Royal Commission - Financial Services

[SwampCreature]

In hindsight, I wouldn't have understood any of that even if it was legible.

 

[Number37]

I would like unions and corporations governed by the same act and the same principles. I have argued that consistently.

You can't be serious.

Unions exist primarily to advocate for workers.
Corporations on the other hand...

 

[Number37]

one of australia's top 10 has parked $1B in Asia(which I understand has not been declared/ taxed) and the big 4 is paying over bank rate (paying more than if they borrowed from a reserve or inter-bank) to support their $20B cash requirements.

In return for this the Big 4 is paying lower rates for the same individual in australia.

The dare say the new person in charge will shut this down due to the legal issues and in turn the bank will not meet its cash requirements and thus close their doors........unless they can find another solution.

1. A bank cannot borrow to meet their cash requirements.
2. The entire purpose of the cash requirements is so that should the sh!t hit the fan they have enough money to, at the very least, give depositors their savings back.
3. The Big4 CANNOT borrow at inter-bank rates because they are NOT a bank.
4. The RB only lends to qualifying financial institutions. The Big4 are not, and never will be, financial institutions, they are service companies.

 

[Power Raid]

1. A bank cannot borrow to meet their cash requirements.
2. The entire purpose of the cash requirements is so that should the sh!t hit the fan they have enough money to, at the very least, give depositors their savings back.
3. The Big4 CANNOT borrow at inter-bank rates because they are NOT a bank.
4. The RB only lends to qualifying financial institutions. The Big4 are not, and never will be, financial institutions, they are service companies.

the $20B is the cash requirement in deposits to cover the costs of running a bank.

 

[Power Raid]

You can't be serious.

Unions exist primarily to advocate for workers.
Corporations on the other hand...

great. given that unions are so wonderful, they will have no problems complying with the corporations act.

society and workers will benefit once we impose standards and recourse in our unions.

 

[Power Raid]

1. A bank cannot borrow to meet their cash requirements.
2. The entire purpose of the cash requirements is so that should the sh!t hit the fan they have enough money to, at the very least, give depositors their savings back.
3. The Big4 CANNOT borrow at inter-bank rates because they are NOT a bank.
4. The RB only lends to qualifying financial institutions. The Big4 are not, and never will be, financial institutions, they are service companies.

and I am talking about one of the big 4 banks not a big 4 accounting firm

 

[Number37]

great. given that unions are so wonderful, they will have no problems complying with the corporations act.

society and workers will benefit once we impose standards and recourse in our unions.

All directors are bound the Corporations Act.
The Criminal Code imposes standards on everyone including unions.

 

[Number37]

and I am talking about one of the big 4 banks not a big 4 accounting firm

Makes no difference, a bank can't borrow to meet its cash requirements. That would be stupid.
Inter-bank loans are settled at the end of the day via Deferred Net Settlement using Exchange Settlement Accounts.

 

[Power Raid]

Makes no difference, a bank can't borrow to meet its cash requirements. That would be stupid.
Inter-bank loans are settled at the end of the day via Deferred Net Settlement using Exchange Settlement Accounts.

FFS

forget about financial ratios......think about the scale required to cover costs. ~$20B in deposits is the amount generally accepted to have the scale to operate a retail bank.

 

[Power Raid]

All directors are bound the Corporations Act.
The Criminal Code imposes standards on everyone including unions.

FFS

Have a think about what you have just said and what structure a union is. Clue: what is the corporate structure of the MUA and CFMEU? A simple change of the rules and we unions can enjoy the same corporate governance standards we would all expect.

and no the criminal code is not the same until we get rid of fairwork and replace it with the ABCC. Fairwork enables intimidation tactics to work as normally charges can be laid without the co-operation of a victim. However a union can bribe, intimidate or threaten families to ensure they do not co-operate and thus charges can not proceed. Further, charges can not be laid under the fairwork act where a settlement is made........how can one avoid criminal sanction through a payment in any other legal code?

 

[Showbags]

http://www.smh.com.au/federal-polit...b-amid-banking-firestorm-20160415-go7c4y.html

You scratch our back, we'll scratch yours?

 

[Power Raid]

a side issue to any investigation but insurance is simply a put option. I doubt 1% of the population would ever enter into a put option in their life other than insurance and even then they probably wouldn't appreciate they have actually entered into a put option.

this fact is at the heart of the issue. we have people entering into contracts they simply don't understand. no wonder there is a power imbalance.

the solution is:
1) get rid of the concept of s708 investors and retail. everyone should be a s708
2) this would get rid of prospectuses, meaning people would be required to understand their own dealings rather than receive a 100 page document that makes no sense
3) teach kids finance and contracts at school. isn't it ludicrous that the basics of contract law isn't taught at school? isn't it ludicrous that frameworks like ombudsmen and conflict resolution aren't taught?


instead we find jealous, envy and emotional journalism like raising the wage of an executive when the issue is whether life insurance is paid out or otherwise. wouldn't good journalism highlighted why the insurance company was paid out and why the insurance company come to the wrong conclusion? wouldn't good journalism have also explained the avenues available such as the courts, an ombudsmen or other?

logic will always beat emotion long term

 

[Gough]

Calling all unions murderous, criminal organisations could be construed as being a tad emotional I'd suggest.

 

[Number37]

FFS

Have a think about what you have just said and what structure a union is. Clue: what is the corporate structure of the MUA and CFMEU? A simple change of the rules and we unions can enjoy the same corporate governance standards we would all expect.

and no the criminal code is not the same until we get rid of fairwork and replace it with the ABCC. Fairwork enables intimidation tactics to work as normally charges can be laid without the co-operation of a victim. However a union can bribe, intimidate or threaten families to ensure they do not co-operate and thus charges can not proceed. Further, charges can not be laid under the fairwork act where a settlement is made........how can one avoid criminal sanction through a payment in any other legal code?

