Let’s play a guessing game.
This country is a bit of a paradise for white-collar crime.
What country is this man talking about? Nigeria? Belize? Turkmenistan?
Nope. Australia.
And who said it? Someone from the Greens? Someone from the Dandenong Socialist Alternative (nee Alliance)? Someone from Uniting Care Australia?
Nope. Greg Medcraft – Chairman of ASIC.
That’s right. The head of the body charged with overseeing the financial sector – the person in charge of setting and enforcing the rules that govern the entire financial system reckons Australia is a paradise for white collar crime.
“The penalties, particularly civil penalties, in Australia for white-collar offences are basically not strong enough, not tough enough. All you're doing is giving them a slap on the wrist [and] that is not deterring people.”
Does that worry anyone else? Seems like a huge problem to me – if Australia’s head regulator is basically throwing up his hands and saying we can’t do diddly-squat to prevent white-collar crime.
It certainly rang some alarm bells in Canberra. And the government took decisive action. They got Finance Minister Mathias Cormann to lean on Medcraft and get him to pull his head in.
The government can’t afford to have loose cannons like that pinko Medcraft going “off message” like that.
Medcraft retracted his statement.
Phew. Crisis averted hey?
Let’s be clear. Financial regulation in Australia is a shambles. And has been for years. I’m amazed anyone has any faith in it all.
Scandal after scandal emerges. Not on the fringes of the financial sector, but at it’s heart. CBA and ANZ have been caught with their pants down in recent times, but none of the majors have much to be proud about.
Here’s a few examples:
But they continue to run with the line that it’s just a few ‘rouge operators’ tarnishing their otherwise immaculate ethics.
Garbage. There’s a culture and a system that actively cultivates these ‘bad apples’. That deliberately grooms them and promotes them into senior management and gives them offices with a toilet.
Take the recent CBA financial planning scandal. Hundreds of people had their financial futures ruined by shonky advice that pushed them (often against their knowledge) into financial products that were woefully unsuited to their circumstances.
And how many individuals have done jail time? How many individuals have even copped a fine?
None.
Many have even been giving promotions and allowed to advance through the banking career ranks.
Only the ‘institution’ of CBA had any fallout to deal with. $52 million for its 1100 victims.
And that’s not just for ripping people off, but for spending 4 years trying to cover it up.
But this is an organisation that paid Ralph Norris – the CEO through these scandalous years – $16 million a year.
$52 million is nothing. Barely a slap on the wrist. Just a small cost of doing business. It’s spread across the organisation (i.e – the shareholders are left picking up the bill) and will probably be written off in tax anyway.
There’s a bit or reputational damage, but what are you going to do? Take your money to ANZ and get wrapped up in the next Timbercorp scandal?
The whole system is corrupt.
And the bankers laugh and laugh.
There was a small triumph of common sense this week when some rouge senators got together to block the government’s attempt to unwind the FoFA legislation – which shamelessly sought to overturn consumer protections in favour of banking interests.
Seriously unbelievable.
The FoFA legislation was all about shining a light on the ‘vertical integration’ of the wealth industry.
80% of financial planners are owned by the big four banks. Yep, 4 in 5.
And who’s products do you think they’re flogging?
Now it’s pretty common for manufacturers to own or help manage the distribution networks.
For example, if I walk into Super City Toyota, I expect the salesman to sell me a Toyota. I don’t expect him to wax lyrical about the benefits of other models. “Have you considered a Mazda, sir? They make great cars.”
But then it’s very clear I’m shopping in Toyota’s distribution network. There isn’t a huge sign that says, “Independent Automotive Advice”. They’re not pretending to sell me personalised automotive solutions to suit my own unique driving circumstances. They’re in the business of selling Toyotas.
But this is exactly the scam that’s running in financial planning. They’re flogging a particular set of financial products, under the guise of independent advice, with no disclosure of the kick-backs and commissions they receive.
FoFA tried to shine a light on these arrangements, as well as some other radical measures like getting planners to disclose their fees (I know, crazy right?)
