AUSTRALIA’S big four banks must have been dizzy from counting their profits when they collectively called for a royal commission to “restore public faith in the financial system”. How comical that now sounds.
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It was late last year that the chairpersons and chief executives of ANZ, Commonwealth, NAB and Westpac wrote to treasurer Scott Morrison to backflip on their long-held resistance to such an inquiry to argue that it was, at that point, in the national interest. They got that part right.
Mr Morrison himself had dismissed the need for a royal commission, labelling calls for one by Labor leader Bill Shorten “a populist whinge” that was threatening to undermine “a key pillar” of the Australian economy.
Funny that soon after the banks had effectively given their permission, hey presto – a royal commission was announced.
If that all sounds like it had a bit of a funny smell about it, then what’s been revealed since is positively putrid as we learned this week that the big four and AMP – Australia’s largest wealth manager – have all played a calculated little game of charging people for non-existent services.
Of the banks, the Commonwealth was dubbed the “gold medallist” of what you might call “the Money Grubby Games”, finishing first in the fees for absolutely no service at all event. A day after the bank accepted it was the stand-out performer for these rip offs, it revealed some of its planners had actually continued to charge some people for no service long after they were actually dead.
AMP deserves at least an honourable mention, as not only was it a worthy competitor in the fees for absolutely no service race, it lied about it to the Australian Securities and Investments Commission … at least 20 times.
Even by their own admissions, none of this deceitful behaviour came about by accident or incompetence. It was orchestrated. If you were a morally corrupt finance worker, you might even call it a business plan.
In light of such appalling revelations, Mr Morrison has now warned executives “could” face jail for their actions.
"This type of behaviour can attract penalties which include jail time. That's how serious these things are,” he said.
Mr Morrison should call the behaviour for what it is. It is fraud. It is a criminal act and it should be treated and investigated and punished as such.
