NAB's CEO cancels leave after inquiry report singles out bank for criticism
- by Shawn Tate
- in Economy
- — Feb 7, 2019
We have agreed to take action on all 76 recommendations in the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Relief that banks dodged what could have been hammer blows - forced breakups or tighter lending rules - sparked the biggest rally in financial shares in a decade.
The CBA releases its interim earnings later this morning.
The Aussie dollar is buying 72.22 United States cents from 72.30 USA cents on Monday. It has little or no prospects of continuing because it has abandoned its cold calling business model.
But Mr Thorburn said both he and Dr Henry were doing the right thing.
Orr: Do you accept that the board should have stepped in earlier? In the statement, both men rejected Commissioner's Hayne's comments and claimed to have been, well misunderstood.
"I can't confirm that [I will still have a job]", he said.
Commissioner Hayne Dr. Henry singled out Dr. Henry for especially sharp comment following his evidence at the royal commission which was largely regarded as dismissive.
The Federal Government is set to review general insurance broker commissions and non-monetary benefits in three years after Commissioner Kenneth Hayne made clear that he is generally opposed to financial services regime exemptions and carve-outs.
Ahead of the report's release, which came after the close of market trading in Sydney, shares in the "Big Four" banks closed up about 1 percent as investors looked forward to some certainty around the new regulatory framework. I wish we had, let me put it that way ...
"There will be nothing positive in the recommendations because the banks have clearly breached various obligations in the laws, and obligations to good customer service", said Matthew Wilson, a banking analyst at Deutsche Bank.
'At NAB we are determined to change and accept that we will ultimately be measured by the actions we take, ' Thorburn said. "The CEO is crucial to that, but I've got a very competent team and we've got hundreds of leaders who are mobilised around our strategy to be better for our customers".
NAB Chairman Ken Henry and CEO Andrew Thorburn.
"And given the seismic nature of this royal commission's findings, I think it's absolutely incumbent upon the government to ensure that parliament sits for as long as it needs to implement the recommendations".
"There is time to give some very careful reflection as to whether we want to argue in favour of the status quo or move to a different position". The Board has led a deep examination of our culture, governance and accountability.
While the changes are likely to make the financial sector more liable to be punished for violations, banks in the world's fourteenth-biggest economy have been spared any enforced breakup or interference in the way they choose to lend money. The 88% "no" vote was a record.
Thorburn was strident in his defence of Henry.
Former premier Mike Baird at his Curl Curl home on Tuesday morning before heading off to work as chief customer officer at NAB.
Mr Booth says the royal commission has highlighted the need for high standards across the financial services sector.
