Auditing The Banks
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- čas přidán 23. 07. 2024
- I discuss the issues around bank audits with Robbie Barwick from the CEC who have just called for an independent audit of the big four on the back of a recent UK report.
cecaust.com.au/releases/2019_0...
The Full Report: visar.csustan.edu/aaba/LabourP...
cecaust.com.au/
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Caveat Emptor! Note: this is NOT financial or property advice!!
[Apologies for the poor line quality from Robbie in places]
Australian banks don't know how to bank. Why did they retreat from Asia? Because they don't know how to correctly asses risk and provide the services at a competitive rate. The reason why Australian banks are so heavily concentrated in the Australian mortgage market is because it's easy and "safe" money. They fired people that knew how to make a bank competitive and replaced them with residential mortgage lending computers. I'm truly beginning to worry about the state of Australia as I do my own research into the state of our banks and economy.
I live down the south coast. This may have made a delay in newspapers reports, but I cannot ever remember when neither the Herald or Telegraph did not publish the house sale/no sale listing in their Sunday newspapaers.......why?
The "Rothschild owned Reserve Banks" are the real criminals who are controlling nations. The "Big Four" don't print/create (fiat currency) for nothing. They are the "fall guys" in this giant criminal banking mafia. The Reserve Bank is the head of the snake and must be abolished, giving back the creation of currency to the government.
I would have to disagree with Robert on a couple of his comments. When he said, 10:21 “Tax evasion infrastructure globally is such a debilitating system that national governments have to contend with. It undercuts revenues by a huge amount. ” The words “have to contend with” infers the oligarch-owned governments are working for the people. Doesn’t Robert remember the scam of attempting to debilitate the Banking inquiry by Morrison, Frydenberg, and O’Dwyer? Now, for whose interests do you think these individuals are working? I’ll give you a hint; it’s not yours.
I would also have to disagree with Robert on his comment, 23:35 “Well, their UK counterparts (Labour) have just commissioned this very potent report; what will the Australian Labor Party do?” I have to disagree with the word “Counterpart” when comparing the Australian Labor Party and the British Labour Party as it infers some form of equivalence. I haven’t seen Billy get smeared in the local rags like Corbyn has in Britain. Billy hasn’t been accused of being anti-Semitic; Billy hasn’t been smeared as a Putin puppet or a foreign agent, and Billy hasn’t been accused of being a Czech spy. You can tell those who intend to work for the people by the amount of flack thrown at them by the oligarchs’ propagandistic media. Sorry folks, just like Morrison and Frydenberg, Billy also appears to be working for the oligarchs. You also get a hint of this when you hear Murdoch say he can work with Shorten just after Murdoch removed Turnbull from office.
So, don’t think you can escape this oligarchical cabal of minions and puppets in Canberra by voting Labor. Just have a look at the CEO (Anna Bligh) of the Australian Bankers Association. Yes, this scam is not only limited to federal politics and it is not only limited to party. By now you must have realized you have just as much opportunity voting for the interests of the people and against the interests of the banks as you have voting against Anglo-American Imperial Foreign Policy. You have to wonder if France's Yellow Jackets have the right idea.
United Australia is the word this time around I think.Second by Hanson's party
@@zarkoristov5585 : Sorry, I can see no credible political parties in Australia who have any hope of taking power; Palmer had Russ Hinze as a mentor and would sell out the Australian people for a profit, and Hanson's party is full of fools and has been infiltrated by Libertarians. And don't get me started on libertarians; they are the covert puppets and minions of the Anglo-American oligarchs. If you want to understand why, just read the Intercept article by Lee Fang: theintercept.com/2017/08/09/atlas-network-alejandro-chafuen-libertarian-think-tank-latin-america-brazil/
And if you wish to understand how the Atlas Network has infiltrated Australia, just look at the “Global Partners” of the Atlas Network in Australia: www.atlasnetwork.org/partners/global-directory/australia-and-new-zealand
If you wish to understand the Libertarian scam in detail, just read Duke University history professor Nancy MacLean’s book "Democracy in Chains”. She lays out the strategy of Libertarian economist Buchanan and the US oligarchs in detail.
