Angst to Action

When banks turns the screws tighter the expected response from the serfs is to take it stoically by stuffing a rag in the mouth and biting down hard. There is little recourse but to submit to the inflicted pain. Extrication is not one of the options. When you're screwed you're really screwed.

In following the Westpac saga it is with some incredulity we find angst moving toward action, albeit more a ripple than a wave. Nonetheless we shall admire it for what it is worth.

Statement:

At Westpac sustainability means 'doing the right thing'. It's our short-hand for what is complex, values-based agenda focused on doing the right thing for our customers, our employees, our shareholders, our communities and our business.

The Westpac bank utilises community dialogue to determine how they deal with 'material issues,' for their stakeholders (shareholders). I am not sure what 'material issues' mean. It is code for something.

A number of agencies make up Westpac's Community Consultative Council. This council provides community feedback so that Westpac can determine its priorities for its stakeholders. The Council is an integral element of their Stakeholder Engagement Framework.

In response to the latest furor over doubling the interest rates Sydney Morning Herald reported that the Finance Sector Union and Australian Council of Trade Unions (ACTU) resigned from Westpac's Community Consultative Council. I checked Westpac's list and did not see these agencies posted there. I presume they have already been removed from the web page.

Further, Graeme Samuel, the head for the Australian Competition and Consumer Commission, announced that he is considering withdrawing support for Westpac's takeover of St. George Bank.

The sabers clash. Who's to say if any serious action will come from this. What is significant though is that community outrage is being taken one step further than being simply expressed .

http://www.smh.com.au/business/walkouts-over-westpac-rate-rises-20091206-kcuy.html

"Westpac is disappointed," said a spokesman, David Lording. "But we respect that sometimes opinions diverge."

So how does Westpac Respond?

Spin, baby spin. Its all the global financial crisis's fault! Wow! how convenient. It's the universal answer guaranteed to be indefensible. It works too. How many times have I heard Wayne Swan use it? As a defence it has lost credibility.

"Westpac tries a new twist on rate rise"

http://www.smh.com.au/business/property/westpac-tries-new-twist-on-rate-rise-20091207-kfbs.html

Adele Fergusen: Are we living in a parallel universe?

Also, check out the comments section. There are plenty of satisfied bank sympathisers registering their support for Westpac. So what's the problem with the rest of us?

Gail Kelly, CEO of Westpac