So we need a special rule/court just for unions?
How do we catch business people that pay bribes... AWB ring a bell?

 

[Number37]

a side issue to any investigation but insurance is simply a put option. I doubt 1% of the population would ever enter into a put option in their life other than insurance and even then they probably wouldn't appreciate they have actually entered into a put option.

this fact is at the heart of the issue. we have people entering into contracts they simply don't understand. no wonder there is a power imbalance.

the solution is:
1) get rid of the concept of s708 investors and retail. everyone should be a s708
2) this would get rid of prospectuses, meaning people would be required to understand their own dealings rather than receive a 100 page document that makes no sense
3) teach kids finance and contracts at school. isn't it ludicrous that the basics of contract law isn't taught at school? isn't it ludicrous that frameworks like ombudsmen and conflict resolution aren't taught?


instead we find jealous, envy and emotional journalism like raising the wage of an executive when the issue is whether life insurance is paid out or otherwise. wouldn't good journalism highlighted why the insurance company was paid out and why the insurance company come to the wrong conclusion? wouldn't good journalism have also explained the avenues available such as the courts, an ombudsmen or other?

logic will always beat emotion long term

Even for you that is one crazy idea.

You don't fix stupid by asking the wrong people to get an education.

I would suggest that there are many many many finance gurus that don't know sh!t about finance, they are merely trained sales men and women.
That is the problem.

 

[Power Raid]

So we need a special rule/court just for unions?
How do we catch business people that pay bribes... AWB ring a bell?

no, go back and read the thread.........we need the same rules to apply to unions as are applied to corporations.

and no, I didn't state corporations haven't been guilty of bribes.

what I have stated is fairwork not only legalises bribes it also means criminal charges can't be pursued where a settlement (bribe) is paid. This is contrary to any other legal framework designed by Labor for their scummy CFMEU an d MUA mates.

are you FP?

 

[Ratts of Tobruk]

no, go back and read the thread.........

No one wants to read a thread when you fill it with your bumbling claptrap. Don't pretend you don't know this.

 

[Power Raid]

Even for you that is one crazy idea.

You don't fix stupid by asking the wrong people to get an education.

I would suggest that there are many many many finance gurus that don't know sh!t about finance, they are merely trained sales men and women.
That is the problem.

hmmmm?

so remaining ignorant is what you advocate?

I see Ratts likes the idea of keeping people ignorant to. Perhaps he has something to gain from an electorate and workforce being powerless and uninformed.

 

[Number37]

......we need the same rules to apply to unions as are applied to corporations.

RC into unions.
RC into banking.

You oppose one and join the cheer squad for the other.
That doesn't sound like you wanting the same rules!

are you FP?

Are you?

what I have stated is fairwork not only legalises bribes it also means criminal charges can't be pursued where a settlement (bribe) is paid. This is contrary to any other legal framework designed by Labor for their scummy CFMEU an d MUA mates.

Is it a settlement or a bribe?
You sound confused.

 

[Ratts of Tobruk]

I see Ratts likes the idea of keeping people ignorant to. Perhaps he has something to gain from an electorate and workforce being powerless and uninformed.

No, I think you have something to gain by joining the workforce.

 

[Power Raid]

RC into unions.
RC into banking.

You oppose one and join the cheer squad for the other.
That doesn't sound like you wanting the same rules!



Are you?



Is it a settlement or a bribe?
You sound confused.

again you are confused. I am not against a RC into banking. where did I ever say that?

I have explained how fairwork enables stand over tactics and bribes. using one or both of these prevents criminal charges being pursued which is contrary to any other legal framework. Can you think of a reason why Labor would design legislation that enables stand over tactics or bribes for unions and only unions?

 

[GreyCrow]

So we need a special rule/court just for unions?
How do we catch business people that pay bribes... AWB ring a bell?

I don't recall

 

[Ratts of Tobruk]

I don't recall

I was about to post the link to it when I realised you were quoting that ol' Liberal leader, Alexander Downer. Very droll.

 

[telsor]

I look forward to SR&P viewing this by the same standards they viewed the RC into unions.

a) Consistently decrying it as a political witch hunt.
b) Any number of senior people in the same organisation all involved in corruption? Rapidly excused as nothing to do with the system, it's just a few individuals.
c) Any reflection on politicans is purely circumstantial.
d) Recommendation to fix it are to be resisted by all means necessary.



For the record, as I said with the RC into unions, I don't think it goes far enough. There should be a standing, independent commission with RC powers into corruption...Political, union, business and public services (including police). Commissioners appointed by a range of groups and resourced to run multiple investigations simultaneously.

 

[CM86]

I look forward to SR&P viewing this by the same standards they viewed the RC into unions.

a) Consistently decrying it as a political witch hunt.
b) Any number of senior people in the same organisation all involved in corruption? Rapidly excused as nothing to do with the system, it's just a few individuals.
c) Any reflection on politicans is purely circumstantial.
d) Recommendation to fix it are to be resisted by all means necessary.



For the record, as I said with the RC into unions, I don't think it goes far enough. There should be a standing, independent commission with RC powers into corruption...Political, union, business and public services (including police). Commissioners appointed by a range of groups and resourced to run multiple investigations simultaneously.

Well...
You're obviously unbiased and altruistic!

No hyperbole in your post at all!