Banks 'need to be pulled into line'
May 23, 2012

   




THE head of one of the nation's biggest unions believes Australian banks should be forced to mirror the movements of Reserve Bank interest rates when setting their own lending rates.   :-?

Paul Howes, national secretary of the Australian Workers' Union, said the nation's banks were operating like ''a de facto cartel'', gouging customers. His comments came as National Australia Bank chief executive Cameron Clyne gave up the argument that overseas costs were what made the banks not pass on all of the rate cuts handed out by the Reserve Bank. ''What is happening in Europe is not having an impact on our cost of funding,'' he said. He pointed instead to the competition to attract deposits by offering the best rates.

Speaking at the National Press Club yesterday, Mr Howes said it was time for an ''active'' Commonwealth government to ''pull the financial services sector back into line''.


He asked why banks felt they could brazenly ignore Reserve Bank rate cuts when they were simultaneously reliant on the federal government to licence them. The Reserve Bank cut the official cash rate by 50 basis points this month, but retail banks on average passed on 37 basis points of the reduction to customers.

''That the banks have declared their independence from the Reserve Bank of Australia, and said effectively that we will ignore [those] policy settings … means the current system isn't working,'' Mr Howes said.

Mr Howes said it was time the government put an end to ''the protection racket that allows banks to record massive profits while sacking staff and gouging consumers''.    :(

Banks last night questioned whether Mr Howes' comments were intended to distract from other issues surrounding the union movement.


    Commenter
        Hawker
    Location
    Date and time
        May 23, 2012, 8:05AM

        I agree. Banks provide an essential service to our economy with fractional reserve lending and fund creation. However, they are playing us all for fools with this continual line of "if you DON'T LET US DO WHATEVER WE WANT WE WILL GO BANKRUPT AND AUSTRALIA WILL CRASH AND BURN, I SAYS, BURN AND BE CONDEMNED TO FUNCTION LIKE A THIRD WORLD COUNTRY!!!!1111"    :(

        Banks function just fine overseas without gouging their customers for the sake of their shareholders. A government that steps up regulation to protect customers and staff just encourages innovation: the banks will have to find new, creative ways of making profit that don't treat customers and staff like annoying barriers to profit or cash cows.   :(

        Don't buy into all that fear crap.

    Commenter
        Asynca
    Location
    Date and time
        May 23, 2012, 8:19AM


Read more: http://www.theage.com.au/national/banks-need-to-be-pulled-into-line-20120522-1z394.html#ixzz1vdpZX5mf

Paul Howes, national secretary of the Australian Workers' Union

Another liar.

Tell me what Howes said about the carbon tax and Aussie jobs imcrookonit

You should have watched the press club.   ;)

wrote on May 23^rd, 2012 at 9:07am:

You should have watched the press club.   ;)

To see another liar in action? No thanks.

EXACTLY a year ago tomorrow, Australian Workers Union national secretary Paul Howes told The Australian he would pull his union's support for the Gillard government's carbon dioxide tax if it hit Australian workers.
"If one job is gone, our support is gone," Howes warned.

What an empty threat that proved to be.

Howes (pictured) was supported at the time by CFMEU president Tony Maher, who said Howes was correct.
"It shouldn't cost a job and we won't stand by if it costs jobs," Maher said


The Daily Telegraph
•  April 13, 2012 12:00AM

I wonder how many jobs have gone due to the carbon tax?.  ( That hasn't started yet. )     ::)

Banks have no obligation to get in line, we have given them their power and allowed them to control us.
It is our the peoples obligation to stop them, monitor them and tell them where to go.
A normal society would have already done so.

bobbythefap1 wrote on May 23^rd, 2012 at 9:37am:

Banks have no obligation to get in line, we have given them their power and allowed them to control us. It is our the peoples obligation to stop them, monitor them and tell them where to go. A normal society would have already done so.

Such as?
Name me a country that isnt a dictatorship that has pulled their banks into line.

The banks are making billions and still cry poor.

Super profits tax seems in order.
Also, tax on incomes over $1mil at 50% sounds appropirate as well.

