So why does he think they will listen to him this time?

http://au.news.yahoo.com/latest/a/-/latest/12813370/swan-warns-banks-to-pass-on-rate-cut/

Australia's big banks are hugely profitable and their customers would be very angry if they failed to pass on an interest rate cut in full, Treasurer Wayne Swan says.

In a pre-emptive strike ahead of the Reserve Bank of Australia decision on Tuesday on whether to make a third successive cut to the official cash rate, Mr Swan warned banks it was now easier than ever for dissatisfied customers to take their business elsewhere.

He said the banks were saying they should have a right to maintain huge profitability forever, irrespective of market conditions.

The official cash rate now stands at 4.25 per cent, with market analysts almost universally tipping a 25 basis point cut to four per cent on Tuesday.

The banks have been strongly criticised for not passing on all of past rate cuts to their customers.

Mr Swan said bank net interest margins were back where they were before the global financial crisis and return on equity was unlike that of just about any of their peers elsewhere in the world.

"But the banks are making it very clear that they're prepared, perhaps, to do a range of things, to keep that huge profitability in place," he told ABC TV.

"Their customers will be very angry if they don't pass (rate cuts) through in full. I say to their customers have a look around, you've got a greater capacity to shop around now than you've ever had before."

Mr Swan released Treasury data showing banking sector reforms, including bans on mortgage exit fees, was encouraging more and more people to take their business elsewhere.

In the five months since the reforms were implemented, 320,000 households had taken out no exit fee loans. From July 1, customers will be able to switch deposit accounts with the stroke of a pen.

"Lenders now have to win the loyalty of their customers with good service and competitive lending rates. Banks can no longer assume that once a customer signs on the dotted line, they'll stick with them," Mr Swan said.

Opposition treasury spokesman Joe Hockey disputed Mr Swan's claim that families were paying less in interest than they were under the coalition.

"On average, effective interest rates paid by home buyers and small businesses were lower under the coalition from 1996-2007 than they have been under Labor since the 2007 election," he said in a statement.

"Under the coalition, the average standard variable mortgage rate was 24 basis points lower than Labor."

ACTU president Ged Kearney said Australia's big banks recorded booming profits and rewarded their chief executives with generous pay rises while cutting jobs.

"Australia's big banks are not struggling," she said in a statement.
"It is crocodile tears for them to be crying poor and even to be contemplating refusing to pass on an interest rate cut at the same time as they are hurting so many workers' livelihoods. Should they carry out this threat, they deserve to feel the full weight of a community backlash."

Banks ignore every treasurer...Im sure you didnt come down in the last shower so you should already know this.

what pizzzzzes me off is they way they get rid of staff.. its bloody disgusting glad they dont have their greedy grubby hands on my money

February 5, 2012




Banks must pass on in full any cut in official interest rates next week in light of the hundreds of job losses in the sector, unions say.

The Reserve Bank of Australia (RBA) holds its first board meeting of the year on Tuesday and is widely expected to announce a further cut in the 4.25 per cent cash rate.

However, the big banks have warned that, due to rising funding costs, they may not be able to pass on any reduction in full.   :(


Westpac announced last week it ill shed 400 jobs and send a further 150 offshore, and last month ANZ cut 131 positions.   >:(

ACTU president Ged Kearney predicts a community backlash if the banks refuse to pass on any official interest rate cut in full.

She said the banks have already ensured many families will be battling to make ends meet following hundreds of lay-offs in the sector.   :(

"Having recorded booming profits and rewarded their CEOs with generous pay rises, Australia's big banks are not struggling," she said in a statement on Sunday.

"It is crocodile tears for them to be crying poor and even to be contemplating refusing to pass on an interest rate cut at the same time as they are hurting so many workers' livelihoods."   ;)

Ms Kearney said it may be time for the government to consider stronger regulation of the sector if the banks fail to behave in a socially responsible manner.

