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From:
Phil Johnston [mailto:scribepj@bigpond.com] Bill My name is Phil Johnston. I retired from CBA in 2007 after a 37 year career mostly administering the financial interests of syndicates of banks that funded major infrastructure projects, where I, who performed the defined role of the Agent Bank, had a fiduciary duty, as set out in voluminous legal documents (Syndicate Facility Agreements), to my ‘principals’, the banking syndicate of lenders. My employer, CBA, received an Agent’s Fee for me performing that fiduciary role of Agent Bank. I refer to the attached two articles in yesterday’s Daily Telegraph re the RBA abrogating its duty to maintain full employment in Australia. I recently provided a detailed submission on CD ROM to the RBA for the RBA to apply the ‘User Pays Principle’ to the banks’ pricing of credit cards in Australia, because I believe that the RBA is the ‘proxy lobbyist’ for the Australian people (due to its charter), so that credit cards are priced according to the ‘cost of funds’ and ‘risk of credit default’ and not at stupid interest rates as high as 18.99% for ‘purchases’ and 21.84% for ‘cash advances’ after expiry of the interest free period. Presently the “Have Nots” are paying massive interest costs and most of the “Haves” incl me, pay no interest costs, notwithstanding the “Haves” are extensive users of credit cards. The obligation of the RBA to provide a robust payments system incl "the maintenance of full employment in Australia; and the economic prosperity and welfare of the people of Australia" is legislated in the Reserve Bank Act 1959, as amended. 'Prima facie' the RBA has breached its duty of care to those vulnerable to job loss due to Australia's relatively high 'official interest rate'. I note that you hold a Bachelor of Commerce and a Master of Economics. I hold a BA (Eco) at Macq Uni and a Masters of Applied Finance at Macq Uni. Whilst not having any legal qualifications myself, I expended a large portion of my former career dealing with many skilled lawyers at Allens, Mallesons, Freehills, Blakes, Minters, Coors, Claytons etc Have you obtained any legal advice as to whether the RBA, in the capacity of an 'agent', has breached a fiduciary duty to recently unemployed caused by high interest rates, where such recently unemployed MIGHT be regarded as the RBA's 'principals'. To my knowledge a fiduciary relationship between an 'agent' and its 'principals' where the 'agent' must act in the best interests of its 'principals', usually involves a contract and payment of consideration (fee income for service provided). Examples included an estate agent working to get the best price for his/her vendor, or a doctor and patient relationship. I would be pleased to be proven
wrong about my legal understanding that the RBA is NOT legally liable (because
no fiduciary relationship exists) for those who have recently lost their jobs
due to Australia's abnormally high interest rates which are attracting material
cash deposits/investments by global hedge funds, thereby increasing the demand
for the AUD and further increasing its value. Happy to field you call. Cheers Phil
Johnston aka
Bank Teller
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