Wednesday, December 16, 2009

Meanwhile Westpac says it "started 2010 with strong momentum across all our businesses"


It's in the slides prepared for today's AGM in Melbourne, which are on the ASX website with the Chairman's speech.

Ted Evans says:

"...we would do no favours to anyone by offering mortgages at rates that we know to be unsustainable.

Nor is it fair to other borrowers, such as small business owners, or even large project developers, to have their interest rates increased so that mortgage raes can be subsidised.

Nor is it fair to those who save to have deposit rates held down so that mortgage borrowers can he subsidised."

Two points:

- Given that increasing interest rates charged to "other borrowers such as small business owners, or even large project developers" is exactly what Westpac has done, bigtime (increasing margins actually) will it now give back those margin increases?

- Ted Evans is not seriously claiming that deposit rates are being --- or are in prospect of being --- held down is he? Some are higher than the cash rate!

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