© 2012 AAP

wrote on Feb 5^th, 2012 at 4:51pm:

February 5, 2012 Banks must pass on in full any cut in official interest rates next week in light of the hundreds of job losses in the sector, unions say. The Reserve Bank of Australia (RBA) holds its first board meeting of the year on Tuesday and is widely expected to announce a further cut in the 4.25 per cent cash rate. However, the big banks have warned that, due to rising funding costs, they may not be able to pass on any reduction in full.   :( Westpac announced last week it ill shed 400 jobs and send a further 150 offshore, and last month ANZ cut 131 positions.   >:( ACTU president Ged Kearney predicts a community backlash if the banks refuse to pass on any official interest rate cut in full. She said the banks have already ensured many families will be battling to make ends meet following hundreds of lay-offs in the sector.   :( "Having recorded booming profits and rewarded their CEOs with generous pay rises, Australia's big banks are not struggling," she said in a statement on Sunday. "It is crocodile tears for them to be crying poor and even to be contemplating refusing to pass on an interest rate cut at the same time as they are hurting so many workers' livelihoods."   ;) Ms Kearney said it may be time for the government to consider stronger regulation of the sector if the banks fail to behave in a socially responsible manner. © 2012 AAP

its up to the customers though isnt it???

if you dont mind being treated like a dogs dinner then so be it..not much a bloody union can do about it.

Its up to the members of the union what they decide to do, is it not?.   ;)

wrote on Feb 5^th, 2012 at 5:07pm:

Its up to the members of the union what they decide to do, is it not?.   ;)

are you talking bank clerks???... I am sure they can see their jobs being eroded more and more.. and thats got nothing to do with rates...

I feel sorry for them as they are in the firing line.. and they can do nothing about it..any customer angst gets taken out on them.


lets see the CEO at the front desk the day after they say they wont pass it on..LOL>

Last time I checked the banks were independent of the government. unless of course you want a socialist state, Maqqa? ;D

Did they ever listen to Costello ?

I noticed maqqa hasn't come back to defend himself over the gibe that all treasurers are ignored!!  ;D ;D ;D ;D ;D

BatteriesNotIncluded wrote on Feb 5^th, 2012 at 5:56pm:

I noticed maqqa hasn't come back to defend himself over the gibe that all treasurers are ignored!!  ;D ;D ;D ;D ;D

The big banks do whatever is best for their CEO's and shareholders..treasurers have always been treated as a minor annoyance.

adelcrow wrote on Feb 5^th, 2012 at 6:12pm:

BatteriesNotIncluded wrote on Feb 5th, 2012 at 5:56pm: I noticed maqqa hasn't come back to defend himself over the gibe that all treasurers are ignored!!  ;D ;D ;D ;D ;D The big banks do whatever is best for their CEO's and shareholders..treasurers have always been treated as a minor annoyance.

i'M JUST NOTICING MAQQA CAN'T ACCEPT THAT!!  ::) :D :D :D

adelcrow wrote on Feb 5^th, 2012 at 4:13pm:

Banks ignore every treasurer...Im sure you didnt come down in the last shower so you should already know this.

Costello pleaded with them not to increase his "record low interest rates" on the eve of the November, 2007 Federal Election

They told him to "butt out" - on NO uncertain terms - and proceeded to raise them, regardless - in line with the 250 base point RBA increase

cods wrote on Feb 5^th, 2012 at 4:31pm:

what pizzzzzes me off is they way they get rid of staff.. its bloody disgusting glad they dont have their greedy grubby hands on my money

I am with you. Banks never care what a Treasurer says but when they sack staff to maintain profit then claim bonuses i really get the sh1ts. Regulation is not healthy but executives need to have parameters as to how they claim a bonus and sacking staff should mean immediate forfeit of bonus for two years foe all executive staff in the affected section.

Believe it or not, I am on the side of the big banks on this one.

