Category: Corman

Debunking the great Australian banking myth

Begging for help

There is a certain irony about Macquarie Bank warning against new financial regulations, when only six years ago it was begging the government for help, writes Ian Verrender.

Q. What are the two greatest weapons in a businessman’s arsenal?

A. Chronic memory failure among the broader community and a compliant business media.

Macquarie boss Nick Moore used both to full effect last week when he issued a dire warning to David Murray, the man heading the inquiry into the future of Australia’s financial system.

Think twice about imposing new regulations on our banks to protect taxpayers from a collapse, Moore warned. Such regulations could backfire and cost the nation dearly.

Missing was any hint of the frantic desperation of six years ago as Macquarie careered out of control, under siege from an army of steely eyed traders betting the bank would go down.

The panic took hold just a few hours after the collapse of Lehman Bros on September 15, 2008. What did Moore and his executives do? They went begging for help.

But you’ll never see or read the juicy details of emails found under FOFA They’ve been suppressed.

According to Treasury, should the contents of those emails or meeting notes ever come to light, they “could reasonably be expected to adversely affect the Macquarie Group”. Heaven forbid!

Macquarie was saved. And so began the myth that the Australian financial system somehow was better and stronger than the rest of the world, that it alone survived the great global financial crisis where all others failed.

It is a myth now being employed as a dangerous argument as to why Australian banks should not be subjected to the kind of controls now being considered by global regulators.

The bank’s share price plunged from about $98 to $15.75 as short sellers attacked what they believed was a mortally wounded beast.

Between them, they borrowed more than $120 billion under the taxpayer AAA guarantee with Macquarie accounting for about $20 billion. They now make a song and dance about having to pay a fee for the privilege – as though bank fees somehow are a foreign concept.

Mortgages on overpriced Australian real estate accounts now total about $1.3 trillion, 40 per cent of that sourced from offshore debt markets.

According to ratings agency Moody’s, mortgages account for about 65 per cent of all bank loans. Hardly what you’d call a diversified portfolio

No wonder bank executives are worried.


‘Economic girlie man’ Bill Shorten unloads on ‘sexist’ Finance Minister Mathias Cormann

Finance Minister Mathias Cormann has defended the ‘girlie man’ comment he made about BillOpposition leader Bill Shorten has hit back at comments made by Mathias Cormann.

Murdoch Press Head Line Above

FINANCE Minister Mathias Cormann has defended describing Labor opposition leader Bill Shorten as an “economic girlie man’’ arguing he’s not sexist because the term is not gender specific.

Stealing his lines from Republican and former Mr Universe Arnold Schwarzenegger, who has recycled the “economic girlie man’’ joke for years.

“I don’t think there’s anything gender specific here. Not girls, girlies, it’s very different. I hope you are not going to say I am a sexist misogynist.’’

According to Shorten

“This is the same bloke that was celebrating with a cigar in his mouth days before announcing cuts to pensions, family payments and universities.

The Telegraph Murdoch’s paper is doing their best to sanitize it.

The “economic girlie man” line has also been used on Shaun Micallef’s Mad As Hell comedy program on the ABC where it is regularly used as a longrunning gag by a character called Darius Horsham who is billed as Senator Corman’’s official spokesman.

Finance Minister Mathias Cormann defends calling Bill Shorten an ‘economic girlie-man’. Stole it from Arney…so original. Just like a financial adviser a (rip off)

Mathias Cormann at press conference

Deputy Labor leader Tanya Plibersek said Senator Cormann’s comments detracted from issues surrounding the budget.

“I think it is extraordinary that we have a PM who talks about shirtfronting the leader of [another] nation and we now have a Finance Minister who thinks he is Arnold Schwarzenegger,” Ms Plibersek said.

“What Mathias Cormann is missing is that this budget hurts vulnerable Australians.”

Labor’s trade spokeswoman Penny Wong told Sky News the phrase sends a worrying message to younger Australians.

“If we use girl as an insult what are we telling our sons and our daughters about being a girl? You’re saying it’s somehow less confident, weak, whatever the imputation,” Senator Wong said.

“I just don’t think that’s sensible. Imagine if we used any racial term in the way it was used. I think we would all be outraged for the same reasons.”

On Sunday the Finance Minister defended himself, saying that “‘economic girlie-men’ has come to adopt its own meaning”.

“It is not in any way intended as a reflection on girls, it is entirely intended as a reflection on Bill Shorten,” Senator Cormann said in a statement.

Tony Abbotts charm like Ebola  is soooooo  infectious.


Matt Corman says “Old News Move On” Let’s screw the new Oldies. He’s Belgian says it without smiling or his face would crack


Chris Bowen said the government’s changes to the FoFA regulations had scored a ”daily double” by reducing consumer protections from unscrupulous financial planners and increasing red tape.

”They’ve emasculated the requirement to work in the best interests of the client,” he said.

Now, independent Senators Nick Xenophon and John Madigan have introduced two amendments to tackle the worst and arguably most potentially dangerous aspects of the Coalition’s reforms – namely general advice and changes to the best-interests duty.

Considering the banks and AMP own or control up to 80 per cent of the financial planning industry, as Nick Xenophon put it,

“The financial services industry is big enough and ugly enough to look after itself and … consumers are the ones government should be providing with certainty and adequate protections.”

But hey…we’re open for business.  Caveat emptor.