A Royal Commission into the Banking Sector is long over due.  The last one occurred in 1986 and immediately after, the banking and finance market became de-regulated.  If there was a semi regulated uneven playing field prior to 1986, to ensure 1929 never happened again, protections for consumers were intentionally vaporized in 1986.  

During the eighties and nineties, ordinary Mums and Dads lost over $2.2 billion dollars.  Notoriously, the Estate Mortgage collapse 1989 rocked Australia as "the big one." Retirees had ploughed masses of dollars into worthless developments, whereby any cream had been milked by promoters.  At the bottom of these dung heaps, bankers, lawyers, accountants, friendly valuers and developers (elite customers of our banking system)  featured in the rape of ordinary citizen's  modest nest-eggs.   Many other investment companies collapsed soon after and the old Corporate Affairs Commission ("CAC") felt the hot air of public wrath breathing down their necks.  Due to the extent of the losses, the Labor Government heralded in the new tough corporate regulator Australian Securities Commission in 1992.

More losses continued in the form of Managed Investment Schemes, and the spectacular Solicitor Mortgage Scams run by 127 morally bankrupt law firms, and another $1.5 Billion was caught up in a 'free for all' of losses.  Those who had saved enough for retirement were targeted and bilked in an unprecedented orgy of banker greed.  But the property market and building industry boomed as the select few received money, then systematically destroyed this new found pot of wealth.  Developers, Bankers and Lawyers cared not that the funds came from these sources....its was not their money.  Banks received the money indirectly through Trusts and fed the funds into the property and building markets.

That's what banks do.........................isn't it?  Banksters were behind the sourcing projects...............go after the retirees.  Watch out for your super dollars................TIP all dollars into risky business.  Other players were blamed for the carnage but no-one suspected the Bankers as the Godfathers of the "Creating Wealth" industry.  The only ones with obscene wealth were the Banks and they needed lots of luscious new victims to continue to pay their BONUSES.   Bankers had created a way to make money but NO LIABILITY or responsibility, by having developers offload distressed property projects onto the hapless "financially illterate" consumer.

ASC executives simply took the Boys at Banks, out to lunch, laughing all the way back to their 20th floor office suites.

ASIC's birth in 1998, destroyed the old ASC, with over 50% of the staff pushed into resignation, including those who were the best investigators in the business.   The human resource "memory" loss was incredible.  Non of the new recruits knew the old "offender names."   The old crew of corporate regulators , who had complained "we do not have enough powers to tackle big business," were immediately made redundant.   The ASIC favoured "gene-pool" came into being in the Howard Years.  Prospectuses which had been policed by officers was phased out.   Consumers had to look after themselves.  Liberals were now in charge of minding the shop, and promised the system of corporate governance would be made the best in the world.  Yet this was the dawning of the BIG FREE MARKETS.  Every citizen (except Bankers and insiders) expected big changes in consumer protection.

Changes did occur for a short while as a result of both sides of the political divide agreeing on the fact that consumers were being led like lambs to the slaughter by what we were told was a need for strict Corporate Governance in the area of financial products and services.

The then Federal Treasurer announced in an international speech in 1997, and arising from the Stan Wallis Inquiry into Banking, "Australia will have the best consumer protection system in the world."  From the ashes of consumer losses, and little or no tragedy befalling the perpetrators of the scams raging across the nation, along with a plethora of corporate collapses, the "new age" Australian Securities and Investment Commission ("ASIC") rose like a phoenix from those ashes of despair.  

The ASIC Chiefs, when confronted with more consumer losses, complained again "not enough powers."  The old provisions (which were protective legislative requirements of the "prescribed interests" section of corporate law, were simply revamped into the new 2001 "Managers Investments" provisions under the Corporations Act.  Yes there were laws back to the seventies to enable strong consumer protection but no-one was using them.  We asked the regulator via the Federal Parliament: do you have enough funds?"  Each time Corporate Chiefs were asked this question the answer was always "we have plenty of funds, we need more powers."  Senator Coonan responded inside and outside of Parliament: "ASIC has plenty of powers!!!!"  Coonan (LIBS) in 2005, becoming so angry at ASIC, did not hold back............................  Senators Conroy in 2004 and Sherry 2005 (LAB), also threw in barrels of questions to ASIC chief Jeffrey Lucy and off-sider Peter Kell.

