Banks hurting the PM

THE Turnbull Government is staying alive in the polls but the issue of our badly behaved financial sector is likely putting them through a waking nightmare.

Each day the banking royal commission dredges up new grim revelations of the conduct of banks and the financial services industry.

This presents three problems for the Turnbull Government.

Firstly, this important investigation was not their idea — in fact it was Labor’s. And despite the PM previously saying “it will not tell us anything new” that is exactly what it is doing daily.

Secondly, the PM resisted reading the writing on the wall until he faced losing the numbers as his own backbenchers joined the push for the royal commission.

And thirdly, the daily dodgy revelations are occurring as we count down the days to the federal Budget — a blueprint in which Treasurer Scott Morrison wants to include tax cuts for corporations.

Political outsiders who like to throw grenades are sensing a populist wave and publicly opposing such measures.

Race-baiting renegade Pauline Hanson, who is reported today as criticising local federal MPs Richard Marles and Sarah Henderson as “part of the same champagne set”, wants the savings of any corporate tax cuts that go to the banks taken off them.

This would be an unwieldy process. But the moral anger underneath it will echo with a lot of Australians.

If the Federal Government is banking on things cooling down at the royal commission, they may not want to hold their breath.

Westpac’s share price took a nosedive yesterday as the poor quality, high risk and bad processing of its home loans was revealed.

Also yesterday, the head of one of the nation’s 10 largest financial planning outfits was grilled on the stand as to whether he was giving misleading answers.

He collapsed and had to leave the banking inquiry on a gurney and then an ambulance.