Friday, January 11, 2008
Wayne Swan calls the Banks greedy.
Click to enlarge
He isn't the first and certainly won't be the last. And, while he is simply speaking to the electorate, he is right.
For years now the banks have consistently improved profits by growing their business and by improving their margins. I'm not critical of them doing that, we all try to do it. What concerns me is their attitude. They seem to believe that when they are improving margins that this is their money, and that they retain all of the gain as profit. There was never any intention to pass some of the gain onto their customers, by way of reduced interest rates.
However, when margins weaken, as they are now, they argue that this is a cost that needs to be passed on to their customers.
Looks like having an each way bet to me.