But the government had plans to undo it all.
And why would the Coalition attempt such a shameless shafting of the public interest?
Because they’re getting paid to do it.
The banking and financial industry is one of the biggest donors to the major political parties. In fact it’s the single biggest industry.
In 2011-12, they donated $1.7 million to the major parties, not counting anything that might have been directed through individuals or lobby groups. The next biggest industry was energy, all the way back at $0.66 million.
Now you don’t make that kind of investment without expecting something in return.
And before any Labor hacks start getting all holier-than-thou on me, the financial industry usually likes an each way bet. Labor are hooked on exactly the same sugar.
And this is why financial regulation in Australia is such a shambles, why ASIC is such a toothless tiger, and our head regular thinks Australia is a paradise for white collar crime.
Our politicians have sold us out.
They’ve let the financial industry write it’s own rule-book, prostituting the public interest for a couple of million dollars.
And we’re all the poorer for it.
I’ll keep my financial future in my own hands thank you very much.
HBSPL says
Old news. Nil action as its not in the medias interest either. Understand also the banks create money from nothing and then lend it to it you as though it was something. i.e. They don’t lend you $300k of existing cash assets. They invent it and make you responsible for it with interest. Inflationary element that is not factored into the 2-3% inflation target federally. Don’t believe it? Lending balances are way beyond cash reserves. Where is the money from? PUP do something – No. independents do something – no. Recent labour and liberal changes to senate mean its even harder to get into Senate now. TOP DOWN CORRUPTION
JUST SAYING says
Thank christ someone else is awake to what is going on…lot of stupid people running around actually calling it money… what a joke. Time we had our own National Bank and printed our own money again. Just like we used to. While were at it we can get rid of this puppet government for the multinationals and return our de jure gov’t of by and for the people. This de facto gov’t can pick up the tab for all the stolen property they flogged (stole from the people of the commonwealth) under the guise of privatisation!
Hey didn’t they jail Bondy for stripping the assets of one corporation to benefit his own? Sound familiar anyone??
Jack says
And that’s why we pay these wonderful imported executives $13.9million dollars for a years work.
That’s why I left Banking at a senior level 15 years ago(I realised I wouldn’t be able to lay straight in bed and sleep at night) and I now work as a finance broker trying to SCREW the Banks in favour of the client.
I actually earn less money than I did then but now I love my job and have no problem sleeping at night.
Although I am a shareholder I prefer not to refer any business to any of the Majors.
Jack says
Just to clarify my previous post:
I’m only a shareholder because St George Bank of which I was a foundation shareholder when it was a building society was graped by a major bank.
Also
I wasn’t implying that we were paying these imported executives HUGE money to be prostitutes, although I could understand how somebody might make that conclusion.
I’m sure they won’t be making that sort of money when they are walking the streets looking for new similar work.
viccherikoff says
IT is not just in the banking sector that they guild their own lilies and screw the public. How many politicians build massive careers after politics using their political contacts and influence to score consultancies, directorships, board positions you name it after their public office.
Circa 2003, then Premier of NSW, Bob Carr screwed a bunch of people with Supreme Court actions in Industrial Claims matters when he wiped away the court platform. I was one of them and instead of having a justifiable case to win, I was left with cost claims against me!!! Carr then later waltzed off to a million dollar palm greaser from the MacQuarie Bank and ever-more wealth and some O/S travel as our national representative as Minister for Foreign Affairs (probably giving the title a whole new meaning).
How do these people sleep straight in bed?
Then there are the loggers who poison native animals in forests before wiping away whole ecosystems that potentially, all of humanity may depend on for future breathable air, medicines and food species.
Or idiot Prime Ministers who stick their heads in the sand over global warming and winge to International Leaders that they can’t get a $7 doctor’s visit fee levied against the poor. Bummer.
We really need a new system of government and industry, one that’s based on a paradigm of sustainability and long term survival for the community, not just for top management of corporations or government.
