CEO talking points ahoy
The upcoming hearings of the economics committee of the House of Representatives with big bank CEOs is generating a flurry of backgrounding, to arm banks and questioners with material for a ritual examination.The federal government looks likely to drop one big item early this week, with the release of ASIC's long-finished review into commissions on brokered home loans. The government has sat on this report for many weeks, no doubt aiming to exploit its contents this week.The Australian's columnist, John Durie, on Saturday, previewed the highlight as bringing a "new curb on volume-based commissions", a modest reform in comparison with the animated talk at one point last year of an outright ban on commissions.A second shot from the government may be the outline of a new clamp on pay arrangements for the most senior bank staff.THe treasurer, Scott Morrison, is working on "a second wave of financial sector reforms, including consideration of a framework to make senior executives individually accountable for serious lapses in governance and conduct", The Australian reported, separately, on Saturday.Also in the queue is Commonwealth Bank, which this week must finally release the review from Deloitte into CommInsure that focuses on the handling of life insurance claims.CBA chief Ian Narev, speaking at the release of the bank's half year results the week before last, said the Deloitte report would "show that the underlying quality of that business is strong and vastly different to how it has been portrayed in parts of the media".The report, Narev said, "paints a good picture" and will help "correct the record" on matters first aired by ABC's Four Corners.Westpac, over the weekend, outlined plans for a new low-rate credit card "with an interest rate of under ten per cent," News Australia newspapers reported on Sunday.The product, which is some months from reaching the market, will include an instalment plan on select purchases.ANZ set the lead the weekend before last with a cut to the rate on its own (not so) low rate credit card products.Andrew Thorburn, managing director of National Australia Bank - who is also chair of the Australian Bankers Association, will be the first CEO to appear before the committee, on Friday morning in Canberra.The three other major bank CEOs, and also the ABA CEO, will appear next Monday and Tuesday.