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You can find the current article at its original source at https://www.theguardian.com/australia-news/2016/oct/05/labor-to-interrogate-anz-chief-over-interest-rates-and-timbercorp-scandal
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Labor to interrogate ANZ chief over interest rates and Timbercorp scandal | Labor to interrogate ANZ chief over interest rates and Timbercorp scandal |
(about 1 hour later) | |
Labor will pressure the head of ANZ bank to answer questions about the Timbercorp scandal when he appears before the Turnbull government’s bank hearings on Wednesday. | Labor will pressure the head of ANZ bank to answer questions about the Timbercorp scandal when he appears before the Turnbull government’s bank hearings on Wednesday. |
Shayne Elliott, ANZ’s chief executive, will also be asked about financial planners banned from the bank, and remuneration structures that encouraged staff to offer financial advice unfit for customers. | Shayne Elliott, ANZ’s chief executive, will also be asked about financial planners banned from the bank, and remuneration structures that encouraged staff to offer financial advice unfit for customers. |
Elliot will face a 10-member committee for three hours on Wednesday morning, a day after Commonwealth Bank’s CEO Ian Narev faced the same committee. | Elliot will face a 10-member committee for three hours on Wednesday morning, a day after Commonwealth Bank’s CEO Ian Narev faced the same committee. |
Narev was the first bank boss to appear at this week’s highly anticipated hearings, which were set up by the Turnbull government in response to pressure for a royal commission into the banking industry. | Narev was the first bank boss to appear at this week’s highly anticipated hearings, which were set up by the Turnbull government in response to pressure for a royal commission into the banking industry. |
He emerged unfazed from the grilling, having answered questions easily about controversial incidents at his own bank. | |
It emerged on day one of the hearings that Commonwealth Bank has recruited former Liberal party federal director Brian Loughnane as an adviser. | It emerged on day one of the hearings that Commonwealth Bank has recruited former Liberal party federal director Brian Loughnane as an adviser. |
Loughnane, the husband of former Tony Abbott chief-of-staff Peta Credlin, stepped down from his role shortly after Malcolm Turnbull toppled Abbott. | |
“Brian Loughnane is not employed by CBA,” Narev told the committee members. | “Brian Loughnane is not employed by CBA,” Narev told the committee members. |
“It’s a matter of common record that he and a number of other people have helped us generally in thinking through how we best respond to a range of issues but, no, he is not an employee of the bank.” | “It’s a matter of common record that he and a number of other people have helped us generally in thinking through how we best respond to a range of issues but, no, he is not an employee of the bank.” |
ANZ is being pursued in the courts – along with NAB and Westpac – by the Australian Securities and Investments Commission (Asic) over unconscionable conduct and manipulating the Bank Bill Swap Rate between 2010 and 2012. | ANZ is being pursued in the courts – along with NAB and Westpac – by the Australian Securities and Investments Commission (Asic) over unconscionable conduct and manipulating the Bank Bill Swap Rate between 2010 and 2012. |
ANZ has denied wrongdoing and is challenging Asic, as have Westpac and NAB. | ANZ has denied wrongdoing and is challenging Asic, as have Westpac and NAB. |
Labor MP Matt Thistlethwaite says he plans to pursue Elliott over the Timbercorp scandal on Wednesday. | Labor MP Matt Thistlethwaite says he plans to pursue Elliott over the Timbercorp scandal on Wednesday. |
In 2009, two of Australia’s largest agribusiness managed investment schemes (MIS) – Timbercorp and Great Southern – collapsed, followed by other major schemes, including Willmott Forests Ltd and Gunns Plantation Ltd. | In 2009, two of Australia’s largest agribusiness managed investment schemes (MIS) – Timbercorp and Great Southern – collapsed, followed by other major schemes, including Willmott Forests Ltd and Gunns Plantation Ltd. |
A senate report from earlier this year, called Bitter Harvest, found forestry management schemes saw $4bn in investment flow into the sector after special tax treatment was given by the Howard government, only for the schemes to collapse. | A senate report from earlier this year, called Bitter Harvest, found forestry management schemes saw $4bn in investment flow into the sector after special tax treatment was given by the Howard government, only for the schemes to collapse. |
As a result, thousands of people lost their life savings. | As a result, thousands of people lost their life savings. |
The principal lender to Timbercorp was ANZ Bank. Investors blame ANZ for its handling of the financing arrangements, and for its handling of Timbercorp’s insolvency with insolvency practitioners KordaMentha. | The principal lender to Timbercorp was ANZ Bank. Investors blame ANZ for its handling of the financing arrangements, and for its handling of Timbercorp’s insolvency with insolvency practitioners KordaMentha. |
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