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Australian Banks practise Financial Coercion via Penalties and Fees
by krill Thursday, Feb 7 2008, 11:06am
national / social/political / commentary

In an environment of deregulated, free market capitalism you can’t scream laissez-faire and implement constraining, draconian financial policies on the public, which is exactly what deregulated Australian Banks and other local Financial Institutions are doing!

Deregulated Australian Banks have become so spoilt, indolent, lazy and slothful they resort to parasitic fee structures and penalties to gain easy income and compensate for their lack of trading skills – it certainly beats working for a living!

It may be time for governments to rub the noses of the banks into their own incompetence, need we mention the cotton-candy, bank induced, FAILED credit economy or the success of REGULATED economies in Asia? Perhaps it’s time that banks again learnt to work for a living like the rest of us; for banks that is financial trading in a very competitive “laissez-faire” market. It’s a hard life and no one, especially the parasitic banks, deserves an easy ride on the backs of Mr and Ms average Australian.

The outstanding successes of regulated economies seem to have been overlooked by our government leaders – I hesitate to use the term our ‘representatives’ for obvious reasons. Both the Queensland Treasurer and Prime Minister seem oblivious to the successes of Asian REGULATED (hint) economies, which may explain the inaction on regulatory policies?

The banks would certainly lift their game under threat of regulation! In other words perform and build on trading skill not parasitic penalty and fee structures or be forced to perform by regulatory pressures – a simple strategy that even Queensland politicians should understand!

But of course we know why our ‘highly competent brave and visionary’ politicians are paralysed with fear – they are inept dunces that have no idea how to GOVERN a nation! That is why they are placed in power by BIG FINANCE and other vested corporate interests. Why else do we cling so tenaciously to the FAILED economic model of laissez-faire capitalism? Neither major political party in Australia has any solutions, as both take orders from Big Business, isn’t that right Mr Allan ‘$100m’ Moss?

Faced with increasing inflationary pressures the government has been directed (ordered) to apply pressure on PUBLIC SECTOR fiscal policy when reality dictates/demands that pressure be applied to the PRIVATE SECTOR – you do not bandage your arm if the bleeding wound is on your leg, Kevin! Show some decisive leadership you bereft, no-talent, timid little turd!

Regulate and apply policies that distribute wealth throughout the entire economy/nation/community – it is economic suicide for nations to concentrate wealth in the fewest possible hands!

The people placed you in office as THEIR representative, Kevin. If your are unable to fulfil your obligation to the people and GOVERN effectively then bloody-well resign, you petty, little bureaucrat!

See also:

http://cleaves.zapto.org/news/story-899.html

COMMENTS

Germany's shares slide as Deutsche Bank chief warns of 'tsunami' from monoline woe
by Christine Seib via rialator - Times Online Thursday, Feb 7 2008, 6:57pm

The chief executive of Germany's largest bank sent the country's stocks into retreat yesterday after predicting that troubles in monoline insurers could be a “tsunami” comparable to last year's sub-prime mortgage crisis.

Josef Ackermann, chief executive of Deutsche Bank, said that recent downgrades of the ratings of monolines, which provide bond insurance around the world, could have a knock-on effect similar to the collapse of America's high-risk mortgage market last year.

“It could be a tsunami-like event comparable to sub-prime,” Mr Ackermann said. His comments sent a chill through shareholders and the DAX index closed down 113.79 at 6,733.72

However, shares in Deutsche Bank closed higher after the bank reported better than expected figures for the fourth quarter of 2007. Pre-tax profits fell by 25percent to about €1.4billion (£1.04billion), beating consensus expectations, and the bank avoided booking any further writedowns on its sub-prime-related investments. The shares closed up almost 1 per cent at €74.97, as investors expressed relief that Deutsche Bank appeared to have escapted the credit meltdown relatively unscathed.

In the third quarter Deutsche Bank wrote down €2.2billion of assets hit by the US sub-prime mortgage market collapse.

Mr Ackermann said: “Those trading businesses in which we reported losses in the third quarter produced a positive result in the fourth quarter.”

Mr Ackermann, who turned 60 yesterday, said that fourth-quarter writedowns on leveraged finance business would be no more than $50million. However, he refused to rule out further losses. “Uncertainty remains as to how large the impact of the turbulence will be on global economic growth over the next few months and what writedowns will still be necessary on the books of the banks concerned,” he said. Mr Ackermann said that he expected the financial sector to stay unsettled for another six to nine months.

Deutsche Bank's corporate and investment banking business's pre-tax profit fall 43 per cent to €669 million in the fourth quarter. Pre-tax profits of the global transaction banking business rose 45 per cent to €222 million.

The bank reported a rise in loan loss provisions from €131million to €329million, mainly to reflect an expected shortfall from a single client.

Mr Ackermann reaffirmed a 2008 pre-tax profit target of €8.4 billion.

© 2008 Times Newspapers Ltd.

[The best advice Allan '$100m' Moss of the Macquarie Group has ever given the local investment community in Oz is via his personal actions; grab your money and run, NOW! Ed.]

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3330743.ece

Regulate PARASITIC Banks and eliminate ALL Fees
by hock Friday, Feb 8 2008, 6:16am

Prior to deregulation bank fees were virtually non-existent. Banks considered it a privilege to attract your custom. The arrogance and indolence of Banks since deregulation and parasitic fee introduction is no longer acceptable.

The following report indicates as much:

Exit fees should stay: bankers group

The Australian Bankers' Association has backed moves to increase competitiveness in the home loans market, but says exit fees should stay as they are.

In response to pressure from the Federal Government, the sector has agreed to make it easier for customers to switch banks.

The direct debit and direct credit arrangements of customers leaving a bank will be transferred to the new institution.

The association's chief executive David Bell says banks will also support an ASIC-led review of home loan exit fees.

"We're entirely happy to cooperate with that review," he said.

"We've already provided the government a lot of information on those fees, and we think that the review will show that fees that banks charge are fair."

He says one of the main difficulties people have when trying to switch is moving their bill-paying arrangements from one bank to another.

"We welcome anything that increases competition, competition is good, it makes us sharper, and it gives our customers a better service," he said.

Federal Treasurer Wayne Swan says the new measures to make changing banks easier for customers will maintain competitive banking practices.

Mr Swan says while the changes will not bring interest rates down, they will give consumers more opportunity to make sure they're getting the best deal.

"I'm determined to make sure the banking system is as competitive as possible so that if people want to shift their account or they are disgusted with their bank, then they can do that without the hassle and obstacles that exist at the moment," he said.

Consumer group Choice has also welcomed the Government's new measures.

Spokeswoman Elissa Freeman says consumers have long complained about the difficulties they face when changing banks.

"One of the things that we regularly see is that consumers are not willing to change bank accounts because of the perceived hassle," he said.

"What this package does is it makes it much more simple and straightforward for consumers to change their everyday bank account."

Ms Freeman says she believes the review will be effective.

"I would hope that exit fees do come down, they have kept up significantly in recent years," he said.

"On top of that, [I welcome] any light that can be shed on to the cost incurred by lenders when establishing a loan, and what is in fact a reasonable fee."

http://www.abc.net.au/news/stories/2008/02/09/2158419.htm