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You can find the current article at its original source at https://www.theguardian.com/australia-news/live/2016/oct/06/banking-inquiry-nab-and-westpac-bosses-face-questions-as-focus-turns-to-donations-live
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| Banking inquiry: 'To be clean' – NAB explains decision to ditch political donations – live | Banking inquiry: 'To be clean' – NAB explains decision to ditch political donations – live |
| (35 minutes later) | |
| 4.14am BST | |
| 04:14 | |
| Brian Hartzer says Westpac “probably sources some external data sources” when asked if it uses information from third parties to sell products to its customers, but their own transaction history is the most valuable source when considering their banking needs. | |
| He said Westpac spotting a transaction to pay off a credit card with a competitor and offering that customer a credit card would be a good example of “healthy competition”. | |
| Customers can tick a box to opt out of such offers, he said. | |
| Updated | |
| at 4.15am BST | |
| 4.09am BST | |
| 04:09 | |
| Westpac chief Brian Hartzer said that bonuses for performance are less than 5% of a personal banker’s income and less than 2% for a teller. | |
| 4.03am BST | |
| 04:03 | |
| Matt Thistlethwaite has asked about refunds by Westpac of $9.2m in bank fees and $22m in credit card transaction fees. | |
| The chief executive says a large number of accounts were affected, including failing to give 150,000 students a waiver on fees and charging 800,000 accounts foreign transaction fees when they shopped on overseas websites. | |
| 3.58am BST | |
| 03:58 | |
| Financial planner bodycount at Westpac is 22 in the last 6 years | |
| Westpac chief executive, Brian Hartzer, said that in the last six years 22 financial planners have been referred to Asic and all of them are no longer at the bank after being sacked or resigning. | |
| Hartzer said the bank audits all the files of planners referred to Asic, notifies all their clients and makes redress where appropriate. | |
| 3.54am BST | |
| 03:54 | |
| The Westpac chief executive says mortgages that track cash rate moves “appear attractive” and nothing stops them being offered. But rate-tracker mortgages are “fraught with risk” when the cost of funds spikes and a bank is not allowed to reprice its interest rates. | |
| Quizzed as to why banks in other markets offer them but not Australia, Hartzer says that other markets like the UK have deeper domestic capital markets and rely less on global funds to provide mortgages. | |
| 3.43am BST | 3.43am BST |
| 03:43 | 03:43 |
| Westpac chief executive, Brian Hartzer, tells the committee it wrote submissions to the Productivity Commission in favour of data portability to enhance competition. | Westpac chief executive, Brian Hartzer, tells the committee it wrote submissions to the Productivity Commission in favour of data portability to enhance competition. |
| He declines to take a free kick offered to him by David Coleman about why the other big four banks resisted the idea. | He declines to take a free kick offered to him by David Coleman about why the other big four banks resisted the idea. |
| 3.41am BST | 3.41am BST |
| 03:41 | 03:41 |
| What are the odds? | What are the odds? |
| .@Westpac CFO Peter King having a rough start before House Economics Committee. He's shown up wearing the same tie as chair @DavidColemanMP. | .@Westpac CFO Peter King having a rough start before House Economics Committee. He's shown up wearing the same tie as chair @DavidColemanMP. |
| Who wore it best? House Economics Committee chair David Coleman and Westpac CFO Peter King. #auspol pic.twitter.com/5yGovU8Jas | |
| Updated | |
| at 4.04am BST | |
| 3.38am BST | 3.38am BST |
| 03:38 | 03:38 |
| Committee chairman David Coleman said Westpac subsidiary Capital Finance Australia was required to pay $500,000 for breaches of consumer credit protection law. The financier failed to send out warning letters about repossession of cars. | Committee chairman David Coleman said Westpac subsidiary Capital Finance Australia was required to pay $500,000 for breaches of consumer credit protection law. The financier failed to send out warning letters about repossession of cars. |
| It appears we’ve hit our first operational error. Westpac chief executive Brian Hartzer said: | It appears we’ve hit our first operational error. Westpac chief executive Brian Hartzer said: |
| That was purely and simply an operational error ... there was a break down in the collections practices of a business we acquired. | That was purely and simply an operational error ... there was a break down in the collections practices of a business we acquired. |
| There have been consequences, the chief executive of that business is no longer with us. | There have been consequences, the chief executive of that business is no longer with us. |
| Updated | Updated |
