Summary

Edit

The majority voted against a motion introduced by Senator Pauline Hanson (QLD) that addressed the issue of conflicts of interest in the banking sector, which means it failed.

Motion text

That the Senate:

(a) notes that:

(i) trust in banks is essential to the economy,

(ii) trust in the banks has been undermined by adverse findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry,

(iii) misconduct related to poor standards of mortgage lending affects all Australians and risks financial instability,

(iv) concentration on mortgage lending makes the economy vulnerable to a downturn in the housing market,

(v) reliance on overseas debt markets for short-term borrowing by the major banks, and contagion from overseas counterparties through trillions of dollars of derivatives related to mortgages, pose serious systemic risk,

(vi) misconduct related to financial advice, small business lending, superannuation and insurance shows that the business model of major banks is based on exploitation rather than customer service,

(vii) the integrated structure of banks facilitates misconduct due to the lack of transparency when traditional commercial banking is linked with investment banking, financial advice, wealth management, stockbroking, superannuation and insurance businesses,

(viii) the integrated structure creates a conflict of interests because the lack of transparency enables banks to extract profits through cross-subsidies of various activities, and the indirect cost to retail superannuation members runs to many billions per year,

(ix) the enormous profits extracted through the integrated structure entrenches the major banks as an effective cartel, preventing market competition and increasing concentration, and

(x) the integrated structure puts bank deposits at risk as collateral for major banks' speculation in mortgage-backed securities and derivatives – this puts the real productive economy at unnecessary risk; and

(b) calls on the Federal Government to reduce the conflicts of interests by legislating the structural separation of the banking system, where traditional commercial banking of taking deposits and making loans is separated from investment banking and all other financial services, including financial advice, wealth management, superannuation, stockbroking and insurance.

Votes Not passed by a modest majority

Nobody rebelled against their party.

Party Votes
Cory Bernardi SA Australian Conservatives Absent
Australian Greens (89% turnout) 8 Yes 0 No
Richard Di Natale Victoria Yes
Mehreen Faruqi NSW Yes
Sarah Hanson-Young SA Yes
Nick McKim Tasmania Yes
Janet Rice Victoria Yes
Rachel Siewert WA Yes
Larissa Waters Queensland Yes
Peter Whish-Wilson Tasmania Yes
Jordon Steele-John WA Absent
Australian Labor Party (52% turnout) 0 Yes 13 No
Catryna Bilyk Tasmania No
Anthony Chisholm Queensland No
Jacinta Collins Victoria No
Alex Gallacher SA No
Kristina Keneally NSW No
Gavin Marshall Victoria No
Deborah O'Neill NSW No
Louise Pratt WA No
Lisa Singh Tasmania No
David Smith ACT No
Glenn Sterle WA No
Anne Urquhart Tasmania No
Murray Watt Queensland No
Carol Brown Tasmania Absent
Doug Cameron NSW Absent
Kim Carr Victoria Absent
Patrick Dodson WA Absent
Don Farrell SA Absent
Chris Ketter Queensland Absent
Kimberley Kitching Victoria Absent
Jenny McAllister NSW Absent
Malarndirri McCarthy NT Absent
Claire Moore Queensland Absent
Helen Polley Tasmania Absent
Penny Wong SA Absent
Centre Alliance (100% turnout) 2 Yes 0 No
Stirling Griff SA Yes
Rex Patrick SA Yes
Nigel Scullion NT Country Liberal Party No
Derryn Hinch Victoria Derryn Hinch's Justice Party No
Sue Lines WA Deputy President Absent
Tim Storer SA Independent Yes
Lucy Gichuhi SA Independent Absent
Steve Martin Tasmania Independent Absent
Fraser Anning Queensland Katter's Australian Party Yes
David Leyonhjelm NSW Liberal Democratic Party No
Liberal National Party (50% turnout) 0 Yes 1 No
James McGrath Queensland No
Matthew Canavan Queensland Absent
Liberal Party (55% turnout) 0 Yes 12 No
Simon Birmingham SA No
Slade Brockman WA No
David Bushby Tasmania No
Richard Colbeck Tasmania No
Jonathon Duniam Tasmania No
Concetta Fierravanti-Wells NSW No
Mitch Fifield Victoria No
Jane Hume Victoria No
Jim Molan NSW No
James Paterson Victoria No
Linda Reynolds WA No
Amanda Stoker Queensland No
Eric Abetz Tasmania Absent
Michaelia Cash WA Absent
Mathias Cormann WA Absent
David Fawcett SA Absent
Ian Macdonald Queensland Absent
Marise Payne NSW Absent
Anne Ruston SA Absent
Zed Seselja ACT Absent
Arthur Sinodinos NSW Absent
Dean Smith WA Absent
National Party (67% turnout) 1 Yes 1 No
Barry O'Sullivan Queensland Yes
John Williams NSW No
Bridget McKenzie Victoria Absent
Pauline Hanson's One Nation Party (100% turnout) 2 Yes 0 No
Peter Georgiou WA Yes
Pauline Hanson Queensland Yes
Scott Ryan Victoria President No
Brian Burston NSW United Australia Party Absent
Totals (61% turnout) 15 Yes – 31 No