@@animalfarm7467 I have read many opinions in my life time but we still kneed a goverment.
What would you like to see happen.??it's easy to say that none of them are good but you have to have a new direction and stance.!!
@@zarkoristov5585 : Yes, we still need a government but all I am saying is most options are contaminated. So instead of just hoping that something might rise from the ashes, learn from history so you can detect oncoming treachery before it takes power. The only political movement I find credible is the Citizens Electoral Council but their chances of taking power are minuscule. They do however, have influential power in Canberra and have done some excellent work exposing scams by the oligarchs in Australia. What is needed is a purging and the refreshment of this compromised democratic process. I believe the quote from the corrupt US politician Boss Tweed must be committed to memory, “I don't care who does the electing, so long as I get to do the nominating”.
The oligarchs thrive when the people are ignorant and apathetic. What is needed is a new political movement that can take out the trash. In the US, the Justice Democrats have started a movement from which arose a candidate who actually intends to work for the people. Alexandria Ocasio-Cortez is a breath of fresh air in a land of criminals and traitors and is making progress in Congress. Sadly, she may just be a candle burning in a tornado and many are concerned for her safety, but she has given many people hope; and I’m not talking about the fake “Hope and Change” of Obama. Currently in Australian politics, there is no place for honorable politicians. For example, Tony Windsor’s family appeared to have been threatened by National Party interests to ensure a win for the corrupt manipulative fool Barnaby Joyce. While this is allowed to happen; while the majority allow partisan ideology to dominate principle, nothing will change. Any real change must come from the people and the conditions must be right for this to occur.
If the oligarchs want to keep the scam of democracy going to give us the illusion of freedom there is a hidden irony; they also have to allow a path for a real alternative when it presents itself. This path might be tortured with hurdles and a seemingly insurmountable obstacle course, but it has to exist to maintain the illusion of democracy. What is needed in many Western nations, who have had their democracy mostly disabled by the oligarchs, is a politician who will wear the political gauntlet. Should this alternative arise in Australian politics, it should be recognized and supported. Other than that, the Australian people are forced (Compulsory Voting) to continue giving legitimacy and “mandates” to the one-party system and its oligarchical puppets and minions in Canberra.
It is too late to do a proper audit of the Australian Banks as they are too vulnerable. If one of these banks go bust, it will be the Australian Government and Australian people that will pay a heavy price for decades to come. Standard of living will go down and it will be a rocky ride for majority. The house cleaning of the Australian Banks should have been done in 2008. Has anyone had a look at Commonwealth Banks balance sheet lately. It might look similar to Lehman Brothers before its collapse. The upcoming financial crisis will be painful for many.
As a non native English speaker, I find your videos extremely helpful for me to expand vocabulary and learn various ways of expression.
You speak better than most English language natives.
You choose a difficult topic to improve your English, if you fully understand this video then you understand more than many native English speakers.
Random comment 😂
As someone who is more comfortable slapping people with my right hand, your video helps me understand that I really need to learn to slap them with both.
I. Bet you just walk around saying "Todaaay". :)
@@AviationSports1978 LMAO!
if you withdraw any substantial amount from your Bank be prepared for a 4-5 day wait and some very intrusive questioning!
A lot of excellent points
I wouldn’t bother because the government uses the same big 4 accounting firms to audit
Robyne Burrows The expansion of the state auditor would solve many problems. Excluding accountants and lawyers from government would help as well. Plus make the big four auditors liable for any bankruptcy that fails within six months of an audit.
Being an ex auditor myself one area which the banks auditors should be looking at is the going concern concept. With reference to the Big 4 Oz banks this should mean the auditors should be taking into account the house price drops-future house price drops with ref to mortgage loan quality-losses. In Europe the Italian banks are all effectively bankrupt with a life support from the ECB. Their accounts get signed off every year, even though their potential bad debt balances will never get paid.
