Skullduggery or just large profit? The scrutiny of The Royal Commission is set to alter the way big banks do business. Economist Jonathan Barratt explains the major reasons behind the commission and how it will affect the economy, the property market and investors. Louise Bedford asks you what are your lions and tigers and bears in the market.
In 2017 Malcolm Turnbull ordered the commission to investigate the quality of financial advice in Australia.
In recent years the banking sector has exploded into big business. A bank is no longer just a bank, it is an insurer and a broker with fees and commissions designed to keep clients within the loop and the growth has created conflict. With a culture of fees to dead people, alleged bribes, forged documents, mishandling of people’s money there have been many complaints and questions about responsible lending practices.
In this interview economist Jonathan Barratt looks at:
- How property investors will be affected
- The Introducer programs and how a tailor was paid $500 000 in commission
- How farmers are affected
- Australia’s economy and how it compares to other major developed countries
- Where interest rates sit and their trajectory ahead
- Vertical integration of the banks and the conflict of interest
- The impact on share traders
Mindpower Louise Bedford
Remember the scene in The Wizard of Oz when Dorothy, Tin Man and Scarecrow walk through a dark forest and in an effort to see if they should genuinely be afraid of something they sing Lions and Tigers and Bears oh my.
Is the risk of the markets your lions and tigers and bears?