ACCC questions Westpac/St.George decision
By
Andrea Lavigne
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7/12/2009 8:00:00 AM
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4
comments
ACCC chairman Graeme Samuel has admitted that the timing of the Westpac/St.George merger might have influenced the regulator's decision.
"There's even a question ... that if Westpac were to seek to acquire St.George today, rather than prior to the global financial crisis, whether we'd have the same view as what we had back then. I don't know the answer to that but I raise it as a question," he told the ABC.
He also admitted that competition has reduced since the withdrawal of foreign banks and non-bank lenders.
"Anyone would say that as a result of the trauma, the shock of the global financial crisis, we've got a whole different banking and finance market in this country to what we had before," he said. "There is less competition, there are less competitors."
Samuel added that he would "never say never" to the prospect of future deals between a major bank and a regional lender, however, he said it would be a "difficult ask".
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Latest Comments
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4
comment(s)
Keith Bridges on
07 Dec 2009 03:05 PM
What an irresponsible response from Mr Samuals. The deal has been done, intergration finalised over 12 months ago, so what is the point of speculation after the event. Jobs have been lost and competition reduced, these issues were on the table when the proposal was originally blessed by ACCC. What has changed?...
mart on
07 Dec 2009 03:44 PM
the ACCC took the line that SGB and Bankwest were in serious risk of failing and a merger was a far better option than having to go down the path of rescuing them with public money. In my opinion I think Bankwest would have maybe failed but they should not have let the St.George one through as they woould have been OK. Too late now. I think someone should start a new ADI with the backing of the treasury for say the first 4 years to compete with the majors.
mart on
07 Dec 2009 03:47 PM
the ACCC took the line that SGB and Bankwest were in serious risk of failing and a merger was a far better option than having to go down the path of rescuing them with public money. In my opinion I think Bankwest would have maybe failed but they should not have let the St.George one through as they woould have been OK. Too late now. I think someone should start a new ADI with the backing of the treasury for say the first 4 years to compete with the majors.
Martin J. Rollins ALMO Australia on
07 Dec 2009 04:51 PM
Have to agree with Keith Bridges on this.
Mr. Samuels decided early-on to keep quiet about the Westpac/SGB merger.... it strikes me as odd that he should come out now and ostensible say ''whoops, got that wrong folks''.
Well unlike Wayne (The Treasurer we needed to have) Swan; atleast Mr. Samuels can admit that he mucked up.
... now if only we can get the rest to fess up to their banking guarantee bungles...... but of course this would ultimately lead to admitting that a huge deficit currently masquerading as Federal Stimulus is in actual fact borrowings.... whoops..... then Swan would be forced to explain his repayment plan (That occurs after he is pensioned off).