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It’s time for Julia to get medieval on the banks’ asses

Joe Hildebrand

by Joe Hildebrand

04 Nov 05:45am

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Filed under: Banks, Commonwealth Bank, Interest Rates, Mortgages

84 comments

There’s an old joke about what the difference is between a dead kangaroo on the road and a dead banker. There are skid marks in front of the kangaroo.

Warren Brown in The Daily Telegraph.

This week I am starting to wonder or not this is really a joke or the results from an experiment actually conducted.

If the last few days have brought any good news at all, they have at least confirmed Australians’ long-held suspicion that bankers are an evil clan of blood-sucking parasites with the social conscience of Genghis Khan.

Although of course I exaggerate – Genghis wasn’t that bad.

Let’s put it in some context.

This week’s massive rate slug by the Commonwealth Bank comes just after it announced a record profit of more than $6 billion last year.

And just to really ram it home, this profit was fuelled by a massive 41 per cent increase in income from on home loan interest, which surged $638 million to a whopping $2.21 billion.

Then – in the middle of Australia’s greatest cultural celebration no less, and at the same time as every patriotic punter is mourning the loss of the greatest horse since Phar Lap – the CBA announces that it will almost double the official rate rise and whack its customers with almost half a per cent more on their loan.

Indeed its unseemly rush to be the first bank to announce such a hike may even have been driven by the hope that if they did it on the same day of the Cup their greedy cash gouging might be buried by the racing coverage.

It is such an extreme, cruel and unnecessary move that it is almost as though CEO Ralph Norris has gone out of his way to become a pariah.

“Look everybody,” he seems to be saying. “I’m the baddest bad-ass in town.”

Now this sort of behaviour might be kind of sexy if you’re an African-American vampire hunter who knows ninja moves, but not when you’re an extravagantly-paid middle-aged New Zealand businessman.

And just to complete the picture, just last week this same bloke actually had the nerve to say that suggestions that the CBA would be the first bank to increase rates was all a media beat-up.

Last Tuesday he tried to discredit the media who suggested this, saying:

“That particular article, which I was quite forthright in saying that I had flagged interest rate increases and that I’d be the first bank to increase, I think this has got a bit out of hand and I think some of the media have to take responsibility for that – this has become a media feast.”

Well it’s sure as hell a feast now Sir Ralph, and the main course is your head on a plate.

The only good news about Sir Ralph’s comprehensive boning of his 11 million customers is that in true Shakespearean form his shameless greed might yet have some positive results.

One is that other banks now have the chance to win countless CBA customers merely by just passing on the Reserve Bank’s official rate increase. Any good Christian soul can only pray that there is a stampede of Commonwealth borrowers fleeing the bank in much the same way that tourists with chocolate in their pockets flee grizzly bears.

Another is that the bank might finally dump its offensively pretentious “dare to be different” ads, which make me want to vomit blood every time I see one on the television. If there is anything more deeply nauseating than an adman saying to you in your own lounge room “look how clever I am” I am yet to experience it.

But lastly and most importantly the Federal Government now has a loaded shotgun to blast these filthy trolls back under the bridge from whence they came. It is now clear that banks cannot be trusted to do the right thing, any more than a junkie pickpocket with a gambling problem can be trusted to mind your wallet.

Ralph Norris has given the Government every political, social and economic reason it needs to stop banks from gouging money out of their customers in the same pitiless way with which a psychopath pulls wings off flies.

Julia Gillard would have the support of the Greens, the independents and, thanks to Joe Hockey, the Coalition. It is both desirable and doable and it would finally give her the chance to show some guts, some strength and some principle.

She should show the banks what a real bad-ass looks like.

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84 comments

Show oldest | newest first

    • Eric says:

      05:18am | 04/11/10

      Indeed, the time is right for Julia to make a stand. Let’s see what she’s made of.

      Reply

    • Dash says:

      08:24am | 04/11/10

      Eric, she can start by looking at her government’s policies. It is the ALPs handling of the economy which is driving up interest rates and cost of living expenses. Perhaps she should start there? Drop the inflationary policies and stop the reckless spending might be a good start.

    • iansand says:

      08:47am | 04/11/10

      I am getting sick of the Attack Bloggers treating me as though I have the attention span of a lobotomised gnat.  Do you people really think we are stupid?  Do I need to remind you that official interest rates are still lower than when your beloved demi-god was in power?

