The Banking Royal Commission should summons Julia Gillard to give evidence not only on the extremely suspicious way she appointed the former ASIC Chairman Greg Medcraft but also why she would appoint someone like him in the first place and was his Labor Party membership a factor.
Greg Medcraft worked for Societe Generale in the US when there were allegations of fraudulent conduct and breaches of corporate laws which is exactly what has happened with the banks in Australia under his watch as ASIC Chairman.
Mr Medcraft was also on the receiving end of a “2004 US sex discrimination lawsuit” and allegedly paid for clients to attend the “New York strip club Scores”. Now where have we heard the name “Scores” before. Yep, Kevin Rudd’s old haunt.
There are also many unanswered questions regarding Greg Medcraft’s close relationship with AMP’s head lawyer Brian Salter, who was best man at Greg Medcraft’s wedding and who has been stood aside at AMP because of revelations at the Royal Commission and could face possible criminal charges.
The former Australian Prime Minister Julia Gillard has done a recent interview saying “I made some errors” and one of her biggest errors is selling the Australian public a dud in appointing Greg Medcraft who in his 7 years as ASIC Chairman was a total failure who oversaw widespread fraud and theft in the banking industry as the Royal Commission is showing.
Greg Medcraft’s dereliction of duty as ASIC Chairman has easily cost thousands of bank customers millions of dollars.
The Age – 2011 – The secret process for appointing Greg Medcraft
PRIME Minister Julia Gillard granted an exemption from her government’s policy promising ”open and merit-based” senior public sector appointments to allow former banking executive Greg Medcraft to head Australia’s corporate regulator without first advertising the role.
Treasurer Wayne Swan on Thursday refused to answer questions about the process of appointing Mr Medcraft, a former ALP member, to the $700,000-a-year role as chairman of the Australian Securities and Investments Commission in May.
The revelation comes after The Age yesterday reported the New York division of French bank Societe Generale – overseen by Mr Medcraft for many years – has been accused by the US government of breaking corporate laws and engaging in misconduct.
Mr Medcraft’s former Societe Generale division is being pursued in court by the US Federal Housing Agency over allegations it was negligent, did shoddy due diligence and seriously misled American loan providers Fannie Mae and Freddie Mac. The US agency lodged a lawsuit in New York’s district court in September.
It follows a 2008 class action in which seven former Societe Generale employees alleged the bank’s US-based securitisation business engaged in fraudulent conduct between 2005 and 2008. Mr Medcraft, who left Societe Generale in late 2007, is not named in either lawsuit. However, he oversaw the US residential mortgage-backed securities businesses during the period it is alleged to have engaged in misconduct and breached corporate laws.
Mr Medcraft was also named in a 2004 US sex discrimination lawsuit that alleged he approved $US4000 to pay for clients to attend New York strip club Scores, commented on a woman’s legs and discriminated against an employee. (Click here to read more)
The Guardian has reported:
The Greens have written to request the auditor general investigate the declaration of interest and conflict of interest policies of the Australian Securities and Investments Commission.
The letter says the investigation is necessary after concerns “raised in the media in regards to the potential conflicts of interests between former Asic chairman Greg Medcraft and the, currently stood aside, senior counsel for AMP, Brian Salter.”
The banking royal commission heard last week that Salter had helped to draft an “independent” report on AMP – written by his former firm Clayton Utz – about AMP’s practice of charging customers fees without providing any service, before the report was handed to the regulator.
The commission heard the report had gone through 25 drafts, after more than 700 emails were exchanged between AMP and Clayton Utz, and that Salter had revised the wording of the report to remove the name of AMP’s chief executive, Craig Meller.
Salter was stood aside last week as AMP’s general counsel, a position he has held since 2008.
He was also stood aside as a member of ASIC’s external Financial Services and Credit Panel whose members advise ASIC on whether to make banning orders against financial planners. Salter – who was best man at Medcraft’s wedding – had interactions with ASIC commissioners as a member of that advisory panel. (Click here to read more)
ASIC Chairman resigns only weeks before the Banking Royal Commission announced
Greg Medcraft retired on the 12th of November 2017 which is just 2 weeks before Prime Minister Malcolm Turnbull announced the government would have a Banking Royal Commission. The Banking Royal Commission was a political issue for months leading up to the announcement by the government and Greg Medcraft would have known if a Banking Royal Commission was held he would be in a lot of trouble and his position as ASIC Chairman would be untenable. So, I wonder if that played a part in his decision to retire.
Mr Medcraft is another that needs to be summoned to give evidence at the Banking Royal Commission. In fact with what is written above you could just about justify having a Royal Commission into Greg Medcraft by himself.
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