Swan adamant that Westpac got it wrong
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BN
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18/12/2009 8:45:00 AM
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4
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Federal treasurer Wayne Swan has refused to concede that Westpac had any justification for raising its interest rates way above the RBA increase.
In an interview on ABC radio, Swan was asked if he'd been a bit too tough on the bank in light of it continuing to lend during the GFC while other banks had closed shop, but the treasurer refused to back down.
"I most certainly haven't been too tough. The decision by Westpac had no justification at all in my view, and I think we've seen in some reportage in the last 24 hours the fact that the margins for banks like Westpac have in fact increased in recent times. In my view there was no justification for Westpac to move so aggressively above the Reserve Bank decision," Swan said.
And he responded equally vehemently when comments made by Westpac chairman Ted Evans (directed at Swan) that "correct decisions are sometimes unpopular" were repeated by the interviewer.
Swan agreed that correct decisions are sometimes unpopular, but said the Westpac decision "wasn't a correct decision".
"It is very unpopular because it was a wrong decision."
Related stories:
Rate hikes 'hard to justify': RBA - The Reserve Bank of Australia has challenged bank rate hikes by pointing out that profits from lending have returned to pre-crisis levels.
Latest Comments
Total:
4
comment(s)
Derek Miles on
21 Dec 2009 10:37 AM
Yes, and remember that Westpac pay the lowest commission levels to Brokers. And they also state that their level of service is higher - but we are yet to see this.
Broker on
21 Dec 2009 11:18 AM
Best Mr Swan remains silent on this topic, it''s clear that the banks really don''t give a toss what he thinks. Action speaks louder than words rhetoric Mr Swan.
Jerry Gibb on
21 Dec 2009 11:29 AM
Mr Swan put your money where your mouth is and get stuck into making these greddy organisations tow some sort of line. Put rates up over the odds pay the CEO another M$5 go figure that one out. WQhose paying that the Banks custopmers are. Higher funding cost what a load of rubbish!!!!!
Bob on
21 Dec 2009 08:49 PM
Dear Broker ask the "MAD MONK" what he would do?
He might even ask you to the "MAD HATTERS TEA PARTY''