      I am not a supporter of either party, but the constant tirade of bullshit and misinformation that pours off the keyboards of the usual suspects is risible.

    • incervisiveritas says:

      10:02am | 04/11/10

      “attention span of a lobotomised gnat”
      That’s very funny!
      “I am not a supporter of either party”
      That’s hilarious!

    • Dash says:

      10:47am | 04/11/10

      iansand. The cash rate under Howard was at one stage 4.25% and under this government and seven rate rises this last year, is now 4.75%. Under ALP demi-god Keating it was as high as 17.5%.

      The point I make is that the government has contributed to the pain and is following policies that will make things worse not better. They promised to cut living expenses across a range of areas and delivered the opposite. At what stage will you recognise their failures?

      The second stimulus overheated the economy, a carbon tax will be inflationary. Inflation is a concern that the RBA noted is adding to rising interest rates. That’s not bullsh!t, its fact.

      Happy for you to back up your bullsh!t claims iansand if you can. But where’s grocery choice, where’s fuelwatch, where’s the “cheaper better childcare”, where’s the “More affordable housing”? Rather than policies that do reduce our living expenses, this government is following policies that do the opposite.

    • Weary says:

      12:15pm | 04/11/10

      Iansand - if you’re going to accuse people of misinformation you should probably avoid providing a link that proves that the comments you’re arguing with are actually accurate.  As low as 4.25 under howard, as high as 17 under keating and currently 4.75.  As Dash may now say, you rest his case.

    • Dash says:

      12:22pm | 04/11/10

      iansand. Your link backs up everything I’ve said. Cash rate was 4.25% under Howard. There have been 7 increases over the last 12 months and it’s now 4.75%. Under Keating it was as high as 17.5%. No mis-information according to the RBA site.

      I have also made it clear that my point is the government has contributed to the pain and is following policies that will make things worse not better. Inflation is an RBA concern and things like the carbon tax will make it worse.

    • iansand says:

      12:52pm | 04/11/10

      That would be in 2001 and early 2002.  I’ll see your 2001 and raise you 2009. 

      A tip - make sure you don’t check official rates when Howard was Treasurer.  It will scare your socks off.  Fortunately he lacked the fiscal courage to deregulate home loan interest.  I had a business overdraft at the time, and it wasn’t pretty.  Rates were coming DOWN when Keating had his 17%.

      You people are quite, quite mad.

    • Dash says:

      01:42pm | 04/11/10

      iansand, my point has kind of been lost in your semantics now. 

      Where does this end? Where were rates headed when Rudd won the election? Was it Rudd or the GFC? Or is the GFC excuse only to be used for the bad things like record levels of foreign debt?

      Once again, I keep trying to say to you, the ALPs policies are driving up living costs despite their 07 promises and their spending spree and inflationary pressures are putting upwards pressure on interest rates. I suggested Gillard and the ALP should look at what they can do around some of their policy decisions to easy the burden. I am also suggesting that perhaps the 07 promises were a load of (to use your word) bullsh!t.

      It is quite, quite mad to blindly support failure after failure and lie after lie from this government.

    • Chase Stevens says:

      02:26pm | 04/11/10

      @Dash

      The RBA doesn’t seem to think Government spending is driving up interest rates at all… I think you should trust them more than the Lib/Nat Coalition

    • iansand says:

      02:50pm | 04/11/10

      Upwards pressure to historically normal rates.  Which gets back to my point about assuming that I have the attention span of a lobotomised gnat.

      Look!!!  Under the bed!!!  It’s a bogeyman.

    • James1 says:

      02:55pm | 04/11/10

      All this exchange does is prove two things:
      1) how funny partisan political types can be, and;
      2) that statistics really can be used to prove whatever you like.

      Thanks guys.

    • Against the Man says:

      06:05am | 04/11/10

      This whole banking/interest rate hoohaa has made fools of Gillard/Swany. This is the sweetest situation. Any thing Swany does means he admitts Joe Hockey was right and he was oh so wrong.

      I’ll bet Gillard and Swany won’t take on the banks. They will talk a lot of BS but they don’t have the guts to take on the banks.

      Enjoy your ALP votes my dear working families, the ALP cares as much about you as I do about dog poo.