At one outburst: "I do not care if we are here for three days Mr Lucy, you will answer these questions!" Senator Andrew Murray (DEMs) delivered a ten minute broadside at NAB over one case 2004, in a grievance over a one million dollar loan to a vulnerable Coogee pensioner.  The Senate was already gearing up for a specific Inquiry into the secret world of ASIC's negligence where consumers were concerned.  ASIC was lying to Parliament, yet Senators at that time could not crack the code.  Amongst those people was Senator Williams (NATs)  determined to expose the Bankers and ASIC incompetence or worse.

SCAMS had continued unabated and all connected with Banks, yet banks remained blameless, why?  Promissory Note Scams in 2001 along with bank driven Spruiker Seminars, Creating Wealth Gurus - ASIC even gave these bods "industry" status on their website as if it was safe for consumers.  The old ANZ/Origin Two Tiered Marketing Scams of the nineties reappeared with over-inflated property prices, then repossess homes and set the properties up a second time with friendly valuer mates and more victims in the pipeline.  It was like a double-header TOOL with benefits.   Remember the promotions - $100 flights to another state.....use your home equity to buy a second property?

Yes the risk was the 130% LVR with over inflated valuations by crooked valuer mates.  Most lost their own home and the loss of the investment property and became homeless.  Well that sure helps the economy!  Retirees became pensioners overnight!  Another disgraceful bank driven economic plus. Regulators once again sat on the sidelines and in fact were able to "watch the Rigged Races from their free Corporate Boxes!"

By 2006 ASIC had to admit to $80 billion at risk.....................and in 2003, IMF warned Australia of massive property bubbles emerging.  

The Bank Tsunami of destruction would sweep up a huge number of Australian citizens aged between 50-90, that bankers could get their grubby hands on.  Money was money: "better in our pockets than these old fogies and illiterate simpletons.  By the time they wake up we will be long gone with FAT BONUS cheques of $4 million a year and a government gong or three....................a medal for services rendered. Yee Ha Grandma!  "

Then in 2005 with the same ASIC/ABOS/FICS in a fix gene-pool swimming around in the regulatory system, where covert relationships are not only at their peak between Bankers and ASIC Chiefs, but consumer complainants escalated to unprecedented levels.  The new consumers were not just retirees,  but now pensioners and low income families........................new markets with bankers licking lips at the asset haul of potential $100 billion: the unthinkable to decent people: "target ARIP's - Asset Rich and Income Poor - ie pensioners.

A typical behind the closed doors conversation would be:-

"We the Banksters will provide the ultimate computerized "selfie" TOOL.  We are untouchable as with ASIC's help and self regulation, we can then lumber the blame onto the Brokers and Borrowers!  Just like the old days - the seventies - when we could blame the Developers and Retiree "investors." No liabilities and no responsibility we simply rigged the horse race from the beginning.   NO-one realised it was us....THE BANKS.   Ye Ha Grandpa!  

The message is out there:  How to create a business that is the most profitable in the world, using a faulty banking product, whereby the fault lies undetected for 20 years and beyond.....we need a new vehicle. create a new "selfie" TOOL - a secret weapon - and work out who to blame.....oh and we better rig the horse race so that we are the winners and everyone else loses.  We need friendly lawyers and valuers.  We retire with $18 million payout, whilst we shatter everyone else's retirement.  We cannot lose!  Peter Kell inspects the track!  Medcraft's a bonzer bloke - one of us.  No worries Mate!"

Stay tuned for PART II of II    This email address is being protected from spambots. You need JavaScript enabled to view it.