Excellent discussion.
Martin I have said this many times on your comments list, and you have said that you will look at it one day.
Please, please investigate the two most VITAL components of our big four banking system and the so called government support that allow them to operate with so much impunity. In, and of themselves, these two facts will severely hurt Australians more than anything else....even more so than the fog hanging over the uncertainty of our bail in laws.
1. The budgetary cap on the ADI guarantee system (which makes a complete farce of the real ability of the guarantee to function in any meaningful way)
2. The ring fenced covered bonds changes(which, since 2011, have allowed corporate and privileged investors to jump ahead of mum and dad depositors who until that fateful date always had first bite at collapsing banks prime assets)
Maybe get Adams to help you investigate those two important changes. Australians deserve to know.
CEC are doing a fantastic job but our so called watchdogs have been colonized by old hacks and the revolving door system (probably from inception). Australias' favoritized four pillars banking system is a joke and will be a tough nut to crack open to allow a good look in but at least you guys are trying.
Thanks again.
Robbie's dedication to cleaning up the system is impressive.
The public owes him thanks and appreciation to Martin for giving him a platform.
He would make a great independent MP. I wonder if he is interested?
Robbie for Prime Minister of Australia!
I don't think that the problem with banks is due to poor auditing. I think that the key problem is excessive levels of credit/debt. This happens because growing credit/debt is associated with increased bank profitability for fairly obvious reasons. Growing credit/debt is also associated with growing laxity of regulation. Professor Keen is right that the primary cause of house inflation is credit availability, a point reinforced publicly, if indirectly, recently by APRA.
To achieve change we must remain focused on the problem we most want fixed. For me that is control of credit/debt. We need to ask for reform of those organisation that are charged with controlling credit/debt. The experiment with an independent Central Bank has failed. Governments must be held responsible for the Central Bank's failures.
"Never waste a good crisis", is a motto associated with economic reform. Millions of Aussies and Kiwis are facing a very bad time ahead. People who were not interested in economic matters become interested when they are at risk of losing their home. We need to tell them why this is happening, who is to blame, (organisations not people), and what needs to be done about it.
A shame that no sort of financial literacy was a minimum requirement for people borrowing money. A huge Australian crisis looming with record debt and no money in the banks. Australians have been big spenders and their savings are not too flash. A Country in crisis who will learn a financial lesson by not learning from mistakes of Spain, Ireland, and others.
Thanks Brian.
I always enjoy reading each of your comments..well thought out and well positioned. Thanks for your continued involvement.
Best wishes
Joe Wilkes
DFA.
Joseph Wilkes Thanks Joe,
I am conscious that when it "hits the fan" as it must some day, those charged with cleaning up the mess need to be ready. Reserve Bank Governors are noted for their immense capacity for inertia. A safe pair of hands is a predictable set of hands. Those in charge claim an omniscience which appears indistinguishable from blindness. They always know what to do and it is almost always nothing. The collective response of Australian regulators to changes in the housing market is "more of the same".
The meteor is coming, the dinosaurs are feeding and ignoring the proto-mammals who are shouting "Duck! Duck!" Eventually one of the dinosaurs looks up and says "Duck?What duck?"
There should be an equal auditing on regulators
People need to be in a position to act on information by transparent banks .
Researching were you put your currency should be one of the most important people research.
Why dont people resource banks ? the deposit insurance .
Why are banks not transparent ? there is no competition .
who really knows how risky these banks are
@@davekkik2258 who cares the government will bail you out , the currency used to bail u out with less value but who cares , thats the mind set from the morel hazed of government deposit insurance.
no nz is bail in
There also needs to be an exclusion of accountants and lawyers being politicians because they are invariably doing something for their industries via creating loopholes.