There has been a frustration in investment banking for some time that every time there is a rate cut, the politicians and Treasurer - who are not bankers and have not worked in the industry - demand banks pass on every ounce of the cut.

The Australian banks do not operate in a vacuum, they borrow heavily from outside of Australia on the capital markets to fund their expansion. This is mainly because in relative terms Australia is such a small country and the capital isn't available.

With capital becoming less available in Europe and North America, the Australian banks need to ensure they remain robust and build in additional flak to withstand further crunch.

They probably should pass on 50% of any next cut and keep the remainder.

As a shareholder of two of them, that is what I would like to see happen.

And no they won't listen to Swan Macca you're right.

But with respect, they had the same frustrations with Howard and Costello as well.

Andrei.Hicks wrote on Feb 5^th, 2012 at 8:51pm:

And no they won't listen to Swan Macca you're right. But with respect, they had the same frustrations with Howard and Costello as well.

in what way?

Maqqa wrote on Feb 5^th, 2012 at 9:50pm:

Andrei.Hicks wrote on Feb 5th, 2012 at 8:51pm: And no they won't listen to Swan Macca you're right. But with respect, they had the same frustrations with Howard and Costello as well. in what way?

Political interference and pressure Macca.

The banks would be put under huge pressure with the Treasurer demanding in the media they pass on every part of a rate decrease.

This would be without even considering their own increased cost of borrowing capital on the global market.

Andrei.Hicks wrote on Feb 6^th, 2012 at 9:03pm:

Maqqa wrote on Feb 5th, 2012 at 9:50pm: Andrei.Hicks wrote on Feb 5th, 2012 at 8:51pm: And no they won't listen to Swan Macca you're right. But with respect, they had the same frustrations with Howard and Costello as well. in what way? Political interference and pressure Macca. The banks would be put under huge pressure with the Treasurer demanding in the media they pass on every part of a rate decrease. This would be without even considering their own increased cost of borrowing capital on the global market.

but you do this behind closed doors rather than announce it in a public forum - never worked before never will

all Swan wants was the publicity to give him the perception of being strong

Maqqa wrote on Feb 6^th, 2012 at 9:05pm:

but you do this behind closed doors rather than announce it in a public forum - never worked before never will all Swan wants was the publicity to give him the perception of being strong

If I recall rightly mate, there were instances where Costello made it clear in the media he expected the big 4 to abide in full to a rate adjustment?

Andrei.Hicks wrote on Feb 6^th, 2012 at 9:07pm:

Maqqa wrote on Feb 6th, 2012 at 9:05pm: but you do this behind closed doors rather than announce it in a public forum - never worked before never will all Swan wants was the publicity to give him the perception of being strong If I recall rightly mate, there were instances where Costello made it clear in the media he expected the big 4 to abide in full to a rate adjustment?

Can't remember that one and can't remember an instance under the Coalition they didn't pass on the rates

I'll look again

Maqqa wrote on Feb 6^th, 2012 at 9:09pm:

Andrei.Hicks wrote on Feb 6th, 2012 at 9:07pm: Maqqa wrote on Feb 6th, 2012 at 9:05pm: but you do this behind closed doors rather than announce it in a public forum - never worked before never will all Swan wants was the publicity to give him the perception of being strong If I recall rightly mate, there were instances where Costello made it clear in the media he expected the big 4 to abide in full to a rate adjustment? Can't remember that one and can't remember an instance under the Coalition they didn't pass on the rates I'll look again

I wouldn't bother, the Coalition never had circumstances like these, because there have never been circumstances like these, before!

perceptions_now wrote on Feb 6^th, 2012 at 10:12pm:

Maqqa wrote on Feb 6th, 2012 at 9:09pm: Andrei.Hicks wrote on Feb 6th, 2012 at 9:07pm: Maqqa wrote on Feb 6th, 2012 at 9:05pm: but you do this behind closed doors rather than announce it in a public forum - never worked before never will all Swan wants was the publicity to give him the perception of being strong If I recall rightly mate, there were instances where Costello made it clear in the media he expected the big 4 to abide in full to a rate adjustment? Can't remember that one and can't remember an instance under the Coalition they didn't pass on the rates I'll look again I wouldn't bother, the Coalition never had circumstances like these, because there have never been circumstances like these, before!

