BFCSA Blog

I was reading this article (link below at end) & was particularly concerned/apalled at one paragraph: "Variant says the Reserve Bank will come to the rescue of the big four Australian banks in a crisis because they are too important to fail." Is this why our banks treat us plebs (aka 'customers') with so much disdain & utter arrogance? The same attitude they displayed/presented/portrayed to the recent Senate Inquiry & those preceding inquiries? They believe they are too big too fail therefore they are above ALL laws in this unlucky country of ours? The next paragraph is quoting an Australian Analyst's perspective. I think she is caught up in the banks' hype & has not got a good grip on what is occurring in her own backyard so to speak. Then in her final paragraph this statement is made: "She noted that Australian banks were extremely profitable and now far less...

Had to love the very last line of this article....priceless!http://www.heraldsun.com.au/news/breaking-news/rba-accused-of-covering-up-corruption/story-e6frf7kf-1226445929914AN anti-corruption body has accused the Reserve Bank of Australia of covering up evidence of bribery by its note-printing subsidiaries. The RBA has been accused of covering up evidence of corruption by its note-printing subsidiaries.  Seven former employees of Securency International and Note Printing Australia (NPA) and the companies themselves have been charged with bribing foreign officials to secure contracts to print bank notes.Although no RBA officials or staff have been charged, the central bank has faced allegations it suppressed evidence of secret commissions paid to middle men hired by the subsidiaries to secure bank note contracts in Malaysia and Nepal.Transparency International Australia's executive director Michael Ahrens said the RBA's behaviour in the case was "tantamount to a cover-up"."We do believe that it was incumbent upon them to report promptly any credible evidence of the sort that seems to have emerged," he...

Back in early 2008, the Australian economy was going well. With the property market booming many businesses took out loans from Bankwest, a small but aggressive lender based in Perth.

Then came the GFC. With its parent company in Britain facing dire financial problems, Bankwest customers began withdrawing money from their savings accounts. The Reserve Bank was worried and the Commonwealth Bank saw an opportunity. Moving fast the Commonwealth took over Bankwest for the bargain basement price of $2.1 billion.

From everyone's point of view, including Australia's central bank, it looked like a good deal. But what happened next shocked customers.