I think you're throwing out the baby with the bathwater. There needs to be an exclusion of accountants and lawyers from politics if they have demonstrated nothing but a conniving collusion with exploitatory capitalists. But it is only through principled accountants and lawyers that we are getting to the bottom of tax havens. All political candidates should demonstrate a sufficient personal dedication to genuine altruistic social service before they are vetoed, regardless of their profession.
AniishAu Yes but what about those in government who have been putting loopholes into legislation? There does need to be an end to seconding accountants into government for whatever reason. Same for lawyers. These work in government for a short time and either discover loopholes while in government or put them into legalisation. I am not concerned with an outright ban if draconian punishment can be implemented if the digress. Having legislation that theoretically punishes them but is unworkable is pointless.
@@davidlazarus67 You're in a catch 22! How are you going to write legislation without loopholes if you can't liaise with accountants and lawyers who have that expertise. There are millions of trustworthy, upstanding accountants and lawyers; moral politicians could easily find them (as they have done in this video). Spineless and/or brainless puppet politicians dancing to the tune of the ultra-powerful are only too happy to employ crony accountants to dance with.
AniishAu Yes there is a dilemma there. The objective should be to eliminate loopholes and any one who plants them.
Great commentary on what is the real elephant in the room.....intergenerational, state sanctioned lack of accountability. We must demand this as a minimum acceptable starting point if we're ever to address gross inequality.
Sound money and smaller government.
Woooow! This is powerful. Robbie hit the nail right on the head. I can't wait to see what happens next. 2019 is gonna be a hell of a year!
Robbie certainly gets into the guts of things!
I always found that the auditing and consulting functions were kept at a very strict arms-length in all the companies I worked for. However, those companies had pretty good governance. This is becoming less common with corporate culture declining in the last 30 years. So the perceived risk is probably much closer to the fact these days.
One would have to review the setup of any state central audit function to protect it from both partisan and corporate capture. Not so easy to do.
Also, with the "big-4" it's somewhat difficult to comprehend just how powerful they are:
While they might not appear, on the book, to be super-large companies, they are in fact more powerful than any of them - because they have access to all the resources of the super-large companies - pretty much on-demand.
So you will be dealing with companies which are far more powerful than most countries.
And these are the outfits which recruit the absolute best and brightest of the worlds talent and intellect. You will be very hard-put to defeat them.
It might be possible with a global collaboration of nations (UK/Oz ++) .. but very iffy.
Best of luck with it!
(Edit: a better way might involve some high-visibility workwear, farm implements, basic lighting, a big block of wood and a very large axe ;)
This is the Glass-Steagall of auditing. Absolutely crucial. Have politicians become so inept that there is no learning curve whatsoever? If bankrupt institutions are given clean bills of health clearly the system needs an overhaul! Politicians are asleep at the wheel!
to remove this conflict of interest, any big4 has to practice in either auditing or consulting role, not both.
Thanks Martin, thanks Robbie. When you hear about all this going on you get a sense that those conspiracy theory people may have gotten it right.
Hope we can get that separation of banks through parliament and into law.
Sometimes the conspircy theoriests are more sane than what is actually happening. Sometimes even more tame than the truth as well.
You might well be right, friend.
Martin, when do the capital ratios get rebalanced? Surely that not be done regularly???
Great information yet again; however, hoping that the crooked banks and crooked accountants will be held to task by our crooked politicians is sadly, just hope.
The Big 4 accounting firms grab all the best and brightest accounting graduates (far more than they really need) in order to train them (ie indoctrinate them in their procedures and culture). Many of these accountants then leave the big 4 to become company and bank accountants, CFO's, government and treasury officials. They take their ties and allegiance to the Big 4 with them as well as the culture that they were exposed to.
Thank you Martin and Robbie of CEC
How much money does the big 4 auditors and big 4 banks contribute to the politicians ? Just follow the money then it all makes sense in Australia, USA elsewhere.
