Westpac a serial offender: Swan
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BN
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24/03/2010 8:00:00 AM
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Federal treasurer Wayne Swan has again slammed Westpac, claiming the bank has become a “serial offender” in “taking its customers for a ride”.
Referring to Westpac’s latest decision on credit card interest rates and its supersized home loan rate hike in December, Swan said this was “exactly why people don’t like the big banks”.
At 7.01%, Westpac’s variable home loan rate is the highest of all the major lenders. By contrast, Credit Union Australia announced yesterday it was cutting its variable rate by 25 basis points, opening up a yawning gulf between it and the big banks. CUA’s standard variable rate is now 6.37%, 0.64% lower than Westpac’s.
A professor of finance at the University of NSW, Fariborz Moshirian, told The Australian Financial Review that there was in fact no justification for extra rate rises by the banks, as international credit markets had settled in recent months.
Latest Comments
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Melb Broker on
24 Mar 2010 11:31 AM
If CUA can keep their rates low, so can WBC and the others. The BS argument regarding funding costs is very quickly running out of steam and CUA''s decision proves it.
I hope WBC fall in a screaming heap. As far as Wayne Swan is concerned - he is still a cowardly turd when it come to the banks. Grow a backbone Swan and do what we pay you to do. Remember who pays your salary - the Aussie public.
Positive Broker on
24 Mar 2010 01:54 PM
I welcome Westpacs comments particular their recent concerns about the need to raise rates again to meet the cost of funds. Please Westpac, just do it. The sooner you do it, lose all your customers and go out of the business the better. Then I won''t have to worry about paying $500 to get reaccreditted to sell your uncompetetive products.