Limit to Labor’s bragging rights

There’s plenty of blame to go around

Inside 48 hours we have seen the opening of the floodgates of the Townsville dam together with the release of the sluice gates of the banking royal commission. Only one of these was an act of God while the other arose out of a ravenousness for profit.

Stephen Covey, the late American author, businessman and keynote speaker reminds us that “moral authority comes from following universal and timeless principles like honesty, integrity and treating people with respect". Our financial institutions have a fair bit of catch-up work to do.

Ed Sianski, West Moonah, Tas

My family have been shareholders in and customers of NAB and its predecessors for more than 150 years. I am in my 80s and over that period I have had the pleasure of dealing with some wonderful people who have devoted their lives to advancing the bank and helping its customers. Thank God many of these people are not alive to see the way their legacy has been destroyed by the self-interest of the current leaders.

Terry O'Connor, Fremantle, WA

By failing to acknowledge on the ABC’s 7.30 program the irresponsibly belated royal commission and its limited time and resources Josh Frydenberg was trying to crawl out from under. The repeated refusals of a royal commission, not least by Scott Morrison as treasurer, displayed a morally bankrupt cabinet and government indifferent to the huge numbers of Australians whose lives and businesses were ruined by the banks.

If the ALP zestfully pursues the Morrison government over such blatant dereliction we must ask what 24/7 Kevin did to bring the banks to account. Both sides of the party playground should now be exposed.

Frank Carleton, Longwarry, Vic

While Labor can justly claim some bragging rights for its insistence on the banking royal commission, against the Turnbull-led government’s resistance, we should be thankful that it took place under the Coalition, and that action will start under Josh Frydenberg (“Banking royal commission: Shorten inherits a powerful legacy”, 5/2). As Kenneth Hayne’s report insists, and your economics editor Adam Creighton explained last week, we must not cripple this vital institution, which in effect creates the bulk of our money supply as credit. Actually, it was Labor governments that destroyed the state banks and Paul Keating who privatised the Commonwealth Bank. Australia thereby lost the means of creating credit for national projects, while the lending market was spared a rival to keep the private institutions honest.

John Morrissey, Hawthorn, Vic

Paul Kelly is right when he predicts the joy ride to be embarked upon by Bill Shorten and Labor as they endeavour to discredit the Government over the banking royal commission. However, if voters are sensible they will understand why Scott Morrison was reluctant to go after the banks in this way: he perhaps feared the outcome and the impact it might have on a fragile economy. We will now witness this fear unfold and it will likely not be very nice.

John George, Terrigal, NSW

Years ago I worked for what was the respected Bank of NSW, now Westpac. Apart from making a name change to resemble a supermarket their values became skewed. No one in the 1960s working in the bank would have dreamed that it would become so despised. We had a bank that was for the people and really cared about them. The staff, including the manager, were respectable and decent people. I worked in the bank’s travel department in London and young Australians on their working holidays would pick up mail that the bank held for them. It was like working for a family. How the mighty have fallen.

Marianne Stevens, Halls Head, WA

Treasurer Josh Frydenberg says it is up to shareholders to decide what should happen to the directors who appoint the executives who run the big banks. Many shareholders may be tempted to remove the directors who have presided over the behaviour revealed by the Hayne royal commission. However, should shareholders remove the directors and, indirectly, the managers who have also made banks such good investments? Bank shareholders may face the choice between what is morally right and what is in their financial interests.

Rod Wise, Surrey Hills, Vic