Bank royal commission would be ‘rank socialism’: Howard

In an interview to be aired tonight, John Howard warns his colleagues against a royal commission into the banks.

John Howard last week.

Former prime minister John Howard has slammed a royal commission into the banks as “rank socialism”, warning the Coalition that embracing such a policy would damage the Turnbull government’s fortunes.

Malcolm Turnbull yesterday ruled out a banking royal commission, dismissing a Daily Telegraph report that he and his cabinet discussed reversing their policy on the issue amid threats from National Party senators and MPs to cross the floor.

Maverick LNP MP George Christensen this week said he remained committed to crossing the floor on a banking inquiry, but will not do so before Barnaby Joyce’s December 2 by-election.

Queensland Nationals senator Barry O’Sullivan has also indicated that as many four Coalition MPs, including Mr Christensen, could provide the votes necessary for a commission of inquiry into misconduct in the banking sector, and as many as ten Coalition senators could use the precedent WA Liberal senator Dean Smith’s same-sex marriage bill to support legislation in the upper house.

In an interview due to screen in full on David Speers’ Sky News program this evening, Mr Howard warned against the move.

“Our banks demonstrated in 2009 that they were among the best-run, the most prudentially supervised, and the most well-capitalised in the world,” Mr Howard said.

“I say to my former colleagues and the people I still support, don’t embrace a royal commission, and to those in the National Party and elsewhere who might see this as some kind of retaliation for co-operation between people on the same-sex marriage issue, I would say that I agreed with those people in the National Party on the substance of the same-sex marriage issue, but that is over.

“Let’s not visit upon the Coalition and the fortunes of the government your anger and disappointment about that issue.”

Morrison defends meeting with banks

Treasurer Scott Morrison earlier defended convening an urgent meeting with the chairs of the big four banks, saying he meets with them on a regular basis.

As The Australian revealed today, Mr Morrison has summoned the chairs of Commonwealth Bank, Westpac, ANZ and National Australia Bank to a series of urgent, private meetings amid mounting internal pressure from Coalition MPs for an inquiry into the big four banks.

It is understood the Treasurer’s office has requested as-soon-as-possible appointments for Mr Morrison with the ­Commonwealth Bank’s Catherine Livingstone, ANZ’s David Gonski, Westpac’s Lindsay Maxsted and NAB’s Ken Henry to be held before the delayed ­sitting of the House of Representatives on December 4.

Mr Morrison said he met with the banks regularly as Treasurer.

“I speak to the CEOs and executives as you would expect me to do. I meet every month with the Reserve Bank,” he said.

“I meet every month with the head of APRA, as you’d expect me to do. I meet with the council of financial regulators and one of the things we did at the Council of Financial Regulators earlier this year is we put in place the new measures around interest-only lending and that measure on interest-only lending has been incredibly successful.

“So, look, I meet with them all the time. I’ll be having further discussions with a number of them today.

“For some years now I’ve been talking to the banks about resolving some legacy cases where people have had issues. These cases have been raised in various fora. I’ve been impressing upon them for some time now the need for those cases to be resolved and, like in other meetings I’ve had with them, I’ll continue to have those discussions as well as on other matters.”