$100m spend to tell us what we know

IF THE government does go – either directly as a consequence of losing Bennelong or after the next general election, if it somehow manages to stumble on – we will get a royal commission into the banks.

That’s unless we get it anyway, either because of National Party rebels joining with Labor and the Greens (the favoured possibility), or because Treasurer Scott Morrison himself grabs desperately for one last political, death-defying, populist vote-winner.

But what exactly is an RC, costing $100 million, supposed to uncover and even more to achieve?

What is it going to tell us that we don’t already know – or think we know – about banks?

That they borrow at X per cent and lend the money back to us at X per cent plus a margin?

That they, surprisingly, ask us to pay for bank services?

That sometimes those services ain’t that “serviceable”?

That there have been

examples – yes, arguably even too many examples – of them being unfair, or worse, to customers, putting them into bad products, overcharging them, inappropriately confiscating mortgaged properties and so on.

But does anyone – other

than at the loopy ends of the spectrum – really believe there is some vast unexposed conspiracy waiting to be revealed?

Or vast piles of your money being hoarded in secret bank vaults?

That as a consequence of “finding out”, we’ll be able to wave a magic regulatory wand and you’ll all get higher interest rates on your deposits, lower rates on your home loans, the advice on your super will come free and perfect, those investments will always make money, no one will ever have an insurance claim rejected and the cost of policies will plummet?

And, by the bye, bank shares will continue to soar in value and pay super-high dividends so your superannuation balances won’t be shredded.

Apart from anything else, you have to have a great deal of faith in the wisdom and outcomes of RCs and other inquiries.

What exactly did all those other inquiries – along with all the regulators and regulations they spewed out – do for you?

Indeed, if inquiries and regulations are so great, why do we need yet another one?

There’s also a very big ghost hovering behind the banks – Bitcoin or Blockchain or so-called “fintech”.

Just maybe an RC into the banks will actually be an RC into the past.

❝But does anyone – other than at the loopy ends of the spectrum – really believe there is some vast unexposed conspiracy waiting to be revealed?