You're getting all pessimistic again mate....

A question about Westpacs job cuts was asked this evening on the 2012 premier of Q&A.

Unlike Wong and Hockey, I'll tell it like it is; Westpacs decision to cut jobs even after releasing a profit report in the billions is an absolute disgrace, and I would encourage anyone who is a westpac customer to close down their accounts and take their money elsewhere, because Westpac do not deserve their patronage.

The banks NEED to be re-regulated, and should
never have been de-regulated in the first place.

They obviously have NO concept of the idea of
self-regulation.

You wouldn't trust Swan with the office petty cash tin.
Of course the banks ignore him.

Maqqa wrote on Feb 5^th, 2012 at 9:50pm:

Andrei.Hicks wrote on Feb 5th, 2012 at 8:51pm: And no they won't listen to Swan Macca you're right. But with respect, they had the same frustrations with Howard and Costello as well. in what way?

Banks defy Costello, lift home loan rates
Thursday, 25 October , 2007

There was more bad news for the Treasurer today when two of Australia's biggest banks publicly resisted his pressure not to lift home loan rates.

The chairman of the National Australia Bank and the chief executive of ANZ both politely told Mr Costello to back off from their business.

They said decisions on how to set mortgage rates were theirs alone.

Peter Costello had earlier warned the banks, again, not to use the sub-prime meltdown in the United States as an excuse to push up home loan rates.

Banking analysts were critical. One said the Treasurer's comments were fatuous and laughable.

Banks have already put up rates on credit cards, personal loans and business loans as the global credit crunch pushes up their costs of funding.

And, experts say, it's only a matter of time before the Big Four lift home loan rates above and beyond any increases imposed by the RBA.



http://www.abc.net.au/pm/content/2007/s2070665.htm

chicken_lipsforme wrote on Feb 7^th, 2012 at 8:09am:

You wouldn't trust Swan with the office petty cash tin. Of course the banks ignore him.

He has never worked in the private sector.

I never trust people who are perennial public sector workers.

They don't know what real work is.

buzzanddidj wrote on Feb 7^th, 2012 at 8:59pm:

Maqqa wrote on Feb 5th, 2012 at 9:50pm: Andrei.Hicks wrote on Feb 5th, 2012 at 8:51pm: And no they won't listen to Swan Macca you're right. But with respect, they had the same frustrations with Howard and Costello as well. in what way? Banks defy Costello, lift home loan rates Thursday, 25 October , 2007 There was more bad news for the Treasurer today when two of Australia's biggest banks publicly resisted his pressure not to lift home loan rates. The chairman of the National Australia Bank and the chief executive of ANZ both politely told Mr Costello to back off from their business. They said decisions on how to set mortgage rates were theirs alone. Peter Costello had earlier warned the banks, again, not to use the sub-prime meltdown in the United States as an excuse to push up home loan rates. Banking analysts were critical. One said the Treasurer's comments were fatuous and laughable. Banks have already put up rates on credit cards, personal loans and business loans as the global credit crunch pushes up their costs of funding. And, experts say, it's only a matter of time before the Big Four lift home loan rates above and beyond any increases imposed by the RBA. http://www.abc.net.au/pm/content/2007/s2070665.htm

So you've found one instance over a 12 years period


Swan's been harping on about since 2007

Andrei.Hicks wrote on Feb 6^th, 2012 at 10:17pm:

perceptions_now wrote on Feb 6th, 2012 at 10:12pm: Maqqa wrote on Feb 6th, 2012 at 9:09pm: Andrei.Hicks wrote on Feb 6th, 2012 at 9:07pm: Maqqa wrote on Feb 6th, 2012 at 9:05pm: but you do this behind closed doors rather than announce it in a public forum - never worked before never will all Swan wants was the publicity to give him the perception of being strong If I recall rightly mate, there were instances where Costello made it clear in the media he expected the big 4 to abide in full to a rate adjustment? Can't remember that one and can't remember an instance under the Coalition they didn't pass on the rates I'll look again I wouldn't bother, the Coalition never had circumstances like these, because there have never been circumstances like these, before! You're getting all pessimistic again mate....

