big banks

Banks’ Defence Could Use Shareholder Funds

For years the banks and financial institutions of Australia rorted the system.

The blatantly ripped off their customers, with little regard to their wellbeing.

Even the dead weren’t safe from the ill practices of the banks.

For years the banks acted as if they were invincible, untouchable.

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Banks must face consequences

They now claim they know they’re not above the law, but prior to the Hayne Royal Commission, you’d be led to believe that that’s exactly what they thought.

Those that have participated in the malpractice of their customers, banks and employees, should ‘face the consequences’. However, representatives for the sector haven’t ruled using shareholder funds to support their defences.

Banks not above the law

Monday, 4.10pm is when the public will become privy to the final royal commission report.

Australian Banking Association head Anna Bligh said that the industry and the system are aware that they are not above the law. But each individual is eligible to a defence, AAP reports.

When asked if the bankers would pay for their own legal defence, she told ABC Radio’s AM:

I would assume that every institution, whether that’s a bank or an insurance company or anyone else, will be looking to make sure that people get the defence that they’re entitled to. That’s the nature of our criminal justice system in this country’.

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Alana Sumic

Alana Sumic

Alana Sumic is an editor and writer for The Australian Tribune. She has a Bachelor of Arts from La Trobe University and a Masters in Publishing and Editing from Monash University.

She specialises in national and international politics and current affairs. She’s passionate about delivering the unfiltered stories that matter to you, on all topics.

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  1. In late 2014, the G20 adopted new banking rules.

    There was little fanfare… even though the new rules compromised every single bank account you now have money in.

    What changed? Now, whenever you deposit money in a bank, you are no longer considered a depositor. Rather, you are considered an unsecured creditor of the bank.

    So if a bank runs into financial trouble, it now has the legal basis to take your money — and there’s nothing you can do about it because you’re a “creditor.” You’ll simply be added to a long list of creditors waiting to get their money back.