Media releases

“It is ironic that while Federal Parliament debates amendments to the Financial Accountability Laws this week, another banking crisis is affecting markets around the world.”

“Like banking problems of the past, the latest crisis is caused by greedy executive bankers, poor regulation, and inadequate supervision.”

“While our banks are seen as ‘too big to fail,’ make no mistake, this banking crisis affects us all as we see super balances drop and our cost of living increasing.”

“This is the wrong time to let bankers off the hook as assistant Treasurer Stephen Jones has done by reducing the financial penalties that can be applied when banks fail their accountability provisions.”

“Instead of the original fines which were larger than $1 million, under the new amendments, bankers face the loss of 40% of bonuses for up to four years.”

“Watering down fines bankers face is an inadequate penalty and unlikely to modify poor behaviour and decision-making.”

“The banks claim large fines would prevent them from hiring the best staff and reduce risk taking.”

“Unless there are stronger deterrents senior executive bankers will continue to engage in misconduct until it becomes so egregious that it cannot be ignored.”

“The only country that set a major deterrent following the GFC was Iceland, where some executives were jailed. Since then Iceland’s economy has rebounded, and its banking sector has been restructured and is now more stable and better regulated.”

“Australia needs a tough regulatory response to deter banks from the bad behaviour of the past.”

“These amendments fail to set the tough kind of regulatory regime recommended by the Hayne Royal Commission into banking.

Media contact: John Hill- 0412 197 079