It seems when the Labor party form government - the conditions are worse for them

But when the Coalition comes in - "IT's a miracle - everything is better"

ANZ has today increased its rates despite the RBA keeping theirs unchanged

When did that happen under a Coalition government?

Maqqa wrote on Feb 10^th, 2012 at 3:37pm:

ANZ has today increased its rates despite the RBA keeping theirs unchanged When did that happen under a Coalition government?

::)

Maqqa wrote on Feb 6^th, 2012 at 9:09pm:

Andrei.Hicks wrote on Feb 6th, 2012 at 9:07pm: Maqqa wrote on Feb 6th, 2012 at 9:05pm: but you do this behind closed doors rather than announce it in a public forum - never worked before never will all Swan wants was the publicity to give him the perception of being strong If I recall rightly mate, there were instances where Costello made it clear in the media he expected the big 4 to abide in full to a rate adjustment? Can't remember that one and can't remember an instance under the Coalition they didn't pass on the rates I'll look again

You probably also don't remember (even though you have been shown the articles several times) that in 2007 the banks gave Mr Costello notice that they were going to act independant of the RBA.

There was a report released showing that the Banks were ripping off their customers with their charges.

Mr Howard the then PM came out and asked the banks to stop ripping customers off in this manner.

The banks pointed out that it was a free market system and that the PM should mind his own business.

Last thing Mr Howard had to say about the banks - he took their advice.

It's clearly not only treasurers that the banks are happy to take no notice of.

Since Keating freed up Australias financial system there has been plenty of choice so I cant for the life of me see why people are still complaining about the banks.
If you dont like your bank or you think they are ripping you off...move your business elsewhere.

Maqqa wrote on Feb 10^th, 2012 at 3:37pm:

ANZ has today increased its rates despite the RBA keeping theirs unchanged When did that happen under a Coalition government?

You dont like getting a fair return for your money from your bank?
You are also ignoring that our banks get a heap of their money from the international markets and money is getting harder to come by thanks to Europe going cactus.
I cant believe Maqqa still think Australia is isolated from the international markets.
Is Maqqa still buying the Liberal Parties economic myths?  ;D

Maqqa probably still believes the Chinese economic boom wasnt responsible for our surpluses.
He still thinks Howard was an alchemist  ;D ;D

adelcrow wrote on Feb 10^th, 2012 at 6:01pm:

Since Keating freed up Australias financial system there has been plenty of choice so I cant for the life of me see why people are still complaining about the banks. If you dont like your bank or you think they are ripping you off...move your business elsewhere.

The problem has been that all the banks have been ripping people off in the same manner.

The only improvment which choice gives you is that you can pick who is going to be ripping you off.

Time for a peoples bank perhaps?




“To the Treasurer: an Australia Post People’s Bank would allow taxpayers to easily regain the advantages of government owned and operated banking. All of the electronic transfer infrastructure already exists and it would provide job opportunities in the smallest communities where the big four and their co-branded derivatives don’t want to open a branch. It would not charge exorbitant illegal fees and would always follow Reserve Bank leads on interest rates. Operating surplus could assist budget bottom line. Will you make it happen?”