Sadly, the ALP doesnt have the balls, just empty threats.

wrote on May 23^rd, 2012 at 8:54am:

Banks 'need to be pulled into line' May 23, 2012     THE head of one of the nation's biggest unions believes Australian banks should be forced to mirror the movements of Reserve Bank interest rates when setting their own lending rates.   :-? Paul Howes, national secretary of the Australian Workers' Union, said the nation's banks were operating like ''a de facto cartel'', gouging customers. His comments came as National Australia Bank chief executive Cameron Clyne gave up the argument that overseas costs were what made the banks not pass on all of the rate cuts handed out by the Reserve Bank. ''What is happening in Europe is not having an impact on our cost of funding,'' he said. He pointed instead to the competition to attract deposits by offering the best rates. Speaking at the National Press Club yesterday, Mr Howes said it was time for an ''active'' Commonwealth government to ''pull the financial services sector back into line''. He asked why banks felt they could brazenly ignore Reserve Bank rate cuts when they were simultaneously reliant on the federal government to licence them. The Reserve Bank cut the official cash rate by 50 basis points this month, but retail banks on average passed on 37 basis points of the reduction to customers. ''That the banks have declared their independence from the Reserve Bank of Australia, and said effectively that we will ignore [those] policy settings … means the current system isn't working,'' Mr Howes said. Mr Howes said it was time the government put an end to ''the protection racket that allows banks to record massive profits while sacking staff and gouging consumers''.    :( Banks last night questioned whether Mr Howes' comments were intended to distract from other issues surrounding the union movement.     Commenter         Hawker     Location     Date and time         May 23, 2012, 8:05AM         I agree. Banks provide an essential service to our economy with fractional reserve lending and fund creation. However, they are playing us all for fools with this continual line of "if you DON'T LET US DO WHATEVER WE WANT WE WILL GO BANKRUPT AND AUSTRALIA WILL CRASH AND BURN, I SAYS, BURN AND BE CONDEMNED TO FUNCTION LIKE A THIRD WORLD COUNTRY!!!!1111"    :(         Banks function just fine overseas without gouging their customers for the sake of their shareholders. A government that steps up regulation to protect customers and staff just encourages innovation: the banks will have to find new, creative ways of making profit that don't treat customers and staff like annoying barriers to profit or cash cows.   :(         Don't buy into all that fear crap.     Commenter         Asynca     Location     Date and time         May 23, 2012, 8:19AM Read more: http://www.theage.com.au/national/banks-need-to-be-pulled-into-line-20120522-1z394.html#ixzz1vdpZX5mf

BANKS RUN ECONOMIES SO THIS IS A SERIOUS ISSUE!!

There is no need to force the banks. Just shop around.

freediver wrote on May 23^rd, 2012 at 9:01pm:

There is no need to force the banks. Just shop around.

What about the new 5th pillar?

http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html



Quote:

WAYNE SWAN is poised to unveil controversial measures to create a fifth pillar of the banking system using the muscle of the $73 billion credit union and building society industry. It is a move that would create a new force in banking and put downward pressure on home lending rates. The Treasurer's plan would address rising pressure on the government to rein in the big four banks following their super-sized interest rate increases last month. Read more: http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html#ixzz1vgxvY1X3

Andrei.Hicks wrote on May 23^rd, 2012 at 9:38am:

bobbythefap1 wrote on May 23rd, 2012 at 9:37am: Banks have no obligation to get in line, we have given them their power and allowed them to control us. It is our the peoples obligation to stop them, monitor them and tell them where to go. A normal society would have already done so. Such as? Name me a country that isnt a dictatorship that has pulled their banks into line.

HOW ABOUT YOU DONT ACT LIKE YOU ALWAYS DO AND ACTUALLY RESPOND TO THE BULK OF MY POST NOT JUST ONE TINY PART OF IT.