Can you please do a programme on bank derivatives, and the risk they pose to ordinary depositors. HH
Not sure about what the UK House of Lords passed on finance tax etc... last year with the PM MP show
Adam - Rob it’s time to wake those who were elected to govern and the people who elected them, use your platforms to open a petition that demands action and I’m sure it would get overwhelming support I’ll provide the first signature.
A question out of assumption, does the outcome for the audit show light on money laundering in Australia especially in the Real Estate market and identifies potential entities or individuals from other countries that use this route to clean their "dirty money"?
Big one pretending to be four more like.
Robbie your bravery is impressive doing this will make you a target no doubt but with enough support from the people you can expose this global corruption
External Auditors are chosen by the Board of Directors for the shareholders to ensure the financial statements of the company FAIRLY reflect the company's financial position. And the Auditors opinion statement is very important. Every business has risk! And it's the business best interests to manage the risk through internal controls and intenal audits. The Government already has the AASB. I don't want to live in a "Nanny" state like the UK. If the bank fails, then let it fail! RBA should take some responsibility.
Also, the Auditors are voted in by the shareholders so it makes sense for shareholders to vote in a big 4 accounting firm.
Let's stop supporting the big 4, take your money out and put into a credit union or mutual bank instead. They are only as strong as their customers, if we stand up their game is over.
hi Martin.
Just a question. Do the Islamic banks also do fractional lending, and are they saver or not really?
Morgan Sachs provided our Prime minister, insiders will never help drain the billabong, and WE vote them in.
Yes. Well to be more accurate, we SELECT from the list of provided 'leaders', we don't ELECT our own. The occasion should be called "The 2020 SELECTIONS", etc.
"Bankers Deadly Embrace". Sounds like 1940s film noir. Do the bankers get shot at the end? 😄
No they ride away into the sunset. They have "fall guys" who get paid well for being interrogated and for taking the heat.
sounds like the bird box economy :D
Build a jail wall for criminal bankers.
I have some cash that I don’t want bailed in & nor do I want to hide gold in my house or back yard. It is currently with a big 4 bank.
Any suggestions on a safer institution to hold it?
You can check this out, it might help think about things. I'm thinking about this myself. James Rickards | The Depression Is Over 10 Years Old. czcams.com/video/3XWHZMYued4/video.html&index=19&list=LLiRjzhRDJW-uxW5mdfZI40w
Robbie Barwick for PM!
turnbull is the love child of UN/international bankers - good radiance to Turnbull. Now no one else has balls to take on big bankers, to many drink sessions kickbacks and back handers involved.
Any one tell me why Aussie big 4 debit card get such a low daily withdrawal limit？Canada big 4 debit card I can withdrawal 3000 CAD 3 times a day in Australia lets say commonwealth only 2000AUD a day.
Labor pwrty only in name!
FTT a better tax system
I generally enjoy your videos Martin but this topic seems to be largely led by conjecture and accusations like this should be reported with enough evidence to support them. The objective of an audit is to obtain "reasonable assurance" about whether the financial report, as a whole, is free from material misstatement and produced in accordance with the applicable financial reporting framework. Nowadays, they are also required to report on an entity's capacity to continue operating as a going concern and the key risks that the entity faces.
Auditors are liable for issuing incorrect opinions if:
1. The audit is negligently performed, and
2. The plaintiff has suffered a loss,
3. The loss is a result of the auditor's negligence, and
4. A duty of care is owed to the plaintiff.
In scenarios discussed by your guest (where audited companies went into liquidation and millions in pensions were lost) the SHs or creditors would take the auditors to court.
Also, the big 4 write all the laws for the tax evasion industry?? Tax law is legislated by parliament only.
By policy, none of the big 4 provide auditing and consulting services to the same company due to the conflict of interest.
All in all, auditors are held to a high standard and held to account when they don't meet it.
Read the full UK report Reforming the Auditing Industry, which Martin has linked to, above. You'll be surprised.
