time. He can’t keep it in. As I said last week, this is something the government is monitoring closely. In fact, the Treasurer is being briefed twice a day on what’s happening overseas, and is also being provided with feedback from regulators and from the banking system here. I think it is very good, and I would think that it’s something that this Senate would welcome, that our financial markets and our banking system are well regulated, well led and well capitalised, with good liquidity, and we are not seeing the issues that are being seen overseas. I did undertake, and I’m not sure if we’ve done this, to provide you with a written response to the question that you raised last week. I’ll chase that if it hasn’t got to you, as well as anything further I can provide in relation to the answer I’ve just given.

The PRESIDENT: Senator Roberts, your first supplementary?

Senator ROBERTS: My constituents, as I expressed last week and in the last question, are concerned. Minister, the protected amount is not indexed and, because of inflation, would need to be increased to $380,000 per account and $115 billion overall just to cover the same amount as the scheme did in 2008. Minister, will you increase the caps on the bank deposit guarantee to make up for inflation since 2008?

Senator GALLAGHER: In line with the answer I gave last week, of course the government would respond in relation to concerns that were raised about the operation of our banking system and the impact it was having here. We are not seeing that. I think Australians should be reassured that the Australian banking system is resilient and that all of our banks, as I said, are well capitalised and have strong liquidity coverage. The Treasury and regulators are closely monitoring the situation about potential impacts for Australia—and when I say that, I mean very closely monitoring. I can understand that people watching what has happened with Silicon Valley Bank and Credit Suisse would have raised concerns. I can understand that. The response is that since the GFC and since the banking royal commission there are measures in place to ensure the strong performance of our banking system, and we don’t have any concerns about it.

The PRESIDENT: Senator Roberts, a second supplementary?

Senator ROBERTS: Reviewing the minister’s answers, I have five questions on the guarantee so far. Firstly, the guarantee has not been adjusted for inflation, and so it offers 34 per cent less protection than when it was legislated. Secondly, the guarantee is not funded. There is no money available to implement it. Thirdly, the scheme only covers 7c in the dollar of deposits. Fourthly, the minister has refused to commit to activating the scheme if it was needed. Minister, can you explain why constituents should not conclude, as many have, that the bank deposit guarantee is a fraud and a lie?

Senator GALLAGHER: I don’t agree with that representation by Senator Roberts at all. I have answered the question in a general sense by saying that, if there were concerns as we saw in the GFC, of course the government, and I presume the parliament, would act. The point I’m trying to make is that at this point we don’t have concerns. We do not share the concerns. In fact, we’ve been given very strong reassurance by the regulators, by the banks themselves and by the systems that have been put in place by this place and the other place to ensure that we have a strong, well regulated, well capitalised banking system to precisely insulate from some of the financial instability that we’re seeing elsewhere. Yes, of course, the government would respond if we had to. At this point in time we are assured that that’s not the case.

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$4.7 billion bank heist goes unpunished

If you steal $100 you go to jail. If a bank steals $4.7 billion they just get a strongly worded letter.

The Government is trying to make sure bankers don’t face any personal responsibility or jail time when they commit a crime.

Transcript

As a servant to the many amazing people who make up our one Queensland community, I note that if an everyday Australian steals a few thousand dollars they go to jail, yet if a banker steals $4.7 billion they do not go to jail.

As at 31 December 2022, six of Australia’s largest banking and financial services institutions have paid or offered a total of $4.7 billion in compensation to customers who suffered loss or detriment because of fees for no service or non-compliant advice. ‘Banks gone bad’, greedily charging fees for no service and providing financial advice that failed to meet the standards for financial advice, ripped $4.7 billion off everyday Australians. And they got away with it. Let me name and shame them: National Australia Bank, AMP, ANZ, Westpac, Commonwealth Bank and Macquarie Bank. Australia has a Banking Executive Accountability
Regime, B-E-A-R, that’s supposed to hold bank executives to account. Clearly, BEAR does not work, because no executive has been fined, let alone jailed, for this corporate fraud.