      Gillard a loser for life and gutless wonder like her idol Ruddy.

      Reply

    • Sven Gali says:

      12:06am | 05/11/10

      Unsurprisingly for those of us who’ve read some of your comments before, the least ridiculous part of this one is your fetish for canine faeces.

    • Against the Man says:

      04:45pm | 05/11/10

      Oh dear is that the best you can do in the comments department? The suffering ALP voter are experiencing is so wonderful smile

    • Sven Gali says:

      09:28am | 06/11/10

      What suffering would that be ?

      If you prefer losing elections, that’s fine with us.

    • mags says:

      06:29am | 04/11/10

      Will never happen under this lot, I’ m afraid.  If Costello was still Treasurer, it would never have happened. Swan is a lightweight and they know it.  I hear that the banks take t in turn t be the bad guy that sets the trend for the other banks and it’s the CBA’s turn this time. I wonder whther the others will follow the script this time or think twice about it considering the back lash.

      Reply

    • The Badger says:

      07:47am | 04/11/10

      What would Costello have done oh oracle?

    • TimB says:

      08:16am | 04/11/10

      I think Mags point is he wouldn’t have had to do anything. The banks wouldn’t have had the guts to take Costello on & would have simply raised in line with the RBA.

      Now to be fair we can’t know for sure that this would be the case, but we know for certain that Costello was a far better Treasurer than the useless Swannie.
      As far as the banks are concerned, Swan is a toothless tiger. So there might be some merit to the theory.

      Unfortunately that’s all it is, theory.

    • Dash says:

      08:38am | 04/11/10

      Badger, he knew something about economics! He would not have overheated the economy with the second stimulus (which the LNP opposed I might add) pushing up interest rates for starters. He would not have followed policies of reckless and wasteful spending. He would not have followed inflationary policies like the carbon price and actively destroying the food belt along the Murray.

      Swan is a lightweight as mags says. The ALP seem to be confusing reckless spending with reform?

    • The Badger says:

      08:45am | 04/11/10

      I guess the smirk would have been enough to frighten the big bad bankers

    • MarK says:

      09:01am | 04/11/10

      The banks would have actually dropped interest rates if Costello was still Treasurer

      Ahhh memories. Costello would not have had this problem.

      Here are some more Costello facts

      Costello counted to infinity - twice.

      Costello once visited the Virgin Islands. They are now The Islands.

      Some kids piss their name in the snow. Costello can piss his name into concrete.

      Once, while having sex in a tractor-trailer, part of Costellos’ sperm escaped and got into the engine. We now know this truck as Optimus Prime.

      Costello can speak braille.

      Costellos’ tears cure cancer. Too bad he has never cried.

      Costello once won a game of Connect Four in 3 moves.

      Costello puts the “laughter” in “manslaughter”.

      Costello can delete the Recycling Bin.

      Costello owns the greatest Poker Face of all-time. It helped him win the 1983 World Series of Poker despite him holding just a Joker, a Get out of Jail Free Monopoly card, a 2 of clubs, 7 of spades and a green #4 card from the game Uno.

      Costello runs Windows Vista on his Etch-a-Sketch.

      Costello doesn’t read books. He stares them down until he gets the information he wants.

      Costello sleeps with a night light. Not because Costello is afraid of the dark, but the dark is afraid of Costello

      When Costello gives you the finger, he’s telling you how many seconds you have left to live.

      Costellos’ dog is trained to pick up his own poop because Costello will not take shit from anyone.

      Now that was a treasurer.

    • The Badger says:

      11:55am | 04/11/10

      Wayne Swann is much more better that Costello

      Wayne Swann can kill two stones with one bird

      Wayne Swann can slam a revolving door

      Wayne Swann destroyed the periodic table because he only recognizes the element of surprise

      if you have $5 and Wayne Swann has $5, he has more money than you

      Apple pays Wayne Swann 99 cents to listen to their songs

      there is no ctrl button on Wayne Swann’ computer - he is always in control

      Wayne Swann can do a wheelie on a unicycle.

      Wayne Swann eats the core of an apple first. 

      Wayne Swann can strangle you with a cordless phone.

    • MarK says:

      12:15pm | 04/11/10

      No he can’t.

