As I was saying earlier about the greed of banks we have this Christmas tiding to uplift us. I am referring to Westpac Bank NSW. Within hours of the Reserve Bank of Australia (RBA) raising the official cash rate by 25 points Westpac announced an increase of their standard variable mortgage rate by 50 points. Not bad profit if one can get it. Not very ethical, but there you go.
Of course the bank profusely defended this action, citing continuing cost pressures from wholesale funding markets and the RBA's increase in the cash rate. Naturally, the bank feels regret that they have to take this action. I watched their television spokesman, Bill Evans, this morning fuddle his way through trying to justify the increase. On the ABC radio report the Westpac spokesperson read a statement basically saying that he could not comment on the bank's decision. Duh!
Well there are a number of not happy Jans and Jeffs running around town today crying foul. Of course, the Treasurer, Wayne Swan, can't see the justification for Westpac's reaction. The main banks have made outstanding profits during this supposed economic crisis. The banks received government support in the form of the bank deposit guarantee. Do you think the banks would see it to support the people in these difficult circumstances? Nnnnnope!
I think our government is so beholden to the banks they haven't the nerve to regulate them. We're cooked.
If the shoe fits...
Westpac's chief executive Gail Kelly: "This is bank bashing, isn't it?"
We're in the money, we're in the money, da da da
We're following the leader, the leader, ... where ever it may go, dadum, dadum
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