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Banking royal commission: Labor asks Turnbull for compensation scheme

Letter to prime minister calls for inquiry extension, victim compensation and apology from Coalition
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Labor has demanded the government establish a compensation scheme for victims of banking misconduct, as Turnbull government ministers struggle to deal with the fallout of the royal commission’s revelations after just two weeks of hearings.

In a letter to Malcolm Turnbull, written just hours after the financial services minister, Kelly O’Dwyer, repeatedly refused to acknowledge the government was wrong to delay calling a royal commission Bill Shorten said an extension for the inquiry, an apology and compensation scheme were the “least the government can do”.

Related: Banking royal commission: all you need to know – so far

Related: Kelly O’Dwyer forced to admit banks royal commission was needed

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Source: The Guardian

Kelly O'Dwyer forced to admit banks royal commission was needed

Finance minister defends delay in calling inquiry, saying it was a ‘sober and deliberate’ decision
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Kelly O’Dwyer has been forced to admit consumers will benefit from the banking royal commission, while repeatedly refusing to concede the government was wrong to delay it.

Asked almost 10 times whether the government should have ordered a royal commission into the banking industry earlier, the minister for revenue and financial services refused to answer, repeatedly deflecting the question.

Related: ‘Ruthless, careless and irresponsible': readers share their banking nightmares

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Source: The Guardian

What happened this week is not a shock, it is capitalism as intended | Greg Jericho

One day perhaps this government will not treat voters like fools, but it seems we shall have to wait a bit longer

It has not been a good week for the government.

I don’t mean that in the standard, “poor optics” sense that often is used when commentators talk about who won or lost the week. Yes that too has been poor. After all this is a government led by a prime minister and treasurer who stridently criticised calls for a banking royal commission, and whose judgement on that matter has been shown to be utterly inept.

Related: Banking royal commission: all you need to know – so far

Related: The government owes voters an apology. Opposing this banking commission was wrong | Katharine Murphy

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Source: The Guardian

Why should future whistleblowers believe they will be safe? | Nils Pratley

Barclays’ Jes Staley tried to identify such an individual and has been allowed to keep his job

Jes Staley, chief executive of Barclays, had already conceded he made “a mistake” in attempting to unmask a whistleblower in 2016, so the regulators’ verdict on the affair counts as a big win from his point of view.

The Financial Conduct Authority and the Bank of England’s Prudential Authority found Staley breached rule two of their conduct code – the one about acting with “due skill, care and diligence” – but cleared him of a higher rule one offence relating to lack of integrity. Censure on the latter test would have killed his career at Barclays.

Related: Barclays CEO Jes Staley faces fine over whistleblower incident

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Source: The Guardian

Wells Fargo to pay $1bn in largest fine levied against a bank under Trump

Fine had been widely anticipated and comes after Donald Trump warned that administration planned to hold the bank to account

Wells Fargo has agreed to pay $1bn to settle claims tied to its auto insurance, mortgage and other financial products in what is the largest fine levied against a major bank so far in the Trump administration.

The penalty is part of a settlement between the bank and two regulators, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency, that derives from a series of consumer-practice crises at the bank.

Related: Wells Fargo takes back $75m from ex-executives after fake accounts scandal

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Source: The Guardian

Barclays CEO Jes Staley faces fine over whistleblower incident

City watchdogs say he broke rules of conduct in his attempts to identify 2016 whistleblower

Barclays’ £3.9m-a-year chief executive, Jes Staley, is to keep his job despite facing a reprimand and a fine from regulators over his attempts to unmask an internal whistleblower.

The size of the financial penalty that will be imposed on Staley – who received a bonus of more than £1m in 2017 – has not been disclosed.

Related: Why should future whistleblowers believe they will be safe? | Nils Pratley

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Source: The Guardian

Banking royal commission: all you need to know – so far

The inquiry into banks and financial services firms has revealed malpractice that in some cases has ruined lives

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The banking royal commission was established in late December, after years of public pressure from whistleblowers, consumer groups, the Greens, Labor, and some Nationals MPs.

Related: The government owes voters an apology. Opposing this banking commission was wrong | Katharine Murphy

Related: Has your financial future been destroyed by a bank?

Related: Westpac advice cost couple dream retirement, banking royal commission hears

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Source: The Guardian

AMP's chief executive to stand down immediately amid banking commission scandal

Craig Meller will leave the company, which has issued an unreserved apology for misconduct and failures

The chief executive of AMP will step down immediately following revelations from this week’s banking royal commission that the company had repeatedly lied to the regulator.

AMP’s board made the announcement on Friday, apologising for the company’s actions and saying the CEO, Craig Meller, will step down from his role with immediate effect.

Related: Banking royal commission: all you need to know – so far

Related: Has your financial future been destroyed by a bank?

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Source: The Guardian

Regulator needs stronger powers to deal with bank misconduct, Choice says

Consumer watchdog says it is clear AMP and Commonwealth Bank ‘feel no compulsion to abide by the law’

The corporate regulator should be given stronger powers, and the ability to impose larger penalties, to help it intervene more quickly when it discovers bank misconduct, the consumer group Choice says.

The call comes after another week of shocking revelations from the banking royal commission in which Commonwealth Bank admitted some of its financial advisers have been charging dead clients for financial advice.

Related: Westpac advice cost couple dream retirement, banking royal commission hears

Related: Commonwealth Bank charged fees to dead clients, royal commission hears

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Source: The Guardian