Aussie bank shares soar as banking report goes softer than expected

Aussie bank shares soar as banking report goes softer than expected

Aussie bank shares soar as banking report goes softer than expected

Hayne in his final report released on Monday singled out NAB boss Andrew Thorburn and chairman Ken Henry for arrogance over wrongdoing.

Hayne's recommendation that mortgage broking be moved fully to a fee-for-service model in which borrowers would pay brokers, not the banks, has too many people anxious - not just mortgage brokers, but people concerned about banking competition.

Labour says it expects to adopt all the commission's recommendations.

"Let me just get up to speed on everything", he said.

"That tells me that there is a recognition that what brokers provide helps competition and aids consumers, and I don't think anyone wants to throw that out immediately".

Veteran bank analyst Brian Johnson of CLSA believes the recommendations of the Royal Commission report are broadly in line with his expectations and given the banks have already begun to implement numerous recommendations (and their share prices already de-rated), he thinks banks stock prices could now move higher.

Mr Booth says the Government's acceptance of the royal commission recommendation should also put the ACCC proposal on hold until that time.

"There is growing speculation amongst traders that. we could actually see more certainty in the sector, despite likely bad news, and that certainty will be enough to bring a bounce this week", said Michael McCarthy, chief market strategist at stockbroker CMC Markets. We are the only bank to publicly release our assessment, which clearly outlines 26 areas we are focusing on to be a better bank. The Board has led a deep examination of our culture, governance and accountability. I am proud to be CEO of NAB, and am more determined than ever to lead NAB with even greater urgency and intensity and show through our ongoing actions that we do what we say....

"I thought it telling that in the very week that NAB's CEO and Chair were to give evidence before the Commission, one of its staff should be emailing bankers urging them to sell at least five mortgages each before Christmas".

Hayne says this is obvious from the regulator's "blunt response" to one proposed remedy for the misconduct in April a year ago. "Major Banks breathe a sigh of relief", suggests Citi.

But Mr Thorburn said both he and Dr Henry were doing the right thing. But, despite that reaction, it still took NAB until September 2018 to agree a position with ASIC about the remediation of some of its customers.

Ross: "Did the board at least talk about your the future at the bank?" "Fix this, and fix it now". "In my view, it is clear that NAB's board should have acted sooner to impress on management the importance of resolving this issue quickly, and resolving it in a way that was in the interests of NAB's customers".

"I agree that when you read the reference to myself and chairman Ken Henry, I found that upsetting and hard to read", he said.

In a statement to the Australian Securities Exchange on Tuesday morning, both said they were planning to stay on, with Thorburn announcing that he had cancelled his planned long-service leave, which had been scheduled to continue for the rest of the month.

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