| at 3.39am BST | at 3.39am BST |
| 3.33am BST | 3.33am BST |
| 03:33 | 03:33 |
| Westpac chief executive Brian Hartzer has explained a refund it gave for charging customers a life insurance premium on a policy that was purchased at the same time as a loan. | Westpac chief executive Brian Hartzer has explained a refund it gave for charging customers a life insurance premium on a policy that was purchased at the same time as a loan. |
| Hartzer said consumers had continued to get the benefit of the policies, but there was “a potential for confusion” about whether premiums would continue after the loan had been paid back. The bank agreed to a refund. | Hartzer said consumers had continued to get the benefit of the policies, but there was “a potential for confusion” about whether premiums would continue after the loan had been paid back. The bank agreed to a refund. |
| 3.26am BST | 3.26am BST |
| 03:26 | 03:26 |
| Westpac boss apologises for "operational errors" and "trust gap" | Westpac boss apologises for "operational errors" and "trust gap" |
| Westpac boss, Brian Hartzer, and the chief financial officer, Peter King are up now. | Westpac boss, Brian Hartzer, and the chief financial officer, Peter King are up now. |
| Hartzer’s opening statement notes that banks worldwide have to hold more capital, and he therefore blames global conditions for the price of its loans. | Hartzer’s opening statement notes that banks worldwide have to hold more capital, and he therefore blames global conditions for the price of its loans. |
| Westpac’s return on investment has fallen “significantly” from more than 20% to 14%, he said. Profits are not “excessive” but banks need “strong balance sheets” when parts of the economy get in trouble, he said. | Westpac’s return on investment has fallen “significantly” from more than 20% to 14%, he said. Profits are not “excessive” but banks need “strong balance sheets” when parts of the economy get in trouble, he said. |
| Because of a “trust gap” that had opened up between the community and banks, Hartzer apologises for “operational errors”. He tables a document he says shows Westpac weeded out two planners then banned by Asic. | Because of a “trust gap” that had opened up between the community and banks, Hartzer apologises for “operational errors”. He tables a document he says shows Westpac weeded out two planners then banned by Asic. |
| The chief executive boasts Westpac was the first to remove sales as a component of base pay, and has shifted metrics for tellers’ performance towards service rather than sales. | The chief executive boasts Westpac was the first to remove sales as a component of base pay, and has shifted metrics for tellers’ performance towards service rather than sales. |
| 3.18am BST | 3.18am BST |
| 03:18 | 03:18 |
| Labor’s Matt Thistlethwaite has been on Sky News and argued it was inappropriate for NAB to buy data from credit reporting company VEDA about when its customers approached other banks for a loan. | Labor’s Matt Thistlethwaite has been on Sky News and argued it was inappropriate for NAB to buy data from credit reporting company VEDA about when its customers approached other banks for a loan. |
| Something I didn’t appreciate from this morning’s hearings is that this was more extensive than NAB simply looking at its own data to recommend products to its customers. | Something I didn’t appreciate from this morning’s hearings is that this was more extensive than NAB simply looking at its own data to recommend products to its customers. |
| In response to questions this morning NAB chief executive, Andrew Thorburn, said the bank would “cease immediately” if a customer indicated they did not consent to up-selling of that nature. | In response to questions this morning NAB chief executive, Andrew Thorburn, said the bank would “cease immediately” if a customer indicated they did not consent to up-selling of that nature. |
| Updated | |
| at 4.12am BST | |
| 2.54am BST | 2.54am BST |
| 02:54 | 02:54 |
| NAB chief executive has rougher ride on accountability questions | NAB chief executive has rougher ride on accountability questions |
| After the third day of hearings it’s become apparent the committee has sharpened its questions about banks’ failure to stamp out misconduct. | After the third day of hearings it’s become apparent the committee has sharpened its questions about banks’ failure to stamp out misconduct. |
| The NAB’s chief executive, Andrew Thorburn, has answered no less satisfactorily than his CBA and ANZ counterparts on Tuesday and Wednesday but has faced a slightly tougher grilling. | The NAB’s chief executive, Andrew Thorburn, has answered no less satisfactorily than his CBA and ANZ counterparts on Tuesday and Wednesday but has faced a slightly tougher grilling. |
| What we’ve learned this morning: | What we’ve learned this morning: |
| Updated | Updated |
| at 3.02am BST | at 3.02am BST |
| 2.34am BST | 2.34am BST |
