The Citizens Electoral Council is calling on all concerned Australians to demand their elected MPs oppose the new draft bill giving the unaccountable bank regulator APRA dictatorial “crisis management” powers. Tell your MP that instead they should act now to prevent a banking crisis by passing a Glass-Steagall separation of deposit-taking banks from financial speculation.
With more and more indicators pointing to an imminent crash of Australia’s housing bubble, which will trigger a collapse of the banking system, the Turnbull government is pushing to legislate “crisis management” powers for the bank regulator APRA (Australian Prudential Regulation Authority).
In the wake of the collapse of European banks including Spain’s Banco Popular, two regional Italian banks, and the bail-in/bailout of the world’s oldest bank, Monte dei Paschi di Siena, Europe has been debating new powers to allow bank accounts to be frozen during a financial crisis for between 5 and 20 days.
Now that Australia’s banks have had a number of years to heavily sell hybrid securities to retail investors, the Australian Prudential Regulation Authority (APRA) has confirmed that such securities will be the first bank liabilities written off—“bailed in”—in a banking crisis.
The leading institutions of the bankrupt trans-Atlantic financial system issued a report on 16 August, warning that there are no mechanisms in place at this time that can prevent a blow-out of the $600 trillion-plus global financial derivatives bubble, should any one major party default on its derivatives.
Australia’s big banks are careening along a cliff’s edge at breakneck speeds with ordinary investors strapped to their bumpers as human shock absorbers.
Bank regulator APRA is allowing the big banks to sell to unsuspecting Australian investors products that are illegal for banks in other countries to sell to anyone but other financial institutions.
