Blog article
See all stories »

Class Actions Against Aussie Banks Over No Rate Cut

Law firms in Australia are lining up with thousands of eager participants wanting to take the Australian banks to court over their general failure to pass on the latest Reserve bank interest rate cuts. Talk shows and radio are alive with the latest sign that banks aren't too popular here. It appears that bank popularity and trust is approaching a new low with the latest issues.

The banks passed on several rate cuts, some in part, but Australian rates are still ridiculously high given current income and real estate prices. The price of Australian real estate has been unsustainable for some time now, driven by a horde of real estate spruikers and banks using third party mortgage originators to market sub-prime loans to a brain-washed public. the real estate spruikers have hardly paused for breath in their spiels encouraging Australians to buy at a time which must be considered close to lunacy, and it shows the real estate sales crews up for what they are, a bunch of shonksters and con-men without a clue. Australia doesn't have the same jury system as the US although the coming law suits may provide some amusement. if not for the banks.

The government will come under serious pressure to remove their guarantees, which I might add, are the worst deal for the average Australian. I can't imagine anyone giving me an open guarantee for my business without getting a slice of the possible upside and I predicted the current crash well before the rest of the dreamers so I would have to be a better bet. I think the taxpayers will look at some other court actions designed to get the taxpayer a little of that upside the banks are making, solely because they have the government guarantee. Of course we know that as soon as the guarantee is removed, the runs will start. So be it.

The Commonwealth Bank was government owned until fairly recently and it only takes a stroke of a pen to put it back that way. The fees have risen beyond belief and the general state of service has declined since privatisation. If the banks don't reduce rates simply withdraw their guarantee.

Remove the guarantees, and see who remains. Perhaps a single government owned bank? The public appears to have had enough of the bank's tactics and practises and we could see some big changes in Australian banking. It may be the next big election issue.

Australia has long had the most profitable banks in the world, due to government protection and a completely fake 'level' playing field. Some politicians thought this was something to be proud of. We also have the highest fees and charges and penalties. Not something to be proud of and any politician with leanings towards the banks will face a sound defeat at the next elections. Whilst Australia needs a healthy commercial banking industry, the retail consumer banking business should be opened up foreign to competition and we'll see some real cost savings for businesses and consumers.

The current arrangement sees a giant parasite on the back of every Australian. Talk about shooting themselves in the foot.

2302

Comments: (0)

Retired Member

Member since

19 Mar 2009

Location

Blog posts

6,023

Comments

6,224

This post is from a series of posts in the group:

Whatever...

A place to share stuff that isn't at all fintec related but is amusing, absurd or scary.


See all