Commonwealth will not pay Royal Commission compensation

The Federal Treasurer, Scott Morrison has strongly signalled the Commonwealth will have no part in paying compensation resulting from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Speaking on radio, Morrison ruled out any taxpayer money being directed towards compensating those identified as having been wronged by the major banks or other financial institutions.

“The taxpayer will not be forking out any payments because of any wrongdoing by the banks,” he said.

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Referencing the Royal Commission, Morrison said it would hold its inquiry and make its recommendations.

“But one thing that the taxpayer shouldn't have to pony up for is to pay any sort of redress or compensation for things that are done in the banking and financial system,” the Treasurer said. “That would be a matter that I am sure the Commission would turn its attention to if they wish to with those institutions themselves.”

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Is this seriously something to consider. If the RC determines the banks have done something wrong than the banks have to be liable for compensation. The highly paid directors of these banks are lucky bank customers can't come after them and sue, as would be the case for a privately owned company. When are these bank executives going to take responsibility for their actions rather than passing the buck.

My thoughts exactly. How senior bank executives have been sacked over their nefarious dealings and self interest.

The Treasurer is getting ahead of himself here. Like the PM who boldly told the Parliament on the dual citizen sage 'The High Court will so hold' only to be beholden to the contrary ruling, he might have to snack on this assertion. Affected customers may and perhaps will seek compensation for regulatory malfeasance by APRA and ASIC.
Suing the banks is not the same as suing the culpable managers and directors, as they would hide under the corporate cloak, with the shareholders already suffering a sharp value in their asset valuation being made to pay: a double whammy.
The customer pays. Always.

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