Australia’s biggest banks are in the dock


BANKS often face conflicts of interest when it comes to advising their customers. The regulators who are supposed to stop the abuses that can result are not always up to the job. But when wrongdoing does finally come to light, the penalties can be vast. Financial institutions in Britain have had to lay aside £40bn ($ 52bn) to compensate customers mis-sold payment protection insurance. Wells Fargo was fined $ 1bn by American regulators and ordered to reimburse the people to whom it had sold useless insurance or mortgages with inflated fees. Now it is the turn of Australian banks to face a reckoning.

A royal commission has exposed a litany of abuses. Its interim report, published on September 28th, paints the country’s financial institutions as consumer-crushing oligopolies. Lenders charged hidden fees long after providing services, and for some services they never provided at all, on occasion to people who were dead. They siphoned off at least A$ 1bn ($ 720m) of compulsory pension…

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Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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