Evil Anna eggs on criminal banking

It’s the bonfire of the vanities now, from Evil Anna at the ABA on APRA’s interest-only crumble:

[it] will allow all banks to offer more choice for customers, leading to an increase in competition across the industry, particularly for smaller and regional bank.

While banks will continue to lend prudently, today’s decision will mean all banks can offer more choice for customers who are looking to buy a house or apartment.

Increased competition across the industry will mean customers have more ability to shop around for the best deal for them when looking at an interest-only home loan.

Unless or until the Hayne RC is thoroughly neutered I maintain that the impact will be marginal.

Comments

    • Perfect! An Indian immigrant rejoices that “the banks are now open for business” as he and his fellow migrants get ready to blow another bubble and gazump native Aussies out of homes.

      Hoo boy, this is inflammatory stuff

    • What’s the matter with these people? Don’t they know that spouting sh!t like that means that they go on my list?

  1. Anna Bligh? Anna Bligh? The name rings a bell. Was she once an ALP premier in QLD who we were told believed in something? Good to see that she jumped into bed with the banks just like Bob Hawke, Paul Keating and many others of the ALP cohort using the same revolving door.

    What about the disgusting Paul Howes? Once National Secretary of The Australian Workers’ Union and member of the Democratic Socialist Party and Resistance who’s now a partner at KPMG where government contracts fly in the door like seagulls offered chips.

    Until such career plans are stopped dead in their tracks along with political donations expect nothing from the ALP. They are using the same revolving door and are far bigger hypocrites than those of the Right. All of their nice sounding ideology should be treated as marketing spin until that point they fill in the stinking cesspool that they have helped to create. With the revolving door operating at full speed only the seriously deluded would get excited about any of the major parties. Because they ALL attract self-interested sharks after a feed.

    • I’m not sure, mate. I suggest you go ask Mike Baird, Former Liberal Premier of NSW and soon-to-be CEO of NAB. If Baird doesn’t know, maybe former Liberal Prime Minister of Australia, Malcolm “The Bankster” Turnbull, will have some details on the matter.

      • Yep – I wonder if anyone can see a pattern forming here? It is indeed a staggeringly long list. The taxpayer has paid for politicians to make contacts that are useful to the banks to lobby for their interests that are against the interests of the public.

        Simple to fix. Every year you accumulate in parliament is the same number of years you are forbidden to work for a financial institution or use those contacts to make a living. Done.

      • True, though I’d go further and say never allowed to work in a financial institution or job related to their influence as a public official. We have enough intelligent people in this country that we don’t need former politicians filling these roles. They can retire on their fat pensions (purpose of said pension) or seek a less compromising position within society.

      • I agree. But we will get the usual argument about the ‘vast pool of talent going to waste’ and have to set up an authority to monitor abuse of this simple principle as they set up ‘consultancies’ left right and centre.

        Community service as an ethic is dead, along with public interest and needs to be resuscitated. It’s kind of funny how the Hawke/Keating government killed it and led by example concerning how to get your snout in the trough. It is only in reflection that this is clear to me – the moral decay of the Left’s principles began here in the age of “reform”. It is a not a conclusion I have enjoyed reaching as I feel the rot has spread widely.

      • “Simple to fix. Every year you accumulate in parliament is the same number of years you are forbidden to work for a financial institution or use those contacts to make a living. Done.”
        Now all you have to do is get the politicians to apply it to themselves. That ought to be easy.

  2. This rhetoric makes me ill. The constant reference to competition and choice is garbage! The same dribble came out of the FSI, and every review before that. The is, as MB noted, a panic button measure to try and entice more investors into the market to stave off crashing prices. Why would you invest of the outlook is so bleak? Maybe because you will save 10, 20, 30 bps – I don’t think so!!!

    • I’ve had to wipe the chunks of carrot off the screen as well. It’s the same well regurgitated neoliberal crap that began the disaster. The only true competition and choice was when a publicly owned bank existed.

  3. I have to think this is to avoid the “interest only reset” rather than take on new borrowings. They said as a followup in an article I read about this today that as long as they don’t see high growth in these mortgages they won’t re-enforce the cap. What that tells me is that they may distinguish new IO loans (which are a stability risk if more people take them on) vs refinancings (are a stability risk if people can’t rollover their IO loan). In the end if the aim is to stabilize prices either way makes kind of sense. Maybe that’s what APRA have communicated to the banks?

      • Agree. This is all about the IO reset. Banks are still on notice from APRA – no NEW irresponsible lending. But rolling over the sins of the past is fine.