Does Anna Bligh have what it takes to stop a royal commission into the banks?
The appointment of former Queensland premier Anna Bligh as the new head of the powerful bank lobby group the Australian Bankers Association (ABA) is a masterstroke by the banks.
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We need a royal commission: Adele Ferguson
Adele Ferguson delivered an impassioned plea for a royal commission into the financial services sector, greater protection for whistleblowers and a renewed commitment to press freedom in Australia.
Instead of hand-picking a troglodyte, an ex-judge or someone with a strong banking pedigree, they have instead gone for a high profile, powerful, non-banker with strong political links - particularly in the Labor Party - and above all credibility.
Taking the job means she has taken the stance that a royal commission into the banks isn't necessary and she will do what she can to take it off the agenda.
That means trying to convince the federal Labor Party and some key crossbenchers that the current myriad inquiries are enough.
This undoubtedly played a big role in her appointment, particularly if Labor wins the next election.
Scandals shared
The banks, to varying degrees, have had their fair share of scandals, including alleged rigging of the bank bill swap rates, financial planning misconduct, wrongdoing in the life insurance industry, widespread charging customers fees for services they never received and the inherent conflicts that come with a vertically integrated model.
Despite the litany of scandals, the banks haven't done a good job of convincing customers they are sorry.
A few mea culpas have been made, though those were qualified by declarations that the misbehaviour was down to a few bad apples, rather than something systemic.
They have made sweeping statements about treating their customers better and making them a focus, but it has had little or no cut through.
It is why the appointment of Bligh is a smart move. She is dynamic and passionate and will deliver the messages a lot better than the four bosses of the banks.
Where she will need to be careful though is not to swallow the hype of her masters.
Bligh is dynamic and passionate and will deliver the messages a lot better than the four bosses of the banks
If she is to be taken seriously she needs to genuinely question some of the reforms that her job will require her to defend. If they end up being a whitewash designed to make headlines with little substance, she will damage her credibility.
Customers let down
There is no question that the banks have let down some of their customers by focussing purely on profit.
Some haven't treated whistleblowers too well either and it came back to bite them. Their remuneration, the dumbing down of financial advice with low education requirements and attempts to dilute the future of financial advise reforms, hasn't helped.
Bligh is a strong believer that more can be done inside the tent than outside. That may well be the case.
But when there are different competing interests in the tent, some more powerful than others, the best of intentions can be diluted. It is then that change is more effective from outside the tent.
If she is to help rebuild trust in the banking sector she will need to demonstrate that the reforms they propose are genuine and not token.
If she can't pull it off, she will damage her reputation – but she would well know that.
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