@@ar30w3b33 Some research into Prem Sikka (mainly contributed with writing the report) gives me the impression that he has never actually worked in the accounting industry, despite being a professor for 23 years. He also regularly writes sensationalized articles for the guardian www.theguardian.com/profile/premsikka , all damning capitalism and the accounting industry. As someone who is somewhat knowledgeable about accounting I can tell you that I have zero confidence in this man's opinion and that this report is merely that alone.
A REAL solution to improve audit quality across the big 4 is to UPDATE AUDITING STANDARDS that auditing firms are required to follow through REGULATION.
@@jackdavies4493 Prem Sikka has led accounting investigations of financial crimes going back to BCCI and before, and has done a huge amount of work exposing the corruption inherent in the UK's network of tax havens, all of which involves active complicity from the big accounting firms. Of course he is an outsider - that's why he is willing and able to do this work; he hasn't been corrupted by the industry. He's not the only person exposing the crimes of the Big Four firms, but he's uniquely qualified to identify crimes hidden by opaque accounting methods.
Martin. Offtopic question. Do you hold any gold?
No I do not. Too hard to value in my book - in a crisis.
Documentary about the Irish Property Bubble:
czcams.com/video/3fm9HUIcnwM/video.html
Embrance?
It's a special kind of embrace🤣
My bad, I mis-typed
It happens to the blurst of us
Street slang for 'embezzler romance'
Statutory auditing makes sense. Pharmaceutical companies need to have their drugs and studies audited, as it is proven that even highly qualified medical professionals cannot be trusted to be impartial. Why is the financial system any different?
We don`t have a capitalist system as long as we have the RBA manipulating rates, simple !
Government cost is the tax it collect and the debt it incurs .
The DEBT government incurs is issued as bonds.
Privet banks use government bonds as reserves to issue credit .
The RBA lowers the cash rate to stimulate borrowing allowing privet banks to generate credit . .
Reduce the size and cost of government , restrict the power of the RBA to only issue currency as the economy need it .
Scrap government guarantees of bank deposits and make the banks be more transparent with there financial situation that will stop the moral hazed for depositors .
Unfortunately Robbie thinks more government is the answer when the issue is the government .
Sorry thumbs down on this one as I feel I must call out and its my right to call out political nonsense .
Good thinking there Damien. The system needs to flow unrestricted in order to aquire a more honest outcome. Otherwise, the system is useless.
@@amadd5641 The reward for good and fair business is more business , financial success and a good reputation for ongoing business. Government rewards bad business practice , any wonder society is losing respect for one another.
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Robbie - please get yourself a decent video camera and microphone! It`s 2019!!! Otherwise, great discussion.
Shareholders keep a close eye on the Banks
What we need is lower taxes instead of paying for all those single mothers to run wild on welfare
John Wilson Single mothers can’t ‘ run wild on welfare’. It is a below poverty level payment and it is hard to have wild parties, spend up big on luxuries and ‘ shop ‘til you drop’ when you have little money to even provide decent food for you kids ( who single mothers love and put first overwhelmingly). Forget the late nights drinking in bars - you’re up at 6 am to get the kids to school, lunches made, bags packed, clean clothes. The soapies on the lounge at night are a big miss, to busy cooking good dinner, helping with homework, getting baths done, bed early for kids. AND THEN YOU STUDY UNTIL MID-NIGHT.
Ever tried that for a decade or two. Give it a go sometime, Mr. Wilson. It may make for less ignorant, sexist comments - if it doesn’t break you.
ALWAYS EASY TO TARGET THE MOST VULNERABLE AND STIGMATISED IN THE COMMUNITY. Parroting Neo- Liberal agenda, meanwhile the real thieves are ‘ laughing all the way to the bank.
Robyn Allison
Find a man or be financially independent then. Why go cap in hand to the government because they can’t handle their responsibilities? Now we see single mothers and their bastard kids from multiple fathers choking welfare and the family court. Parasitic behaviour from wild women.
John Wilson ‘Cigarettes, whiskey and wild,wild women
They’ll drive you crazy, they’ll drive you insane’. Wilburn Bros.
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