FROM THE DESK OF Roland Rocchiccioli – February 14, 2019

Why does it appear that politicians, on their election to office, imagine they are, by osmosis and incumbency, endowed with the wisdom of Solomon?

POSSESSED of a mere talent to amuse, I assumed, wrongly as it transpires, that the breed of persons wandering those august and lofty corridors of power in commerce and politics, were gifted with a special intellect; a comprehension and a wisdom far superior to anything I could intellectually conceive, ever. These days, I am less certain and more disillusioned. Ask a politician what they had for breakfast, and they will tell you about the ham sandwich they’re having for their lunch.

For many, the intricacies of complicated financial systems require a blind leap of faith; however, if you listen to the Federal Treasurer, Josh Frydenberg, he would fallaciously have you believe that Mr. Shorten and the Labor Party is directly responsible for the greed and illegal behaviour which has polluted our banks and affiliated financial sectors. More correctly, it is the direct consequence of monetary deregulation, set in place in the 80s and 90s by the former Treasurer and Prime Minster, Paul Keating, and the Liberal Treasurer, Peter Costello. The decision to deregulate banks, which was deemed responsible, was tantamount to handing a sugar-starved child the keys to an endless sweet shop. No-one suspected banks and financial institutions would, in a decade or so, become so corrupt; so obsessed, they would stop at nothing in the pursuit of their annual profit; and with such flagrant contempt for both the law and their customers. They went from being service utilities to rapacious, contaminated institutions.

The daily proceedings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry were riveting. Headed by the ferociously intelligent, former High Court Justice, Kenneth Hayne, and assisted by Senior Counsels, Rowena Orr, and Michael Hodge (the baby-faced assassin), their forensic questioning of the sometimes dubious and maladroit cavalcade, who were paraded on summons, helped to restore the public’s trust in the might-of-right. Lead barrister, Rowena Orr, has been widely praised for her formidable pursuit of some of banking’s most powerful figures. In a testy encounter she confronted Commonwealth Bank of Australia chairman, Catherine Livingstone, with challenging questions. Ms. Livingstone’s demeanour was more akin to a 19th century, priggish headmistress, complete with pearls. AMP chairman, Catherine Brenner, fell victim to Ms Orr’s adverse opinion and, consequently, surrendered her lucrative sinecure.

Mr. Hodge’s vexation was palpable while cross-examining Marianne Perkovic, head of CBA’s private banking. Her persistent obfuscation and dissembling prompted Commissioner Hayne to direct her, several times, to answer the question.

The National Bank’s Dr. Ken Henry embarrassed himself while trying to deflect Ms. Orr’s steely determination – repeatedly scoffing at statements, and audibly sighing before answering most of her questions. In a tetchy exchange, Ms Orr asked him whether NAB’s board should have reacted earlier after customers were charged fees for no service. The exchange was branded a “shocking moment of disrespect” from Dr. Henry. His apparent dismissal of, and contempt for, the whole process was unfortunate, and inappropriate for a former incumbent of several significant public posts. He served the Commonwealth with distinction.

In his report, which does not recommend any criminal proceedings, Commission Hayne censured NAB, noting it “stands apart” from the other three major banks. Pointing unambiguously at its CEO and chair, he wrote: “Having heard from both the CEO, Mr Thorburn, and the chair, Dr Henry, I am not as confident as I would wish to be that the lessons of the past have been learned.” “More particularly, I was not persuaded that NAB is willing to accept the necessary responsibility for deciding, for itself, what is the right thing to do, and then having its staff act accordingly.

Of the more than $100-million to be repaid by NAB and NULIS he recorded: “I thought it telling that Mr Thorburn treated all issues of fees for no service as nothing more than carelessness combined with system. “Overall, my fear — that there may be a wide gap between the public face NAB seeks to show and what it does in practice — remains.”

At handing-over of the report press call, Commissioner Hayne sat glacially silent, and unsmiling. His refusal to a handshake request spoke volumes.

Anna Bligh, CEO Australian Banking Association, and Mr. Frydenberg, have made their fittingly contrite public mea culpa. Both were opposed but now promise all 76 recommendations will be implemented. We shall see!

Roland can be contacted at [email protected] heard every Monday morning – 10.30am – on radio 3BA.