JUST SAYING says
I’d be careful of the word sustainable and sustainability… more UN gibberish, which is code for profitable for them , not you and I . Read up on agenda 21… you’ll learn all the catch words there!
Doris says
Wow! Coming from someone who has made his money from the benevolent world of wealth creation seminars! Pot kettle?
Jenny Loftes says
Absolutely right Jon!
As a Business Advisor to Government, Corporations and SME’s, I see this daily.
Most people would be horrified to learn of the “brown-paper-bag” exchanges that occur to keep the wheels turning smoothly for “preferred” suppliers.
The “average” Australian only deals with banks when they purchase a house,believing that the bank will look after them, and that they are still a “service” industry, as in the old days when you knew the bank manager personally, and even invited him to you children’s weddings!
No employee, in any industry, deserves the $13-$20 million dollar salaries (plus benefits & shares) that are paid to Banking CEOs.
Any moves to shine a light on the banking industry and it’s activities, should be welcomed and applauded.
The old adage: “The Golden Rule” is what this is about.”He who has the gold, makes the rules”
Sadly,they have forgotten the other side to this equation: Along with power, comes responsibility.
Continue to be a thorn and a disrupter in their side, Jon!
al says
… Jenny… landed on the wrong chair page – fell in Melanie’s lounge room !! somehow .. but o.k. .. ‘sugar’ shoot my landing boots it was almost a no parachute job!!? ! …late to note but ..
it seems? – they DO see your view and ‘live’ (your) ‘the nett equation’ as on “their own version of the other side“ and they do accept/take the power that you note and by there/by a or allows that – double headed coin that gives them the platforms to direct all those – “response ability” = to others, make ‘us’ have the “ability to respond” as they see /call it ‘elsewhere’ ie: … ‘we are choosing’ from lower down’ (ie, “it’s not for us”) ‘as we have all responsibility for these others issues’, BALD as brass nuts – “tiered monopoly” owners of the (whole world) it’s the corporate/gov’ts – game board ? – they have the six sided dice – everyone else has five sided dice /rolls every year = + tax (is ‘natural’ as part of the game) “modern “monopoly of lords past? .. is our future” – as was our past then, now our more recent in-corporated(?- bored)- board’s game – a Disney tool that re-inspired (or that we were re-anointed/confirmed again = ‘re-deceived’) as a whole new huge rising wave of mass conscience-ness with all their very subtle re-manipulations.
it’s a spiked drink ‘game’ ‘playing’ on mass conscience-ness, a ‘re-legion’ as if accepting their mass prescription of the original ‘bit – coin’ that could achieve re-seeding the (our new version of a prior) perpetual ‘religious world experiment’ – as it has been noted and is considered
…there is ‘nothing to money’ – except a ‘religious re- assembly’ of previous legions otherwise ‘believers’ in ‘god’ gave previous prescriptions of otherwise worded and stylized Popes before our current ‘Dopes(?) proposing of milk and m/honey assured us if we $$money$$ followed ‘them’ we would prosper and have equal benefits rights as long as we played their rules of the game – remembering their idea for a new game was, their ‘masses pasta’ idea, they were the bank, and did re-invent promote/provide the first of world handed ‘safe money idea’ otherwise how c/would ‘anyone play the game’ to get “what they” properly? truly needed -with no problems?! – with this system when tiering the god of money – gold became everyone’s
archangel and “His-story” ? was slid from an analogy onto a real living reality on “mass scale” as the dice game of ‘the poor’, mass poor became the game practice at home, mono-op-oly – idea – creators (shares in it?) said, its ‘fun to play’ unconditional-ly ( mass) fullyconditioned
generations into an institution of collective amnesia default, the almost complete seduction of entire species hypnotized by an unjust ‘religion’ that has false conquered/divided and tiered all “original human races” that had a first principle to share all necessary resources ensure the very survival of their own tribe/species, now we are so full of our capacity‘to be excessive’ –eg; Mr.Crusoe finally self-exploding is very as if – close to the reality of our new worldly order of $ conquistadors, perhaps saving 1 main difference is it Banks only perhaps ?