Bobby. wrote on May 23^rd, 2012 at 9:38pm:

freediver wrote on May 23rd, 2012 at 9:01pm: There is no need to force the banks. Just shop around. What about the new 5th pillar? http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html Quote: WAYNE SWAN is poised to unveil controversial measures to create a fifth pillar of the banking system using the muscle of the $73 billion credit union and building society industry. It is a move that would create a new force in banking and put downward pressure on home lending rates. The Treasurer's plan would address rising pressure on the government to rein in the big four banks following their super-sized interest rate increases last month. Read more: http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html#ixzz1vgxvY1X3

Bump to FD

Bobby. wrote on May 23^rd, 2012 at 9:38pm:

freediver wrote on May 23rd, 2012 at 9:01pm: There is no need to force the banks. Just shop around. What about the new 5th pillar? http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html Quote: WAYNE SWAN is poised to unveil controversial measures to create a fifth pillar of the banking system using the muscle of the $73 billion credit union and building society industry. It is a move that would create a new force in banking and put downward pressure on home lending rates. The Treasurer's plan would address rising pressure on the government to rein in the big four banks following their super-sized interest rate increases last month. Read more: http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html#ixzz1vgxvY1X3

Interesting, seems like a good temporary solution.
I have always recommended credit unions, and people are never disappointed
But there is no doubt that if this group gains as much power and monopoly as the big 4 it will be corrupt, if it isnt from the start.

bobbythefap1 wrote on May 24^th, 2012 at 10:58am:

Andrei.Hicks wrote on May 23rd, 2012 at 9:38am: bobbythefap1 wrote on May 23rd, 2012 at 9:37am: Banks have no obligation to get in line, we have given them their power and allowed them to control us. It is our the peoples obligation to stop them, monitor them and tell them where to go. A normal society would have already done so. Such as? Name me a country that isnt a dictatorship that has pulled their banks into line. HOW ABOUT YOU DONT ACT LIKE YOU ALWAYS DO AND ACTUALLY RESPOND TO THE BULK OF MY POST NOT JUST ONE TINY PART OF IT.

DRAH has still got its capitals on…… ::) :o

FriYAY wrote on May 24^th, 2012 at 3:57pm:

bobbythefap1 wrote on May 24th, 2012 at 10:58am: Andrei.Hicks wrote on May 23rd, 2012 at 9:38am: bobbythefap1 wrote on May 23rd, 2012 at 9:37am: Banks have no obligation to get in line, we have given them their power and allowed them to control us. It is our the peoples obligation to stop them, monitor them and tell them where to go. A normal society would have already done so. Such as? Name me a country that isnt a dictatorship that has pulled their banks into line. HOW ABOUT YOU DONT ACT LIKE YOU ALWAYS DO AND ACTUALLY RESPOND TO THE BULK OF MY POST NOT JUST ONE TINY PART OF IT. DRAH has still got its capitals on…… ::) :o

Why do you guys come to a forum if you are incapable of having a conversation and answering questions?

bobbythefap1 wrote on May 24^th, 2012 at 5:15pm:

FriYAY wrote on May 24th, 2012 at 3:57pm: bobbythefap1 wrote on May 24th, 2012 at 10:58am: Andrei.Hicks wrote on May 23rd, 2012 at 9:38am: bobbythefap1 wrote on May 23rd, 2012 at 9:37am: Banks have no obligation to get in line, we have given them their power and allowed them to control us. It is our the peoples obligation to stop them, monitor them and tell them where to go. A normal society would have already done so. Such as? Name me a country that isnt a dictatorship that has pulled their banks into line. HOW ABOUT YOU DONT ACT LIKE YOU ALWAYS DO AND ACTUALLY RESPOND TO THE BULK OF MY POST NOT JUST ONE TINY PART OF IT. DRAH has still got its capitals on…… ::) :o Why do you guys come to a forum if you are incapable of having a conversation and answering questions?

