The International Monetary Fund (IMF) is demanding that Australia move beyond the back door “bail-in” scheme passed last year, and enact a full, statutory bail-in regime that explicitly includes seizing deposits to prop up failing banks.
The Senate Economics Legislation Committee inquiry into the Banking System Reform (Separation of Banks) Bill 2019 must be a thorough investigation of structural separation.
The Senate Economics Legislation Committee on 14 February initiated an inquiry into the Banking System Reform (Separation of Banks) Bill 2019.
Click here for the inquiry website
One Nation leader Senator Pauline Hanson has introduced the Banking System Reform (Separation of Banks) Bill 2019 into the Australian Senate, for a Glass-Steagall-style structural separation of the too-big-to-fail (TBTF) banks.
The 18-page bill to separate the banks that Pauline Hanson will introduce into the Senate next week will do more to fix up the banking system than anything in Kenneth Hayne’s 1,133-page final report.
Royal Commission, Glass-Steagall, Banking / Finance
The Morrison government is already in damage control over the Hayne Royal Commission’s final report, which they will delay making public until Monday afternoon. But Australia’s government and banks are not the only ones chewing their nails in anticipation. The City of London banks are also nervous, desperate that Australia’s banking inquiry doesn’t lead to a similar inquiry in the UK. Bankers all over the world would be similarly nervous.
