Investors to shrug off ANZ's woes
Long-term bank investors seem untroubled by scandals in the industry, whether it be royal commissions, money laundering, management ructions or regulatory penalties.
Just or not, ANZ is unlikely to suffer any long-term damage from its caning by APRA and a consultant’s report on potentially widespread governance failings.
People talk about a loss of trust, but in the real world Commonwealth Bank barely lost a customer during a running series of scandals with the Royal Commission and money laundering. Nor did Westpac with its own saga of scandals.
In both cases, the scandals did upend the board and chief and executive. National Australia Bank was also in crisis after the Royal Commission, shedding its chair and CEO. These scandals, particularly those emanating from the Royal Commission, revealed appalling behaviour towards ordinary customers, and even dead people.
Yet while each bank suffered short to mid-term discounting on their shares, the enduring impact was negligible — and, in the case of the events leading to the appointment of highly regarded new chairs and management, it was actually positive.