      Costello is much betterer

    • Carmen says:

      07:42am | 05/11/10

      @ MarK and The Badger: you’re getting Messers Costello and Swan confused with Chuck Norris.

    • Penny says:

      06:36am | 04/11/10

      HEAR HEAR! Agree 100%

      Reply

    • Bron says:

      07:29am | 04/11/10

      I need people who know more about economics than me to advise me here: firstly, doesn’t better bank profits mean a better return for shareholders, ie, the superannunation returns of a fair chunk of the population? Secondly, how is it financially viable to “flee” a bank you have a mortgage with when you get slugged a massive amount for paying out your loan? What would the impact be of government regulation on this loan payout charge-if it was capped at something more reasonable, for instance 0.01% of total amount paid? Would this make it easier for people to change banks if they felt they were getting shafted (encourage competition for long term loan agreements), whilst still allowing the banks to have profitable shares?

      Reply

    • murray says:

      07:30am | 04/11/10

      Everyone seems to hate the banks, but no-one seems to mind borrowing money from them.  When you sign up for a variable rate loan, you can hardly complain when the rate varies.

      Reply

    • MarK says:

      07:58am | 04/11/10

      Dude,

      I have a 16 year old son. Likes t6o think he is an emo/goth/skater/coolio /etc etc/basically w/e flavour suits

      He alternates betweens hatred of me and complete disdain.

      Like me at that age he believes his mother and I are the stupidest people on the planet. Like I did he will see be amazed at how smart we seem to become on an annual basis hereafter.

      He also has no shame or indeed does not mind asking me for money.

      You don’t have the love the source to extract the cash.

    • iansand says:

      09:01am | 04/11/10

      A child wise beyond his years.

    • The Badger says:

      10:17am | 04/11/10

      mark
      sounds like you have a budding labor supporter there.
      When he is of age, he would probably be inclined to vote green, but would preference labor and tell you -  just to piss you off,
      nice one.
      As some one on here said the conservatives are their own worst enemy.

    • MarK says:

      10:37am | 04/11/10

      The wife votes Green. I still love her.

      The kid can do what he wants to. I actually never try and persuade them just answer any questions or point them to sources for info if they ask.

    • Ask a stupid question says:

      11:51pm | 04/11/10

      We might believe you if you ever extend the same courtesy to anyone else, Mark.

    • Shareholder says:

      07:44am | 04/11/10

      As a shareholder I would like to take this chance to thank the Commonwealth Bank for doing it’s legal duty and ensuring the best interests of the shareholders.

      To the Board,

      I expect that you will keep raising interest rates as far as people are willing to pay them. If people start fleeing, I would expect to see the CBA drop interest rates to stem the flow.

      Your sole duty is to the shareholders - keep doing the right thing, do your duty.

      Reply

    • James Hunter says:

      08:51am | 04/11/10

      Blogs like this sure bring out the liberal stooges and the soulless capitalists.
      B#$$%r the rest of the country, I’m all right.
      way to gooooooooo.

    • MarK says:

      10:38am | 04/11/10

      Someone said Liberal Stooge - did they want me?

      Oh I see. James was just tossing a shoe.

    • Ryan says:

      12:00pm | 04/11/10

      @James Hunter: yeah of course because its the liberals who aren’t the ones out there putting together plans to help us out regardless of the fact that they aren’t in power. Thank Joe Hockey for actually doing something for the battlers, not like these rich Labor pollies like Swann and Gillard who clearly don’t give a rats about us. Hell they can’t even keep their pre-election promises what chance do we stand.

    • Shareholder says:

      01:12pm | 04/11/10

      I think that’s the first time that I have ever been called a “liberal stooge”. I’m more commonly called a “tree hugging hippy”, I just think that it’s hypocritical that we complain when these institutions go broke and at the same time we complain when they maximise their profit.

      I’m simply observing that corporations, globally, (in every field) have a primary duty to their shareholders. If you think this is a problem have the courage to rip the guts out out of all corporations (including your employer), or prevent banks from being profit making institutions (see how long they last then).

      I can see the point that, like electricity, post and certain other essential services - privatisation was a bad idea. But the alternative is organisations like Telstra that are hamstrung by regulation and government interference (that is no applicable to their competitors) and as such are incapable of providing a reasonable service at a comparable price.

