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MPs grill the nation's bank chiefs

AAP logoAAP 4/10/2016

MPs GRILL ANZ BANK BOSS SHAYNE ELLIOTT

WHAT WE LEARNED

* ANZ has a 16 per cent share of an open and competitive market in Australia.

* While the bank's profit is large - at about $7 billion - it is less than one per cent of the $900 billion in assets that it holds.

* While the RBA cash rate is an important ingredient in setting home loan and business rates, it is not the only ingredient.

* ANZ made a mistake of "reasonable magnitude" when 1400 customers were affected by breaches in its wealth management business.

* The bank did not lend directly to people who invested in failed managed investment scheme Timbercorp, nor did it advise them to do so.

WHAT WE DIDN'T LEARN

* Whether any staff got the sack for individual culpability within the bank's wealth management business.

THE TOUGH QUESTIONS

* Four times since 2015 you have been forced forced to compensate 400,000 customers around $29 million for charging fees that you weren't entitled to. That suggests an internal culture which is at best negligent and at worst deliberately structured.

WHAT ELLIOTT SAID

"That was a mistake, it was a mistake made in the programming, the algorithm, if you will, of doing that." - On overcharged fees.

WHAT MPs SAID

"That is a farcical situation and suggests that you completely dropped the ball in looking after your customers in that business." - House of Representatives economics committee chairman David Coleman says of ANZ's wealth management arm.

TWEETED

@SwannyQLD: "Banks claim regulating profit 'dangerous' so I assume they will ask the government to remove their deposit guarantee."

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