Bob Katter this week introduced a parliamentary bill to reform the banking system.

After some of the misconduct exposed by the royal commission into the sector, Katter wants to safeguard customers from wrongdoing by separating retail commercial banking from wholesale and investment banking.  

The regime would be based on America’s Glass-Steagall bill which effectively evaded economic collapse.

Caller Don was interested in Katter's intentions for the banking sector, so Luke Grant called on the member for Kennedy to offer up an explanation.  

“The Depression hit at the end of 1929. At the end of 1932, Congressman Glass and Congressman Steegle moved this bill,” Katter explains.

 “It was to reform and restrict the banks from the outrageous behaviour that precipitated the Great Depression. From then on the banks could not act in the most irresponsible manner possible. They were restricted and they had to act responsibly by law. We did not have an economic collapse until Bill Clinton abolished the act. We were then back to the bad old days.”

 Katter believes implementing similar regulations here would protect vulnerable customers from financial misfortune.

“You don’t go into the market place as an investor owning assets, you lend the money, that is your expertise, that’s where you stay and you stay out of the other areas.”

Bob Katter this week introduced a parliamentary bill to reform the banking system.
After some of the misconduct exposed by the royal commission into the sector, Katter wants to safeguard customers from wrongdoing by separating retail commercial banking from wholesale and investment banking.&nbsp;&nbsp;
The regime would be based on America&rsquo;s&nbsp;Glass-Steagall bill&nbsp;which effectively evaded economic collapse.
Caller Don was interested in Katter's intentions for the banking sector, so Luke Grant called on the member for Kennedy to offer up an explanation.&nbsp;&nbsp;
&ldquo;The Depression hit at the end of 1929. At the end of 1932, Congressman Glass and Congressman Steegle moved this bill,&rdquo; Katter explains.
&nbsp;&ldquo;It was to reform and restrict the banks from the outrageous behaviour that precipitated the Great Depression. From then on the banks could not act in the most irresponsible manner possible. They were restricted and they had to act responsibly by law. We did not have an economic collapse until Bill Clinton abolished the act. We were then back to the bad old days.&rdquo;
&nbsp;Katter believes implementing similar regulations here would protect vulnerable customers from financial misfortune.
&ldquo;You don&rsquo;t go into the market place as an investor owning assets, you lend the money, that is your expertise, that&rsquo;s where you stay and you stay out of the other areas.&rdquo;

A fast-paced show, focusing on current events, social issues, sport and entertainment.

A fast-paced show, focusing on current events, social issues, sport and entertainment.

Advertisement