Matter of time before the $ pyramid inverts its own prime construction illusionary weight and (?) tragically(?) ‘just flops’ left or right, so to speak?) and (if needed) new paradigms are ‘point-if fi-cate-d’ into a real-ity in a new – ‘re – legion’ of heirs and graces.?
Or is there time to revive all original investigations such as the woman attempted as No.1 truly pissed off as follows …sad but true the eyes that knew the crud was being served saw it as this lone woman said … what the franking crap are you lot up – she smelled rat poo big !!!
i do not think the banks are prepared to stand the gold up – its not for anyone else as a dice game was a far better diversionary tactic and still not many people remember or plain know?
Early history[edit]
The history of Monopoly can be traced back to 1903,[2] when an American woman named Elizabeth (Lizzie) J. Magie Phillips created a game through which she hoped to be able to explain the single tax theory of Henry George (it was intended as an educational tool to
illustrate the negative aspects of concentrating land in private monopolies).
Her game,The Landlord’s Game, was self-published, beginning in 1906.[3] A series of variant board games based on her concept were developed from 1906 through the 1930s that involved the buying and selling of land and the development of that land.
Origin[edit]
By 1933, a board game called Monopoly had been created which formed the basis of the game sold by Parker Brothers, beginning in 1935. Several people, mostly in the Midwestern United States and near the East Coast, contributed to the game’s design and evolution, and this is when the game’s design took on the 4×10 space-to-a-side layout and familiar cards
were produced. The original version of the game in this format was based on Atlantic City, New Jersey. By the 1970s, the idea that the game had been created solely by Charles Darrow had become popular folklore: it was printed in the game’s instructions and even in
the 1974 book The Monopoly Book: Strategy and Tactics of the World’s Most Popular Game by Maxine Brady.
1936–70[edit]
In 1936, Parker Brothers began licensing the game for sale outside of the United States. In 1941, the British Secret Intelligence Service had John Waddington Ltd., the licensed manufacturer of the game in the United Kingdom, create a special edition for World War II prisoners of war held by the Nazis.[4] Hidden inside these games were maps,compasses,
real money, and other objects useful for escaping. They were distributed to prisoners by Secret Service-created fake charity groups.[5]
for myself when paying rent on Bond Street and all other Blue ribbon blocks gave me the craps as my brother always landed them with cash to splash and i paid his bloody rent more often than not he never coped any of mine as I could not buy anything after paying his rent first or second time round – life became a mirror he owns 3-4 houses and I own none – pay rent as if reality was scribed nearly 40 years ago … was it fate or prediction way back then – something is peculiar in life when monopoly ruled my future as if “very oddly pre-revealed and his too”? -.double irony he made his fortunes in Mac Donalds! – I flogged bum building?
essentially it is clear to me that the rolling of dice as our only option to play and stay in the real game of monopoly was long foreseen and that wizened wicca woman good old Lizzie tried to warn us all! … trouble is rising good people and she was the original herald of all the concealed factors creating an educational tool to illustrate the negative aspects of concentrating land in private monopolies … one question could be has every CEO banking desk have her clarity tucked in the bottom draw of their powder puffed mahogany desk?
… the seriously benevolent gift that has come from the game was …the British Secret Intelligence Service had John Waddington Ltd., the licensed manufacturer of the game in the United Kingdom, create a special edition for World War II prisoners of war held by the Nazis.[4] Hidden inside these games were maps,compasses, real money, and other objects useful for escaping. They were distributed to prisoners by Secret Service-created fake charity groups.
…
P Man says
d’fuk did i just read?
Kathy says
It’s called crony capitalism and is alive and well in every single developed country that tut tuts and frowns upon the more open bribes in developing countries.
Not any person responsible for the GFC has ever served any jail time for their part in bring it about. In fact most of the biggest players have earned much larger obscene bonuses than they did before the GFC.
He who has the biggest lobbyist wins.
And when it all turns to crap, which it undoubtedly will, as they have to take more and more risks to get ever bigger returns, the government & central banks (read “taxpayers”) will come to the rescue to bail these banks out.
