An interim report from the banking royal commission has found misconduct by banks and financial institutions has been driven by greed.
After months of shocking testimony, including that dead people were charged advice fees by banks, Commissioner Kenneth Hayne has delivered his 1,000-page interim report to the Governor-General. Treasurer Josh Frydenberg says it is a frank and scathing assessment of Australian financial institutions.
The Commissioner stopped short of making recommendations. But he did take aim at the regulators - the Australian Securities and Investments Commission and Australian Prudential Regulation Authority - for their seeming inability to punish bad behaviour.
Acting opposition leader Tanya Plibersek has responded to the report, saying an elected Labor government will establish a task force to reform the financial sector.
The recommendations appear unlikely to include more legislation.
The CEO of the Australian Banking Association, Anna Bligh, says the banks will do better.
With a final report due in five months the Treasurer says if an extension is requested it will be granted. Over 9,000 submissions were received by the Royal Commission. But so far less than 30 customers have had the chance to tell their story. Tanya Hargraves feels she has not been heard and says the Commission should be expanded. She says a disastrous re-financing plan saw her lose her farm, house and business.
The next round of hearings will be in November.