"The idea of a “people’s bank” was raised by the “Six Economists” who urged a new financial inquiry and a range of other measures in 2009 in the aftermath of the financial crisis with Australia Post proposed as the vehicle for increasing competition in a market dominated by the big four banks. The letter raised 14 specific questions, each of them meaty issues. I wrote about the issue at the time (in the shadow of the GFC and with Kevin Rudd at the helm):

“It merits serious consideration because the long-term project —  pursued by both sides of politics —  to maintain competition in lending in Australia is failing. It depended on the availability of externally-sourced capital for the residential mortgage-backed securities (RMBS) market, which was fine while the world financial system was spilling over with finance but ended the moment the crisis hit —  especially after the bank guarantee massively strengthened the hand of the major banks over what was left of the non-bank lending sector.

“… It’s hard to see what downsides there are for the government in conducting the sort of inquiry urged in the letter. It has handled the triage stage of the financial crisis very well. Now is the time to take a step back and consider an overarching strategy.

“How long until the government is again confronted with one of the banks unilaterally raising interest rates, particularly for business lending? The problem of Australia’s banking oligopoly needs a long-term solution.”

And just to highlight that this issue is just as relevant as it was in July 2009, there’s currently speculation that, in the absence of an RBA rate cut, ANZ is considering lifting interest rates despite recent claims from banks about rising funding costs repeatedly being discredited.
"

http://www.crikey.com.au/2012/02/09/oursay-challenges-mps-on-intervention-banking-and-personal-wealth/

Dnarever wrote on Feb 10^th, 2012 at 6:15pm:

adelcrow wrote on Feb 10th, 2012 at 6:01pm: Since Keating freed up Australias financial system there has been plenty of choice so I cant for the life of me see why people are still complaining about the banks. If you dont like your bank or you think they are ripping you off...move your business elsewhere. The problem has been that all the banks have been ripping people off in the same manner. The only improvment which choice gives you is that you can pick who is going to be ripping you off.

The smaller banks and credit unions have much better deals than the big banks.
My motto is..invest in CBank, Nab, Westpac and ANZ and do your banking elsewhere  :)

UBank UHomeLoan (Variable Rate) Offering a $0 application and ongoing fee, plus a low
interest rate 6.14% Comp 6.14% $0 / $0 80% $100,000 / $1,000,00




PMG Standard Variable Home Loan A flexible home loan offer with one of the lowest available home loan interest rates in the market. 6.16% Comp 6.16% $0 / $0 90% $0 / $2,000,000

Julia Gillard is so far on the front foot this year after Tony Abbott pretended he wanted the economy to be the arena of battle!

...he never wanted the economy to be the arena of battle because he thinks economics is boring!!

WOMEN AREN'T STUPID: THEY KNOW HOW MONEY WORKS AND THEY AINT GOING TO VOTE FOR A BLOKE WHO CAN'T EVEN KEEP TRACK OF HIS OWN B.S.!!

Game, Set and Match: Julia wins!!

I read somewhere recently that japanese banks are thinking about opening up their services in australia.

Home loan interest rates between 1.5 to 3 percent.



I'm paying about 2 percent here in tokyo.

darkhall67 wrote on Feb 10^th, 2012 at 6:36pm:

I read somewhere recently that japanese banks are thinking about opening up their services in australia. Home loan interest rates between 1.5 to 3 percent. I'm paying about 2 percent here in tokyo.

2 Japanese banks are applying for permits

Japanese savings are high therefore they are looking at bring in funds directly from Japan

should give the Aussie banks a run for their money or they can join in the fun

adelcrow wrote on Feb 10^th, 2012 at 6:08pm:

Maqqa probably still believes the Chinese economic boom wasnt responsible for our surpluses. He still thinks Howard was an alchemist  ;D ;D

The same boom is still rampant with even higher prices

Yet Swan can't seem to balance the books and/or increase GDP

darkhall67 wrote on Feb 10^th, 2012 at 6:36pm:

I read somewhere recently that japanese banks are thinking about opening up their services in australia. Home loan interest rates between 1.5 to 3 percent. I'm paying about 2 percent here in tokyo.

and the japanese economy is in the toilet and has been for years.