    • Schartos says:

      04:56pm | 04/11/10

      I thought oligopolies were illegal…

    • Lee Mazengarb says:

      07:01pm | 04/11/10

      Unfortunately, you the shareholder will not reap the rewards but.
      As a business owner and having worked for many companies and inside knowledge of boards and directors etc, the money never really goes to the shareholders, only a small portion my friends. The rest gets recycled through the company and often to the board themselves. Miscellaneous expenses come to mind, bonuses, pay rises etc.
      The real profit is way more then what they have announced.

    • Hermano says:

      07:41am | 05/11/10

      @ Lee: Duh. That’s why it’s called a net profit.

    • Andrew says:

      07:47am | 04/11/10

      What a load of rubbish Mr Hildebrandt. This debate is now absolutely hysterical. Yes, their headline profit numbers are big - but banks make about 1% return on assets. If you have $600bn in assets (as say the CBA does) then yes, you will make $6bn in profit. But these organisations are enormous. They lend hundreds of billions of dollars annually. They employ tens of thousands of Australians. They pay billions in tax which funds schools, hospitals etc.

      If you don’‘t like banks making profits, try going to a country where they make losses (like the UK) and see how the economy is going.

      And for all those whingers who say that ‘they’ll take “their money” somewhere else, they usually mean their home loan - which of course is not their money at all, it belongs to bank shareholders and debt investors. If you don’t like it, save more and borrow less - deposit rates are at their highest levels in decades.

      Get a grip.

      Reply

    • Genuinely Want to Know... says:

      12:22pm | 04/11/10

      Isn’t the banking problems in the US and UK a result of the mindless pursuit of profits of these banks at the expense of everyone else and common sense, plus questionable business and banking practices?

    • Dash says:

      08:07am | 04/11/10

      Why are people blaming the banks when the rising interest rates are a result of poor policy from the Gillard government? Interest rates are rising because the ALP has over heated the economy with the second stimulus and their reckless spending. Interest rates will also continue to rise whilst the government keeps upwards pressure on inflation. The carbon price, the Murray Darling policy and policies like increasing superannuation contributions by 3% are inflationary. They put upwards pressure on our cost of living and upwards pressure on interest rates.

      No point asking Julia to do something about the effect when she and the ALP are the cause!

      Reply

    • The Badger says:

      08:52am | 04/11/10

      I see
      It’s the ALP’s fault
      things would have been better under the smirking violet.

      Nasty ALP government causing the GFC, draining the water from our rivers and over cooking the dinner.
      I’m going to vote for someone besides labor next time.
      Maybe Greens or Independents?

    • Dash says:

      10:31am | 04/11/10

      The Badger, the point I am making is that the ALP government is following policies which are adding to the cost of living. And yet in 07 they campaigned on a platform of promises that were meant to reduce living costs for all Australians. As we know they didn’t deliver those promises. The second stimulus was un necessary and is now widely accepted as having over heated the economy. The ALP ridiculed the LNP for opposing the second round. This and the RBAs fear of inflation (carbon tax will only make it worse) is driving up interest rates.

      I didn’t say that the ALP was at fault for the GFC! But I will say, the Financial Services Reform Act inplemented by the Howard government, the surplus left behind, the elimination of Labors debt and China’s appetite for our resources should take more credit for the way we handled the so called crisis, than Swannies $900 handouts to dead people.

    • James Hunter says:

      08:09am | 04/11/10

      the banks are run by capitalists fro capitalists. how can we expect them to be socially responsibly?  The only way to control banks is to nationalise them. that or rafts of legislation..
      what amuzes me is the liberals the front for the capitalists urging the government to do the socialist thing and impose the governments will.
      1Problem is the people forget that the liberals are fo big business and for big business and they also forget the sole motivator of big business is profit profit profit. and who pays. us us us.

      Reply

    • Old Clive says:

      08:50am | 04/11/10

      Am I wrong?. Chifley wanted to Nationalise the banks, Menzies said NO No, won an election and formed the reserve bank and nationalised all monetary policy, by telling every one what they could or could not do with their money. Old people are pretty smart but are penalised in this country for paying too much tax when they were working. Pollies and Government workers receive a lot unfunded super but old workers get zilch.

    • The Badger says:

      08:56am | 04/11/10

      I didn’t forget Mr. Hunter
      I didn’t hear the whistling and wasn’t drawn to the dark side.