Is corporate fraud now okay with Labor, with the Liberal-Nationals and with the teals? Apparently. Now Stephen Jones, the minister representing the banks, is planning to introduce legislation to take the penalties out of the BEAR scheme to expedite the banks ripping off more Australians in the future.

One Nation has a simple message for banking executives: don’t even think about it! Unless we keep and use penalty based regulation, nothing will stop these banks doing the same again. Free market competition, though, will bring the banks to heel.

A proper Australia Post bank will provide genuine competition for our banking cartel, using ethical, community based banking at thousands of new bank branches. It’s been proven with the original Commonwealth Bank a hundred years ago.

One Nation has a long history of standing up for everyday Australians. Clearly, the Labor Party does not.

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SVB Collapse, Credit Suisse, Australian Bank bail-IN?

After the SVB and Credit Suisse crisis a bail-in, which is where the banks take their depositors’ money to save themselves in a collapse, is still possible in Australia.

I call on the government to categorically rule out a bail-in and properly fund the bank guarantee scheme.

Transcript

As a servant to the many amazing people who make up our one Queensland community I note that in the last few weeks we have seen with the failure of Silvergate Bank and Silicon Valley Bank what is in aggregate the largest banking collapse in US history. Australia is not America and it is not Europe. If everyone keeps their heads, we will be fine. Our big four banks are bastards, yet they are well capitalised. Nonetheless, it would be wrong to not take this opportunity to revisit how to save a failing bank.  

I remind you that there are two choices: bailing out, with a large injection of taxpayer money, increasing debt for everyone, or bailing in, which is where the banks take their depositors’ money to save themselves. A bail-in still requires the bank to close for days or weeks, preventing customers accessing any money left in their accounts. Business are left without money to pay staff or suppliers. The effect on the economy is catastrophic.

Everyday Australians trying to pay for their shopping would find their account empty or their card suspended. Travellers may be stranded. 

One Nation introduced a bill to prevent bank bail-ins and to protect the people. Labor and the Liberal-Nationals defeated our bill in 2020. One Nation did lead a successful campaign against the cash ban bill that the Liberals, Nationals and Labor proposed in 2021, so Australians can still use cash in an emergency. This is relevant again because President Biden initially chose to seize half of Silicon Valley Bank depositors’ funds and freeze the rest for up to three years. That’s a bail-in. What followed was a run on all banks, forcing the president to backflip and instead initiate a bailout. 

Australia has a bank guarantee scheme, a bailout, but it’s a con trick. There’s no funding and no requirement to use it. It covers only $20 billion per bank—$80 billion total. This is supposed to protect $1 trillion in depositors’ funds. It’s eight per cent. I call on the government to categorically rule out a bail-in and properly fund the bank guarantee scheme. 

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Greedy Banks abandon the bush

The greedy major banks have closed more than 70 branches in rural, regional and remote Australia in just 42 days.

The banks are looked after by the Australian government extremely well, so they have a responsibility to serve Australians.

It’s another reason why we need a people’s postal bank.

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Liberal/Labor running a protection racket for the banks

Another party is in Government but it’s still the same old protection racket being run for the banks.

Whether it’s bail-in, regional branch closures or restricting cash, Anthony Albanese’s Labor Government is continuing the Liberal party’s tradition of running protection for the big banks.

Transcript

It seems Stephen Jones is to the Labor Party as Josh Frydenberg was to the Liberals: the bank’s man in the government.

Whether it’s defending the right of the banks to bail in the cash in your account; whether it’s turning a blind eye to banks closing their rural bank branches, which has increased this year under Minister Jones; whether it’s allowing the King’s currency to be shunned so the banks can force everyone onto electronic banking, with every transaction helping bank profits and every sale providing a data- and profit-rich environment for the banks; or whether, as it is today, it’s letting banking executives off the hook for egregious behaviour, that should be criminal.

These hideous, inhuman banking crimes were brought to light during the Senate’s Select Committee on Lending to Primary Production Customers in 2017, an inquiry that Senator Pauline Hanson got and that I chaired.

Four years later, not one of those victims has been compensated nor a banker prosecuted. Minister Chalmers is protecting the banks over the best interests of the people.

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