Bank reform to crack down on collusion
(5 November 2010 – Australia) If bank bosses are found to have colluded on interest rate rises they could face multi-million dollar fines under plans by the Government and Opposition.
The reform bill to be introduced by the Coalition with the next fortnight will give competition regulator, the Australian Competition and Consumer Committee (ACCC), powers to subpoena bank CEOs and documents under suspicion of collusion on rates.
Treasurer Wayne Swan has been working closely with major financial regulators for months on a plan that would not only see the ACCC gain investigative powers into collusive practices among banks, but also close loopholes on cartel behaviour in other industries.
Mr Swan highlighted that putting together the correct finer details was imperative so the reforms were beyond challenge.
'This is a major part of our second-term agenda that we have been working through for months and we're going to get it right so Australian families have a fighting chance in the banking system,' Mr Swan said.
Two key independents and the Greens have so far indicated support "in principal" the measures Opposition Treasury spokesman Joe Hockey will introduce in as a Private Members Bill over the coming weeks.
The supporters of Mr Hockey’s bill said they were anxious to see the Government’s proposed reforms, due to be made public next month.
Treasurer Wayne Swan has been working closely with major financial regulators for months on a plan that would not only see the ACCC gain investigative powers into collusive practices among banks, but also close loopholes on cartel behaviour in other industries.
Mr Swan highlighted that putting together the correct finer details was imperative so the reforms were beyond challenge.
'This is a major part of our second-term agenda that we have been working through for months and we're going to get it right so Australian families have a fighting chance in the banking system,' Mr Swan said.
Two key independents and the Greens have so far indicated support "in principal" the measures Opposition Treasury spokesman Joe Hockey will introduce in as a Private Members Bill over the coming weeks.
The supporters of Mr Hockey’s bill said they were anxious to see the Government’s proposed reforms, due to be made public next month.
Subscribe