    • Mike L says:

      08:29am | 04/11/10

      This country has seen in the last few months what they can expect from Gillard in the next 3 years if this government lasts that long; pure and utter inaction. We have the worst PM in Australian history and many Australians are going to pay the price one way or the other for having her as PM.

      Reply

    • loxy says:

      09:33am | 04/11/10

      The problem with banks and their outrageous fees, rates etc has been around a long, long time and I didn’t see Howard having any impact on this in his 11 years in power. Reality is, no government (no matter what party) has ever had the balls to take on the banks and I doubt any ever will.

    • Carl says:

      10:03am | 04/11/10

      Gillard has no balls period unless you know something we don’t smile

    • MarK says:

      10:39am | 04/11/10

      “Gillard has no balls period unless you know something we don’t :D”

      Opinions on this vary quite a bit

    • Polywatcher says:

      08:51am | 04/11/10

      Surely the results of the mid-term election in the States should make Gillard, Swann et all sit up and take notice. Like Obama they arent interested in what the public has to say about NBN, Cap & Trade ( AKA Carbon Tax), cost of water, cost of electricity, BER, stimulus and general decision making.  They may well end up in the same position as Obama. Obama has learned his lesson after two years, we on the other hand have another couple of years of Gillard et al before they are shown the door.

      Reply

    • Sian says:

      09:09am | 04/11/10

      One thing I don’t understand about this is the outcry about the CBA raising its rates on Melbourne Cup day. Wayne Swan even said “I think Australians deserve a lot better, especially on Melbourne Cup day.” What? It’s not Christmas! It’s not a religious festival! Who cares? Is it because people would bet less on the day if they knew they had to pay more interest?

      Reply

    • Adam Diver says:

      01:52pm | 04/11/10

      Its because they are trying to hide the media coverage, much like ALP announcements on Friday Afternoons.

    • St. Michael says:

      04:03pm | 04/11/10

      Actually, given the attendance rate on Melbourne Cup day versus the average attendance rate at our favourite churches, together with the vast invoking of supernatural aid by punters as the said race was run, Sunday dress, and consumption of alcoholic-based beverages, I would posit that the Melbourne Cup in fact has more in common with most religious festivals than Christmas, Easter, and Good Friday combined.

    • Mike T says:

      09:14am | 04/11/10

      The reason people dont shop around for better mortgage deals, therfore, increase competition is the same reason why people dont consolidate thier super…...that being becasue the organisations make it a friggin NIGHT MARE to do so!!!!

      The fees and paperwork to change from you current lender is more then likely why the avergae Australain puts this in the two hard basket. When he is bent over by his current lender for an extra $50 bucks a month he can do one of two things. 1) spend two weeks on the phone dealing with banks to get out of thier current loan and establish a new one. He will be charged aroun $800 bucks and to save around $50 bucks a month. He then crosses his fingers that the new deal remains a better option for at least 16 months so that he comes out infront on the $800 he had to pay to swithch. 2) suck it up and continue to grab his ankles while the big four do thier work.

      So if the govt want to help, do something to stop the exit fees (on variable loans of course) and make this process of switching easy. Watch the banks come to the party once people become savy at chopping and changing thier loans when a better deal is on offer across the road and there is no gun to thier head to remain with thier current lender.

      I realise this is a simplistic attitude, but it seems logical to me.

      Reply

    • A Bob says:

      10:10am | 04/11/10

      Indeed. I don’t have a mortgage but I’ve been trying to consolidate my super for the last year and a bit. I’ve got the two biggest funds out of the way but can’t track down a smaller one. Now the ATO says I have to renew my application for a list of funds under my tax number because it’s been over six months since I lodged it. Oh, and you’d better hurry up because if you don’t get onto it ASAP we are going to steal it!

      I don’t understand why Australians are so apathetic about financial matters.

    • n_dude says:

      12:15pm | 04/11/10

      I absolutely agree. I switched loans last year to Westapc as they were agressively marketing rate discounts. Taking advantage of this I paid $2000 in exit fees in the expectation that this would be recouped within 12 months in the interest savings. Within a couple of months of signing up Westpac decide to up their rates above the Reserve increase and guess what the advantage was seriously eroded. I am now reluctant to switch loans again. Once bitten twice shy.

