Friday, November 16, 2018

NAB boss Andrew Thorburn in $2.1 million pay cut as Royal Commission fallout bites; small banks fear squeeze from tough regulation and compliance

NAB chief executive Andrew Thorburn has copped a $2.1 million pay cut as a result of fallout and potential criminal misconduct emerging from the financial services Royal Commission taking his pay down to $4.3 million.

The penalty comes as chief executives including Mr Thorburn prepare to face intense grillings at the Royal Commission which begins its final round of hearings on Monday. 

At the same time, the Customer Owned Banking Association fears smaller banks might be squeezed out of the sector amid tougher compliance as a result of the Royal Commission. 

Here's my report from The World Today

Banking royal commission prompts $51.5m funding boost to expedite prosecutions, plan for Federal Court to take on corporate crime

Bankers and financial institutions are about to come under more heat with commonwealth prosecutors and the Federal Court given more money to pursue cases of criminal or civil misconduct that have emerged from the banking Royal Commission.

The $51.5 million boost comes as bank chief executives prepare for an intense grilling when the Royal Commission begins its final round of hearings next week. 

Meanwhile, smaller banks worry that tougher compliance might squeeze mutuals, credit unions and building societies out of the industry. 

ABC's Peter Ryan explains

Thursday, November 15, 2018

Jobs boom rolls on with unemployment at its lowest since April 2012

Australia's jobs boom has rolled on for another month with a better than expected 32,800 jobs created in October according to the ABS. 

That was enough to keep the jobless rate at a six year low of five percent. 

ABC's Peter Ryan says a tightening labour market could eventually push wages higher ahead of the federal election.

Wednesday, November 14, 2018

Wages yet to pick up much momentum, up just 2.3pc over the year

Australian wages are a bit fatter - but not by much. 

The Wage Price Index for the September quarter shows wages grew by 0.6 percent. 

According to the ABS, wages grew 2.3 percent over the year seasonally adjusted. ABC's 

Peter Ryan goes through the numbers which are increasingly important with an election scheduled for next year.

Tuesday, November 13, 2018

Westpac's $35m responsible lending law settlement with ASIC rejected by federal court judge

A federal court judge has refused to approve a $35 million penalty agreed to by Westpac even though the bank admitted breaking responsible lending laws. 

Justice Nye Perram said "admirable ingenuity had been applied" by ASIC and Westpac's lawyers to "gloss over the the very real differences which exist between them" and said he was not in a position to judge whether the $35 million fine was appropriate.  

Here's my report on The World Today where I also speak with HIH royal commissioner Neville Owen

Tesla's walking brand Elon Musk to be tamed by Telstra executive Robyn Denholm

Top Telstra executive Robyn Denholm has been recruited to replace Elon Musk as chairman of the electric car maker Tesla. 

Ms Denholm has been appointed after a string of questionable judgement calls from Mr Musk, such as smoking marijuana on camera, and more recently accusations of fraud from US financial regulators.

Here's my report