Photo: It's grins all round as Senator Arthur Sinodinos arrives at the ICAC hearing into Australian Water Holdings. (AAP: Dan Himbrechts)
If the Government's wide-ranging inquiry into the financial system wasn't so serious, you could dismiss the whole thing as a bad joke, writes Ian Verrender.
Talk about a laugh...
Yet another key witness emerged from the ongoing theatre that is NSW's Independent Commission Against Corruption last week barely able to contain himself.
This time it was former assistant treasurer Arthur Sinodinos, who exited Cheshire cat-like from proceedings, offering to buy everyone a coffee. Well, not exactly everyone. Funds, after all, are limited on a senator's salary.
Psychologists for years have been attempting to unlock the secrets to human happiness. Judging from recent anecdotal ICAC evidence, they should examine the links between poor memory and mirth.
Still, not everyone, it seems, is unhappy about Sinodinos's predicament. As the honourable Senator desperately tried to shake off the persistent odour emanating from his time in the effluent business, it provided a welcome distraction from the furore over financial advice, commonly known as the affluent business.
Ever since Mathias Cormann took control of the portfolio - immediately suspending a decision on whether to "reform" the reforms to financial advice legislation until after the Western Australian Senate election re-run - many in the banking and financial services industries have begun to breath just a little easier.
It is not that they had difficulty breathing in Sinodinos's presence. Far from it. Along with his involvement in all things aqua, he spent a few profitable years in the banking industry during his political sabbatical, working for Goldman Sachs and then the National Australia Bank. He spoke their language. He understood their concerns.
Video: Senator Sinodinos appeared before the ICAC inquiry. (7.30)
But they had become alarmed at the community backlash to the changes and the way Sinodinos botched the program, particularly given the new Government, in opposition, had proposed a wide-ranging inquiry into the financial system that had the potential to get way out of hand.
Upon his elevation to the opposition front bench, in charge of financial services, Sinodinos shifted from being a door opener, as he last week described his role in the water business, to having his door wide open.
Once upon a time it was a one-way street for politicians. When booted out of office, they usually attempted to parlay their connections to desperate clients in return for cash. Disturbingly, the lines of accountability have become blurred even further these days.
In Sinodinos's case, the seamless evolution from political analyst and top level prime ministerial advisor to lobbyist and industry player and then back to high office has exposed what should be a fundamental flaw in the Australian political system.
But no one seems to care about conflicting interests anymore. And Australia's heavily concentrated and hugely powerful financial services industry has exploited this, and, in the process, become accustomed to getting what it wants.
The campaign to unwind key parts of the previous government's FOFA legislation was funded and prosecuted largely by Australia's big banks, through its various lobby groups.
The bankers themselves preferred to keep their heads down.
Of the 57 comments submitted to the Government on the proposed winding back in consumer protection, seven applicants requested anonymity. Unsurprisingly, no matter how hard you search, you won't find a document from the big four banks and AMP - the biggest players in retail superannuation and financial advice. At least, they were not among those available to the public.
The legislative changes proposed by Sinodinos, which are likely to be back on the agenda once the WA Senate elections are out of the way, are unashamedly aimed at boosting bank profits. If the changes are implemented, financial services companies no longer will be required to act in their clients' best interests at all times.
Get used to fending off youthful tellers wanting to "help you get the most" from superannuation every time you go to deposit a cheque.
If there was any doubt about the integrated strategy employed by the banks to cement their power, consider this page one line from last week's Australian Financial Review report on the abdication of Cameron Clyne as NAB chief executive and his replacement, Andrew Thorburn's, strategy.
"Mr Thorburn said NAB would 'build our capability, grow market share and grow returns' by trying to get its separate MLC wealth management business to work more closely with the rest of the company..."
Bank tellers and their colleagues will be selling products for bonuses and commissions, regardless of whether they are suited to their clients' needs. It will be what bankers laughingly refer to as a "fee-for-all".
The whole thing even has financial planners up in arms. The few remaining independents left in the business are facing extinction as the banks squeeze them out of the game.
The financial crisis was a boon to Australia's big four banks. Despite being bailed out by taxpayers, via federal government debt and deposit guarantees, they consolidated their power, emerged with 83 per cent of the home lending market, enhanced their profits and rewarded their executives with the country's highest salaries.
In opposition, Treasurer Joe Hockey mercilessly attacked the power of the major banks, regularly accusing Wayne Swan of lacking the bottle to take them on and act in the interest of ordinary Australians.
Even before the recent round of market concentration, the financial services industry was not averse to flexing its muscle.
In disturbing revelations last week, via Fairfax Media and ABC's The Business, former Australian Securities and Investment Commission lawyer James Wheeldon accused the regulator of being in the pocket of the financial services industry.
In a submission to a senate inquiry, Wheeldon claimed ASIC relaxed the laws surrounding online superannuation calculators that allowed them to be used as marketing tools, after intense lobbying by the major banks.
At one stage, he was forced to report to a lawyer seconded to the regulator from MLC - the financial services arm of NAB - who had openly declared a conflict of interest.
But don't expect to hear much of this at the upcoming wide-ranging inquiry into our financial system.
In opposition, Treasurer Joe Hockey mercilessly attacked the power of the major banks, regularly accusing Wayne Swan of lacking the bottle to take them on and act in the interest of ordinary Australians.
They were overcharging. They were ripping off consumers.
A then incensed Hockey - once dismissed by ANZ chief executive Mike Smith "taking economics lessons from Hugo Chavez" - declared he would establish a full inquiry into Australia's financial system.
He's been true to his word. But the anti-bank rhetoric has abated. And his anointed head of the inquiry David Murray recently has been uttering comments that, rather than suggest any kind of radical overhaul, are music to the ears of our major bankers.
Murray grew up in banking, starting as a teller in a suburban Sydney Commonwealth Bank branch, rising to the top of the tree and staying there for more years than many of his subordinates would have liked.
There's no denying he knows banking better than just about anyone. But independent?
If it wasn't so serious, you could dismiss the whole thing as a joke.
Ian Verrender is the ABC's business editor. View his full profile here.
Heard the one about the bankers and the inquiry? - The Drum (Australian Broadcasting Corporation)