Banks are free to do almost as they please. It is a business, it is meant to make profits for it's share holders. We are only beholden to them because we have created the cashless society. No pay packet, no cash in the pocket and no government bank to make low cost savings accounts viable. Big banks are dam near loosing money on the mum and dad savings account. They cost heaps to run when you want profits. The money comes in pay day and is probably gone a couple of days later. I don't think the banks would actually care less if there was a government bank with cheap savings account, it would save them the cost.

nairbe wrote on May 24^th, 2012 at 5:42pm:

bobbythefap1 wrote on May 24th, 2012 at 5:15pm: FriYAY wrote on May 24th, 2012 at 3:57pm: bobbythefap1 wrote on May 24th, 2012 at 10:58am: Andrei.Hicks wrote on May 23rd, 2012 at 9:38am: bobbythefap1 wrote on May 23rd, 2012 at 9:37am: Banks have no obligation to get in line, we have given them their power and allowed them to control us. It is our the peoples obligation to stop them, monitor them and tell them where to go. A normal society would have already done so. Such as? Name me a country that isnt a dictatorship that has pulled their banks into line. HOW ABOUT YOU DONT ACT LIKE YOU ALWAYS DO AND ACTUALLY RESPOND TO THE BULK OF MY POST NOT JUST ONE TINY PART OF IT. DRAH has still got its capitals on…… ::) :o Why do you guys come to a forum if you are incapable of having a conversation and answering questions? Banks are free to do almost as they please. It is a business, it is meant to make profits for it's share holders. We are only beholden to them because we have created the cashless society. No pay packet, no cash in the pocket and no government bank to make low cost savings accounts viable. Big banks are dam near loosing money on the mum and dad savings account. They cost heaps to run when you want profits. The money comes in pay day and is probably gone a couple of days later. I don't think the banks would actually care less if there was a government bank with cheap savings account, it would save them the cost.

The difference between a regular business and the central banks is that the banks control the system under which their business and all other businesses operate.
While for most large corps. the shareholder thing is true, the large banks serve another purpose altogether as they control the system which makes it possible for people to invest in the first place.
The cashless society is more dangerous then a thousand man army and the system that defines what 'cash' is, is even more dangerous.
Banks and the financial system are a scam and work on many other criminal processes such as money laundering by the financial corporations.
There are already credit unions which are 100x better then banks in every way (even tho they still work off the same corrupt system) and most people wouldnt even know they exist. Its like buying a car made from wood for $10000 when you could buy a high quality car for $5000, and really goes to show the power banks have over society.

bobbythefap1 wrote on May 24^th, 2012 at 5:50pm:

The difference between a regular business and the central banks is that the banks control the system under which their business and all other businesses operate. While for most large corps. the shareholder thing is true, the large banks serve another purpose altogether as they control the system which makes it possible for people to invest in the first place. The cashless society is more dangerous then a thousand man army and the system that defines what 'cash' is, is even more dangerous. Banks and the financial system are a scam and work on many other criminal processes such as money laundering by the financial corporations. There are already credit unions which are 100x better then banks in every way (even tho they still work off the same corrupt system) and most people wouldnt even know they exist. Its like buying a car made from wood for $10000 when you could buy a high quality car for $5000, and really goes to show the power banks have over society.

I wasn't opposing your position rather pointing out that banking is business and will work as a business. Business, government and the corporate set care not for the community. They are convinced that what they do if for the good of the community and that we would all be much worse off without them. Hense their incredulous indignation when challenged. Just look at the way Andrei posts. He really thinks he is carrying the world with his big pay packet and corporate bonus.

Bobby. wrote on May 23^rd, 2012 at 9:38pm:

freediver wrote on May 23rd, 2012 at 9:01pm: There is no need to force the banks. Just shop around. What about the new 5th pillar? http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html Quote: WAYNE SWAN is poised to unveil controversial measures to create a fifth pillar of the banking system using the muscle of the $73 billion credit union and building society industry. It is a move that would create a new force in banking and put downward pressure on home lending rates. The Treasurer's plan would address rising pressure on the government to rein in the big four banks following their super-sized interest rate increases last month. Read more: http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html#ixzz1vgxvY1X3

No need. There is already plenty of competition. It is a long time since I used the big 4 and I cannot understand why anyone would. You get much better deals with other banks.

freediver wrote on May 25^th, 2012 at 6:30pm:

Bobby. wrote on May 23rd, 2012 at 9:38pm: freediver wrote on May 23rd, 2012 at 9:01pm: There is no need to force the banks. Just shop around. What about the new 5th pillar? http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html Quote: WAYNE SWAN is poised to unveil controversial measures to create a fifth pillar of the banking system using the muscle of the $73 billion credit union and building society industry. It is a move that would create a new force in banking and put downward pressure on home lending rates. The Treasurer's plan would address rising pressure on the government to rein in the big four banks following their super-sized interest rate increases last month. Read more: http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html#ixzz1vgxvY1X3 No need. There is already plenty of competition. It is a long time since I used the big 4 and I cannot understand why anyone would. You get much better deals with other banks.

