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ASIC dismisses claims of bank misconduct

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Australian Broker | 15 Sep 2015, 08:37 AM Agree 0
ASIC has dismissed claims of bank misconduct in commercial lending, saying there is not enough evidence to take enforcement action
  • Spencer Murray | 15 Sep 2015, 08:47 PM Agree 0
    How very convenient to say that ASIC has not got the power to prosecute criminal bank behaviour. What a cop out. Why has the government got this USELESS department if their hands are so tied? The government should redraft the act so that Australian citizens can get some truth. CALL A ROYAL COMMISSION INTO BANKING CRIMINAL ACTIVITY. We will then see how useless Medcraft & Co. have been.
  • Tim H | 16 Sep 2015, 10:03 AM Agree 0
    This response from Mr Medcraft highlights the question so many brokers are asking: What just is the purpose of ASIC in the lending industry?

    They say they are there to police the industry, but when it comes to actually carrying out that function there appears to be some major issues on what they can do and to whom.
    I have seen documentation regarding a number of the commercial lending cases where Bankwest and CBA were involved, and while the banks acted within their rights under the loan contract, the actions of the bank certainly were bullish and bullying in the extreme and brought a lot of good people to their knees unnecessarily.

    The documents I read also brought in to question the actions of the solicitors and receivers appointed by the banks and the outrageous fees charged by these people. Again their conduct could be described as bullish and bullying in the extreme.

    Like Spencer Murray, I think the actions of the banks should be investigated more thoroughly and if a Royal Commission is the solution then bring it on.

    The sledge hammer approach against brokers compared to the wet lettuce leaf action of ASIC against the major banks over recent times is just laughable.
  • Harold Spencer | 16 Sep 2015, 11:16 AM Agree 0
    "The sledge hammer approach against brokers compared to the wet lettuce leaf action of ASIC against the major banks over recent times is just laughable."

    If only it was laughable! This is the single greatest issue facing our industry. ASIC needs to provide a level playing field for all stake holders and by not (being able) doing this they are letting all Australian's down. ASIC wants more power and more funding yet the argument to support their wants is diminished every time by their inaction to handle what they have at the moment. If a broker were to act in anyway near what the lenders do the broker business would be prosecuted and lauded in the media however when it's a lender ASIC seems to fall over itself offering excuses.
  • Spencer Murray | 16 Sep 2015, 08:16 PM Agree 0
    When enough pressure from the public on the government to call a Royal Commission into bank fraud. It NEEDS to be extended to include the actions of receivers & the legal firms acting for these corrupt banks also.
  • GC | 17 Sep 2015, 04:06 PM Agree 0
    Be careful what you wish for gentlemen. It would be incredibly dangerous to have a royal commission into the banks as they effectively run the country and are too big to be pulled down.
    Probably smarter to work with them and just ensure YOU are acting honestly.
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