    • Jim says:

      09:42am | 04/11/10

      Everyone has a tax file number, a medicare number, drivers license number, mobile number…all these are used by a hundreds of different organisations to identify you as you. Why can’t we get a ‘borrowers number’? One that we can keep and jump from bank to bank as we see fit? If we want to switch from Optus to Telstra, we can do so, easily, and we keep the same number. It should be that easy! I’d happily sign up to a bank for 2 years knowing that at the end of the term I’m free to choose another lender.

      That, plus the government starting up their own bank again - giving employment to the 1000’s of unemployed bankers and utilising Australia Post branches…in these days of internet banking you don’t really need bank branches.

      Reply

    • Amy says:

      09:43am | 04/11/10

      You know what?  Call me a crazy Gen y-er without a homeloan, but I think this is a good thing for a large number of completely ignored Australians.  Many self-funded retirees or those close to retirement who are still working, who have never received a single dollar from the government, in the form of a pension or in the two stimulus packages which entirely ignored their existence.  The ones who lost half their life savings during the GFC when interest rates were cut and their chief earning capacity was destroyed.  The ones who bought their houses when interest rates were well into double figures and still managed to pay it off through sheer hard work.  The largest generation we have.  The cause of the ageing population.  The ones we should really be catering for now instead of ignoring…  Go Team Baby Boomers!!  How’s that Term Deposit looking?

      Reply

    • Amy says:

      10:02am | 04/11/10

      I’m going to clarify my previous statement with a preemptive reply…  I know the wrath is surely coming. 

      Yes the profits announced by the Comm Bank are obscene and $6bn is quite simply too much money for any organisation to not be passing on to its struggling consumers.  But interest rate rises work two ways, in borrowing and in savings, and I think that finally, self funded retirees who have saved their whole lives will finally get something back with the rate rise.  These are the people we need to look after, because the economy of this country is not at all prepared for the baby boomers to all retire at once and demand a pension.  Self funded retirees are not the rich we so often hear about, profiting from the money they have, they are hard working people who will take the toll off of the taxpayer with their own savings.  And many of them lost half of that in the GFC.

    • Rob Elliott says:

      10:14am | 04/11/10

      Why were interest rates put up so much by the CBA?
      Because the economy can handle it.

      Good use of Chuck Norris jokes in the comments too.

      Reply

    • MarK says:

      10:38am | 04/11/10

      Thank you.

      I like Chuck. :D

    • Fiddlesticks says:

      10:33am | 04/11/10

      So retail mortgage rates have now returned to something like normal after a two-year holiday created by the careful GFC management of successive Labor Governments.

      Plainly, any careful household, either mortaged or considering home pruchase, would have done the sums on their affordability. Any household with savings or investments in anything other than the purely speculative would have done the same.

      Micawber, really - those who took the trouble to do their sums are now in front, just a little.

      Not that you could guess that, from Hildebrand’s piece, which is pretty much the hyperbole of the high school debater. A blog troll, basically.

      What is the real story here?

      Banks are digging a hole for themselves, commercially and politically, with swingeing profits and swingeing exec salaries, possible beacause a responsible government used taxpayer funds wisely to backstop them.

      Time to give something back boys. Past time.

      Reply

    • Brian B says:

      12:33pm | 04/11/10

      “successive Labor Governments…...”

      You mean the first one that imploded during it’s first term and the second one that needed outside help to make up the numbers?

    • Mayday says:

      01:08pm | 04/11/10

      Thanks Brian B…...really enjoyed that comment!

    • newnewshound says:

      10:38am | 04/11/10

      This week’s stunt by the CBA is part of a dastardly plot in which the RBA & The Big Four Banks conspire to make Hollywood Joe Hockey appear relevant. (Great for long-suffering, starving shareholders too.)

      Reply

    • Eugene says:

      10:43am | 04/11/10

      Yes Jools and the Gang should act to regulate but the problem is that up until Tuesday, they were bagging the crap out of Joe Hockey for his suggestion that government should impose greater regulation on banks and should whittle away at the concept of a free market in the banking sector.  Hence they would look (yet again) like a bunch of hypocrites.  In this new parliament, it is a key opportunity for the Coalition to outshine the government by introducing legislation itself (which is most likely to be supported by Greens and Indies).