The idea is that the 5th pillar could be Govt. guaranteed but
the 4 pillars wouldn't be.
That would give some real competition.

Bobby. wrote on May 25^th, 2012 at 8:26pm:

freediver wrote on May 25th, 2012 at 6:30pm: Bobby. wrote on May 23rd, 2012 at 9:38pm: freediver wrote on May 23rd, 2012 at 9:01pm: There is no need to force the banks. Just shop around. What about the new 5th pillar? http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html Quote: WAYNE SWAN is poised to unveil controversial measures to create a fifth pillar of the banking system using the muscle of the $73 billion credit union and building society industry. It is a move that would create a new force in banking and put downward pressure on home lending rates. The Treasurer's plan would address rising pressure on the government to rein in the big four banks following their super-sized interest rate increases last month. Read more: http://www.smh.com.au/business/bankers-beware-fifth-pillar-on-its-way-20101201-18gp2.html#ixzz1vgxvY1X3 No need. There is already plenty of competition. It is a long time since I used the big 4 and I cannot understand why anyone would. You get much better deals with other banks. The idea is that the 5th pillar could be Govt. guaranteed but the 4 pillars wouldn't be. That would give some real competition.

The problem is that as all before them they will eventually get bigger and hungrier then forget what it was they were built on. Then hey presto you have another greedy pillar of banking.

Quote:

The problem is that as all before them they will eventually get bigger and hungrier then forget what it was they were built on. Then hey presto you have another greedy pillar of banking.

Stop being so negative.
The 4 pillars run a cartel where they all have the same deals.
We need competition to solve it.

Bobby. wrote on May 25^th, 2012 at 8:40pm:

Quote: The problem is that as all before them they will eventually get bigger and hungrier then forget what it was they were built on. Then hey presto you have another greedy pillar of banking. Stop being so negative. The 4 pillars run a cartel where they all have the same deals. We need competition to solve it.

Agreed so we don't need another bank we need lots of banks to have real competition.

nairbe wrote on May 25^th, 2012 at 9:26pm:

Bobby. wrote on May 25th, 2012 at 8:40pm: Quote: The problem is that as all before them they will eventually get bigger and hungrier then forget what it was they were built on. Then hey presto you have another greedy pillar of banking. Stop being so negative. The 4 pillars run a cartel where they all have the same deals. We need competition to solve it. Agreed so we don't need another bank we need lots of banks to have real competition.

Maybe we need better banking regulation to stop the
banks making super profits from hard working battlers?

Bobby. wrote on May 26^th, 2012 at 10:58am:

nairbe wrote on May 25th, 2012 at 9:26pm: Bobby. wrote on May 25th, 2012 at 8:40pm: Quote: The problem is that as all before them they will eventually get bigger and hungrier then forget what it was they were built on. Then hey presto you have another greedy pillar of banking. Stop being so negative. The 4 pillars run a cartel where they all have the same deals. We need competition to solve it. Agreed so we don't need another bank we need lots of banks to have real competition. Maybe we need better banking regulation to stop the banks making super profits from hard working battlers?

Now we get to the basic problem. We used to have regulation, it ensured that the banks made enough capital available to support the mortgage requirements and then fix that rate so it was affordable. This served to slow investment and restrict the banks from growth in business so business had to source it's capital from OS at higher rates. Venture capital was hard to get and development stifled.
Keating deregulated the banks to a great degree but certain safe guards were left in place like the capitalisation required and Government secured savings accounts. The banks have prospered since but the have lost their sense of community in what they are doing. They are simply a business now with no responsibility to the community for anything.