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Westpac NZ CEO David McLean says Aussie Royal Commission chance for NZ to get a free ride, defends vertically integrated banking model, sees increased mortgage market competition

Business
Westpac NZ CEO David McLean says Aussie Royal Commission chance for NZ to get a free ride, defends vertically integrated banking model, sees increased mortgage market competition

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7 Comments

If the Aussie Royal Commission examines the NZ Banks David is right otherwise we just don't know and without a NZ Enquiry will not know and trust that those who may be further inducted of unacceptable practices in Australia are telling the truth about their NZ operations. Just seen a squadron of pink pigs pass overhead.

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A classic. "Well he would say that wouldn't he" (thanks Mandy Rice Davies). I can only read the headline, but that's all I need.

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How can an inquiry be a mistake? It may not uncover anything but it can never be a mistake. When vested interests come out and make "it will be a mistake" statements, they're just making red flags. All the more reason to have an inquiry.

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I seem to remember not so very long ago, the Australian Prime Minister saying and the CEO's of the Big Four Australian banks standing together in a photograph saying that a Royal Commission was not necessary. How awfully wrong they were. Does David McLean think that we live in a bubble where can't read the Australian newspapers on-line where scandal after scurrilous scandal has been exposed. Every time I walk into an NZ bank branch, a teller is trying to sell me something from their investment products. Unbiased advise, in the best interest of the customer. I think not. If there's nothing to hide, then there should be no fear of anything that an inquiry might find. Let's find out shall we.

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They are the same banks!
This mans bank has the same name.

In corporate finance speak.
How can a subsidiary be better than the parent?

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And the answer according to Fitch..

Ratings agency Fitch has signalled concern with ASB Bank’s ability to repay its creditors, following a damning report into the culture and governance of its parent Commonwealth Bank of Australia (CBA).

https://www.newsroom.co.nz/2018/05/08/107886/fitch-gives-asb-negative-r…

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https://www.smh.com.au/business/banking-and-finance/does-banking-attrac…

Top down, systemic reform in the ways our financial institutions are managed and controlled is evidently long overdue. An established culture of careless disregard for customers, clients and corporate regulators are sure signs of a sector in need of rescue from itself.

Of all the data collected during the Swiss experiment, the most telling of all came from its survey of which sectors in society the general public believed would be most likely to cheat in the coin-tossing exercise. Banking topped the list, way ahead of even prison inmates. Not that that would surprise us anymore.

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