Aptly named Commonwealth Bank subsidiary Storm Financial managed to sink $3 billion of investors’ money by channelling home & margin loans (to buy shares) and other investment products from Big Banks to unsophisticated investors often unable to support the debts.
CBA’s Chief Executive has admitted that his bank has lots of explaining to do, and in serious damage-control accepted a formal mediation scheme to resolve a queue of consumer claims.
ANZ’s former CEO in charge during the Opes Prime version of the above admitted this week to no such failings. Naturally he couldn’t be aware of all minor financial dealings, even when his bank was exposed to the bagatelle of $600m.
Meanwhile remuneration experts report that last year average total pay for chief executives of Australian companies increased 20%, while sharemarkets fell 40%.
Add the insult of token executive pay freezes, but watch out for the rapid defrost, as bonuses & incentives get ramped up.