      Reply

    • Jim says:

      12:05pm | 04/11/10

      “Hence they would look (yet again) like a bunch of hypocrites”...has that ever stopped them before??

    • Aussie Wazza says:

      10:49am | 04/11/10

      ‘I believe that banking institutions are more dangerous to our liberties than standing armies.

      If the American (read any nation here) people ever allow private banks to control the issue (delete ‘the issue’) their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered’.
      Thomas Jefferson 1802

      Action is needed, not words.

      Every good Australian should, in the typical Aussie Aussie manner.

      A/ Stamp their foot.

      B/ Think (or even at a push, speak) ‘It’s not fair’.

      C/  Whine ‘THEY should do something’.

      I’m going back to bed.

      Reply

    • Mayday says:

      01:10pm | 04/11/10

      The new paradigm David, consensus at last? 

      They could all have a group hug outside the banks for the TV cameras.

      Reply

    • Sarah says:

      02:05pm | 04/11/10

      Hildebrand - you are GOLD. Nearly fell off my office chair laughing to the line “they have at least confirmed Australians’ long-held suspicion that bankers are an evil clan of blood-sucking parasites with the social conscience of Genghis Khan”

      Now that is AAAPPTTT!

      Reply

    • Catching up says:

      02:05pm | 04/11/10

      Murray, people hate banks because they have to borrow.

      Reply

    • Catching up says:

      02:08pm | 04/11/10

      “The banks would have actually dropped interest rates if Costello was still Treasurer”

      He did not seem to be able to prevent rises when he was treasurer.  This was in spite of having several years of surplusses.

      Reply

    • MarK says:

      04:02pm | 04/11/10

      Yes ....and the all the rest of my quotes and facts about Costello were to be taken literally as well >.<

    • Shawn says:

      03:16pm | 04/11/10

      The CBA wouldnt have dared do this when Costello was in the big seat.
      It defies beleif that Wayne Swan has gone 3+years without anyway laying a glove on him. He is a lightweight, and it just stands to show how badly Julie Bishop and big Joe hockey have performed in the shadow treasury portfolio.

      Reply

    • Just Sayin' says:

      03:30pm | 04/11/10

      “It’s time for Julia to get medieval on the banks’ asses.”  And it’s time we all remembered that we are not American, and we spell it “arses”.

      Reply

    • Michelle says:

      05:09pm | 04/11/10

      So the politicians won’t do anything and neither will the banks. Why doesn’t everyone who is 45 years old and under (ie those who have Super but can’t get their hands on it anyway) rush into the banks and take all their cash out. If the shares drop and super drops it won’t matter because it will have rectified itself by the time you can take your money out. That would really stuff up the banks I should think. If you have shares and a mortgage then I’m thinking that it’s better for your shares to drop and try to drive interest rates down so you should be part of the revolt too. Take out all your cash. What do you think? And I’m not taking about just CBA people, I’m talking about all the banks. Let’s not forget it was Westpac who did this last time so like someone said earlier they are in cahoots. We can’t sit around and wait for politicians to do anything - it won’t happen - They don’t want the grey brigade to panic about their super. Anyone up for it?

      Reply

    • SME owner of Perth says:

      01:17am | 05/11/10

      This is just the start.
      Grab a crystal ball & look into the future, today will be fairy tale stuff.
      Rates are on the up & there is little that anybody will be able to do about it though it might be the one thing thaty lowers peoples expectations, by that I mean that people may be more likely to stay in a job for an extended period of time due to the regular income rather that trying their hand in the market.. I feel really sorry for the people that have slotted themselves up for a 400 grand mortgage + the toy though I have no doubt that most will survive just like the rest of us that seen 17% we didnt enjoy it, but we managed.

      Reply

    • elias says:

      09:20am | 05/11/10

      Nothing will happen. Julia has said it herself that there will be no return to past regulation. Besides it was Labor which sold off the commonwealth bank and de-regualted the banks! Labor are just as big a troll as the big four banks! I doubt they will hurt their own kind!

      Reply

    • Matthew says:

      11:05am | 05/11/10

      It’s called a Fixed Interest Rate Loan guys…. DUHHHHHHHHHHHH!!!!!!!!!!!!!!!!!!

      Reply
 
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