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Australia mulls probe into financial scandal at Commonwealth Bank of Australia

Published on Jun 27, 2014 11:44 AM
 

SYDNEY (AFP) - Australia said on Friday it would consider calls for a national inquiry into a major financial scandal at the country's biggest listed firm, but would not rush a decision.

Prime Minister Tony Abbott said he was considering a report by a Senate committee that urged a royal commission into the Commonwealth Bank of Australia's financial planning arm amid allegations of forgery, fraud and cover-ups between 2006 and 2010.

Thousands of people are reported to have lost their life savings after CBA advisers placed them on risky products - including forging signatures in some cases - before the global financial crisis as they chased large bonuses.

The products collapsed, leading to the loss of millions of dollars. The Senate inquiry found the bank then underpaid the victims through compensation, allegedly tried to avoid scrutiny from regulators and covered up its actions.

 
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