| 02:34 | 02:34 |
| That concludes NAB’s evidence. | That concludes NAB’s evidence. |
| Liberal chairman of the House of Representatives standing committee on economics, David Coleman, has suspended the hearing until 1.15pm AEDT when Westpac execs will give evidence. | Liberal chairman of the House of Representatives standing committee on economics, David Coleman, has suspended the hearing until 1.15pm AEDT when Westpac execs will give evidence. |
| Stay with us as we summarise this morning’s hearing and scoop up further reaction. | Stay with us as we summarise this morning’s hearing and scoop up further reaction. |
| Updated | Updated |
| at 2.57am BST | at 2.57am BST |
| 2.29am BST | 2.29am BST |
| 02:29 | 02:29 |
| The deputy chairman, Matt Thistlethwaite, has asked about Asic action against NAB over alleged manipulation of the bank bill swap rate and why the bank hasn’t accepted liability and enforceable undertakings. | The deputy chairman, Matt Thistlethwaite, has asked about Asic action against NAB over alleged manipulation of the bank bill swap rate and why the bank hasn’t accepted liability and enforceable undertakings. |
| NAB’s chief executive, Andrew Thorburn, said the bank had reviewed what happened and rejects Asic’s allegation. | NAB’s chief executive, Andrew Thorburn, said the bank had reviewed what happened and rejects Asic’s allegation. |
| We have a disagreement with Asic and now it’s going through legal proceedings to resolve it. | We have a disagreement with Asic and now it’s going through legal proceedings to resolve it. |
| Updated | Updated |
| at 2.57am BST | at 2.57am BST |
| 2.24am BST | 2.24am BST |
| 02:24 | 02:24 |
| The opposition leader, Bill Shorten, has weighed into the bank hearings at a press conference in Broadmeadows. | The opposition leader, Bill Shorten, has weighed into the bank hearings at a press conference in Broadmeadows. |
| He said the chief executives are offering “ritual” apologies but want to return to “business as usual”: | He said the chief executives are offering “ritual” apologies but want to return to “business as usual”: |
| I think it’s pretty telling. Malcolm Turnbull and the big four banks want at the end of this week to go back to business as usual ... | I think it’s pretty telling. Malcolm Turnbull and the big four banks want at the end of this week to go back to business as usual ... |
| If all of these bank see CEOs keep saying we stuffed up, we got it wrong, we have caused problems for our customers, haven’t they just made the final argument in favour of a banking royal commission? | If all of these bank see CEOs keep saying we stuffed up, we got it wrong, we have caused problems for our customers, haven’t they just made the final argument in favour of a banking royal commission? |
| Sorry doesn’t cut it. Nothing less than a royal commission cuts it. Malcolm Turnbull’s got to stop protecting the banks. Listen to the people of Australia, Malcolm, give the people of Australia what they want, which is a royal commission to improve our banking sector. | Sorry doesn’t cut it. Nothing less than a royal commission cuts it. Malcolm Turnbull’s got to stop protecting the banks. Listen to the people of Australia, Malcolm, give the people of Australia what they want, which is a royal commission to improve our banking sector. |
| Updated | Updated |
| at 2.56am BST | at 2.56am BST |
| 2.18am BST | 2.18am BST |
| 02:18 | 02:18 |
| The Finance Sector Union’s acting national secretary, Geoff Derrick, notes that three of the four major banks so far have backed the backbench MP proposal for a banking tribunal: | The Finance Sector Union’s acting national secretary, Geoff Derrick, notes that three of the four major banks so far have backed the backbench MP proposal for a banking tribunal: |
| Another CEO welcomes LNP alternative to #BankRC but can a consumer disputes tribunal deal with systemic/cultural issues? #questionsforbanks | Another CEO welcomes LNP alternative to #BankRC but can a consumer disputes tribunal deal with systemic/cultural issues? #questionsforbanks |
| Updated | Updated |
| at 2.55am BST | at 2.55am BST |
| 2.13am BST | 2.13am BST |
| 02:13 | 02:13 |
| Andrew Thorburn is crowing that just 700 complaints about NAB went to the financial ombudsman last year, down 64%. | Andrew Thorburn is crowing that just 700 complaints about NAB went to the financial ombudsman last year, down 64%. |
| He accepts that it is difficult for small businesses to go to the supreme court to litigate disputes, and again suggests NAB is open to a simpler process: | He accepts that it is difficult for small businesses to go to the supreme court to litigate disputes, and again suggests NAB is open to a simpler process: |
| We would welcome with government and other parties to enhance that process. | We would welcome with government and other parties to enhance that process. |
| Updated | Updated |
| at 2.53am BST | at 2.53am BST |