Joe Hockey Has No Interest In G20 Rules Which Reduce Risk At Australian Banks

Joe Hockey continues to stake out his ground in the lead-up to this weekend’s G20 Finance Meeting in Sydney.

Yesterday Hockey was on the hustings setting out an ambitious plan to get the G20 to set specific growth targets. Today he is taking aim at rules which he says are aimed at restricting the operations of banks and which try to reduce risk taking.

Hockey told The Australian:

“From my perspective, and I emphasise it’s my perspective, if the rest of the regulations drift off into the ether then that sounds pretty good to me.

“With the emergence of crowd-funding and a range of other things, you are seeing money do what money does and that is it finds better returns with greater risk.

“You cannot regulate away risk and nor should we. It is a major error of judgment to try and regulate away risk.

“As long as the risk is transparent to the investor and the rules of the game are consistent and predictable, then let the markets flourish. But, my lord, no amount of regulation is going to stop people from losing money and nor should it.”

The ANZ’s Mike Smith agrees with Hockey believing that the push from Europe is about trying to export the excessive cost structures and regulatory burden of Europe around the world to the detriment of non-European Banks.

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