The National Australia Bank Ltd (ASX: NAB) share price is up 1.62% to $24.42 today despite the bank's CEO and chairman being singled out for special criticism in Kenneth Hayne's final report and recommendations for the Royal Commission into Financial Services and Banking.
The NAB share price and others are rallying due to investor relief that the Royal Commission has not recommended any bombshell reforms of the banking sector such as breaking it up or demanding root and branch reform of its regulation.
However, Commissioner Hayne complained that NAB's CEO and chairman had not learned their lessons from the Royal Commission or accepted responsibility for doing the right thing and encouraging staff to do so.
NAB has some 33,000 staff and nearly half of its share register is owned by retail investors or ordinary Australians who are likely to be unimpressed by Hayne's verdict on its CEO or his decision to take an extended summer holiday right when the bank needed all hands on deck.
Today, the NAB CEO announced he has cancelled the rest of his "planned long-service leave, aside from a personal family commitment next week".
This will come as some relief to understandably bemused investors who have watched on as the NAB share price sunk over 2018 on the back of regulatory and compliance problems all related to good corporate governance.
Elsewhere bank shares are surging higher on the back of relief over the Hayne report.
Let's take a look at the scoreboard as at 10.20am AEST.
Commonwealth Bank of Australia (ASX: CBA) is up 4.3% to $73.36
Australia & New Zealand Banking Group (ASX: ANZ) is up 5.2% to $26.53
Westpac Banking Corp (ASX: WBC) is up 5.8% to $26.31
Macquarie Group Ltd (ASX: MQG) is up 1.5% to $118.47
Some of the sharp jumps today could be the result of short sellers closing positions as the Royal Commission's recommendations have not produced any unanticipated problems for the banks. While retail investors are also likely to be rejoicing thanks to their heavy exposure to bank shares.
