Scott Morrison was the last frontier before the banking royal commission, sources reveal 
New Daily Jan 23 2019

Scott Morrison was the “last holdout” against calling a royal commission into the big banks, according to insiders in the inner sanctum of Malcolm Turnbull’s economic team.

As the Prime Minister prepares to craft the government’s response to the final report of the Hayne Royal Commission, Liberals have warned Mr Morrison’s deep opposition to the royal commission is a ticking time bomb for him.

Senior government figures have confirmed the former prime minister Malcolm Turnbull was first to move, incensed the government looked “ridiculous” when they were the last ones defending the big banks when even they had accepted the inevitability of the inquiry.

“His view was, ‘Why are we the only people out there defending the banks when even the banks accepted the need for a royal commission?’,” a government source said of Mr Turnbull’s attitude.

“I can guarantee you that Scott Morrison was the last holdout.”

In private talks with the economic team, Mr Morrison warned against the establishment of the inquiry. He spoke of the “reputational damage” to the government, given Labor had months of quotes from senior government figures, including himself, decrying the idea as a waste of money.

Sources close to Mr Morrison insist that his warnings of “reputational damage” are accurate, but insist others in cabinet remained opposed to the royal commission plan, even after he backflipped and took the position to cabinet.

Mr Morrison was highly exposed because he had described the royal commission as “a stunt”, “hot air” and a move that would undermine confidence in the financial system.

When he finally announced a royal commission in November 2017, he described it as “regrettable but necessary”.
Morrison, Turnbull, Cormann and O’Dwyer: Sources have revealed it was today’s Prime Minister who put up the final fight against a banking royal commission.
The timeline to a commission

The senior economic team of the Turnbull government – including Mr Turnbull, Mr Morrison, finance minister Mathias Cormann and assistant treasurer Kelly O’Dwyer – spent months discussing how to resolve mounting pressure from Coalition MPs to call a royal commission outside of discussions in cabinet.

Government sources say Ms O’Dwyer was first to accept the need for some form of inquiry with the finance minister ultimately accepting the need for a circuit breaker.

But other ministers disputed this.

“Bulls–t. It was imposed on them by the prime minister,” a Liberal minister said.

The government’s backflip on a royal commission was ultimately informed by the threat of backbenchers, including Nationals MP George Christensen, to cross the floor.

On November 20, 2017, Mr Christensen formally advised the government he would vote with Labor. The government had struggled for months with how to respond to Labor’s calls for a royal commission, including considering alternatives such as boosting the powers of ASIC.

Just 10 days later, the big four banks finally caved to the political pressure and agreed to support a royal commission.

They feared Parliament would set the terms of reference, which could prove even more damaging, unless the Turnbull government seized control of the process.

On November 30, 2017, then-PM Turnbull and Mr Morrison announced the royal commission, arguing the ongoing uncertainty was harming confidence in the banking system and the economy.

“Only the government can ensure that a royal commission is created, established with respected and capable commissioners,” Mr Turnbull said.

“This will not be an open-ended commission. This will not put capitalism on trial, as some people in Parliament prefer, and we give it a reporting date of 12 months.”

The backflip only came after Mr Morrison received a letter signed by the chairpersons and CEOs of ANZ, Commonwealth, NAB and Westpac, arguing an inquiry was necessary to restore faith in the system.

“Our banks have consistently argued the view that further inquiries into the sector are unwarranted,” the letter stated.

“However, it is now in the national interest for the uncertainty to end.”

Underlining Mr Morrison’s bitter opposition, he argued the royal commission was “regrettable”.

“The nature of political events means the national economic interest is now served by taking what I describe as a regrettable but necessary action,” Mr Morrison said.

At the time, rebel MPs including Mr Christensen said it was a pity the government had to “drag the prime minister kicking and screaming to this decision”.   

Yes we did get a banking royal commission at long last.  However because of the coalition government, it took till five to midnight before we got one.   

And they also cut the RC short so the banks could go back to their bad lending habits again and scumo could pump up the property bubble to keep his fake economy on life support

Heard the other day that the honest banks are signing up 70 yo's to 30 year loans. Bad habits die hard and not one has got their collar felt and gone to jail

Poor Lefties just can't get excited by these RC's.

Wonder how they will take the bush fire RC which will recommend de-registering the Greenies ?