Col says
I bought some dodgy JB Global product a couple of years ago promoted by you guys – there was no disclosure of the 2.2% commission paid to you! Pot Kettle again?
Melanie Smith says
No surprises anywhere there Jon, but great to see The System being
pointed out for what it truly is : a VERY expensive whore, that is used
in the end to efficiently f**k the tax payers who consistently pick up
the tab!… 😉
As mentioned in previous comments – the Golden Rule
“He who has the gold, makes the rules”. Too true & I doubt this has
changed much in the course of human history, nor is likely to in
future, given the current players on the political & financial
scene.
Is it strange that the fractional reserve banking system
itself can exist as a legitimate business model (virtually a
self-governed ponzi scheme – minimal “real cash” in, maximum “created
cash” out, with interest charged on that thin-air to create more
cash-in) with everyone from our “Big 4” to the much maligned Wall St
players running riot : hands in everyone’s pockets, money changing hands
politically & blessings from govt’s the world over, with NO-ONE
paying the price for their failures & bail-outs? They simply paid
themselves even bigger tax-payer funded bonuses.
Meanwhile the
Bernie Madoff’s of the world are jailed for fraud running a similar
“cash-in-cash-out” form of smoke & mirrors – he just didn’t quite
have the same “blessings” in place to create more magic-money, that the financial sector does!
The
current ilk of financial vested interests across the globe, with their
preferred political bodies set in place, are never going to do the
average people of the world any favours. The System needs burning down
& starting again, but short of that actually happening, all “we the
people” can do is try to keep our own financial futures in our control while the Big Game is still being played…
I
am personally a fan of the new Nickelback song “Edge of a Revolution”.
Like many other songs of this lyrical persuasion, it sums up The System,
in 4 mins of F**K YOU style!.. 😀
And maybe, just MAYBE, one day the
people of the world will actually wake up enough, grow-a-set big enough
& CHANGE The System…
al says
… Jenny… but
it seems? – they DO see your view and ‘live’ (your) ‘the nett equation’ as on “their own version of the other side“ and they do accept/take the power that you note and by there/by a or allows that – double headed coin that gives them the platforms to direct all those – “response ability” = to others, make ‘us’ have the “ability to respond” as they see /call it
‘elsewhere’ ie: … ‘we are choosing’ from lower down’ (ie, “it’s not for us”) ‘as we have all responsibility for these others issues’, BALD as brass nuts – “tiered monopoly” owners of the (whole world) it’s the corporate/gov’ts – game board ? – they have the six sided dice – everyone
else has five sided dice /rolls every year = + tax (is ‘natural’ as part of the game) “modern “monopoly of lords past? .. is our future” – as was our past then, now our more recent in-corporated(?- bored)- board’s game – a Disney tool that re-inspired (or that we were
re-anointed/confirmed again = ‘re-deceived’) as a whole new huge rising wave of mass conscience-ness with all their very subtle re-manipulations.
it’s a spiked drink ‘game’ ‘playing’ on mass conscience-ness, a ‘re-legion’ as if accepting their mass prescription of the original ‘bit – coin’ that could achieve re-seeding the (our new version of a prior) perpetual ‘religious world experiment’ – as it has been noted and is considered
…there is ‘nothing to money’ – except a ‘religious re- assembly’ of previous legions otherwise ‘believers’ in ‘god’ gave previous prescriptions of otherwise worded and stylized Popes before our current ‘Dopes(?) proposing of milk and m/honey assured us if we $$money$$ followed ‘them’ we would prosper and have equal benefits rights as long as we played their rules of the game – remembering their idea for a new game was, their ‘masses pasta’ idea, they were the bank, and did re-invent promote/provide the first of world handed ‘safe money idea’ otherwise how c/would ‘anyone play the game’ to get “what they” properly? truly needed -with no problems?! – with this system when tiering the god of money – gold became everyone’s
archangel and “His-story” ? was slid from an analogy onto a real living reality on “mass scale” as the dice game of ‘the poor’, mass poor became the game practice at home, mono-op-oly – idea – creators (shares in it?) said, its ‘fun to play’ unconditional-ly ( mass) fullyconditioned
generations into an institution of collective amnesia default, the almost complete seduction of entire species hypnotized by an unjust ‘religion’ that has false conquered/divided and tiered all “original human races” that had a first principle to share all necessary resources ensure the very survival of their own tribe/species, now we are so full of our capacity‘to be excessive’ –eg; Mr.Crusoe finally self-exploding is very as if – close to the reality of our new worldly order of $ conquistadors, perhaps saving 1 main difference is it Banks only perhaps ?
Matter of time before the $ pyramid inverts its own prime construction illusionary weight and (?) tragically(?) ‘just flops’ left or right, so to speak?) and (if needed) new paradigms are ‘point-if fi-cate-d’ into a real-ity in a new – ‘re – legion’ of heirs and graces.?
Or is there time to revive all original investigations such as the woman attempted as No.1 truly pissed off as follows …sad but true the eyes that knew the crud was being served saw it as this lone woman said … what the franking crap are you lot up – she smelled rat poo big !!!
i do not think the banks are prepared to stand the gold up – its not for anyone else as a dice game was a far better diversionary tactic and still not many people remember or plain know?
Early history[edit]
The history of Monopoly can be traced back to 1903,[2] when an American woman named Elizabeth (Lizzie) J. Magie Phillips created a game through which she hoped to be able to explain the single tax theory of Henry George (it was intended as an educational tool to
illustrate the negative aspects of concentrating land in private monopolies).
Her game,The Landlord’s Game, was self-published, beginning in 1906.[3] A series of variant board games based on her concept were developed from 1906 through the 1930s that involved the buying and selling of land and the development of that land.
Origin[edit]
By 1933, a board game called Monopoly had been created which formed the basis of the game sold by Parker Brothers, beginning in 1935. Several people, mostly in the Midwestern United States and near the East Coast, contributed to the game’s design and evolution, and this is when the game’s design took on the 4×10 space-to-a-side layout and familiar cards
were produced. The original version of the game in this format was based on Atlantic City, New Jersey. By the 1970s, the idea that the game had been created solely by Charles Darrow had become popular folklore: it was printed in the game’s instructions and even in
the 1974 book The Monopoly Book: Strategy and Tactics of the World’s Most Popular Game by Maxine Brady.
1936–70[edit]
In 1936, Parker Brothers began licensing the game for sale outside of the United States. In 1941, the British Secret Intelligence Service had John Waddington Ltd., the licensed manufacturer of the game in the United Kingdom, create a special edition for World War II prisoners of war held by the Nazis.[4] Hidden inside these games were maps,compasses,
real money, and other objects useful for escaping. They were distributed to prisoners by Secret Service-created fake charity groups.[5]
for myself when paying rent on Bond Street and all other Blue ribbon blocks gave me the craps as my brother always landed them with cash to splash and i paid his bloody rent more often than not he never coped any of mine as I could not buy anything after paying his rent first or second time round – life became a mirror he owns 3-4 houses and I own none – pay rent as if reality was scribed nearly 40 years ago … was it fate or prediction way back then – something is peculiar in life when monopoly ruled my future as if “very oddly pre-revealed and his too”? fate or not Monopoly sat on my pace and Lizzie tried warn us all!
P Man says
Do you even make sense bro?
Do you even read your own drivel?
Go play in the corner with the other kiddies that have been hit with the stupid stick….
Nathan says
stooges everywhere. do it yourself, get educated, and make informed decisions. it’s your future, so why not. If you don’t know what you’re doing, only see a fin planner who charges a fixed fee up front, that way you know they aren’t trying to sell you anything you don’t need. There’s an association- Independent Fin Planners or something.
Don’t get me started on insurance- another rort where brokers earn 150% of your first year’s premium!
JUST SAYING says
“A bit of a paradise for white collar crime”… Jon baby this place is positively Nirvana!