"Westpac chief returns fire on rates"
|
Prev: Aldi tactics
Next: Boycott the big banks
From: B J Foster on 16 Dec 2009 15:30 chief executive Gail Kelly fired back: "We're paying much more for raising wholesale rates - about 10 times what we were paying before the crisis", she said. "In fact, our average wholesale term funding costs are around 80 per cent higher than they were a year ago". http://www.abc.net.au/news/stories/2009/12/16/2773898.htm?section=business Goodness gracious, that's the first time I ever saw a banker assert that 1.8 == 10. And I'm wondering whether it is wise to use a bank whose CEO struggles with arithmetic. Not to mention no mention of the fractional reserve system... Besides, who wants to be fired at by their banker?
From: David Clayton on 16 Dec 2009 16:17 On Thu, 17 Dec 2009 07:30:42 +1100, B J Foster wrote: > chief executive Gail Kelly fired back: "We're paying much more for raising > wholesale rates - about 10 times what we were paying before the crisis", > she said. > > "In fact, our average wholesale term funding costs are around 80 per cent > higher than they were a year ago". > http://www.abc.net.au/news/stories/2009/12/16/2773898.htm?section=business > > Goodness gracious, that's the first time I ever saw a banker assert that > 1.8 == 10. > > And I'm wondering whether it is wise to use a bank whose CEO struggles > with arithmetic. Not to mention no mention of the fractional reserve > system... > Well, the problem is that both statements refer to two totally different time frames, "a year ago" <> "before the crisis". -- Regards, David. David Clayton Melbourne, Victoria, Australia. Knowledge is a measure of how many answers you have, intelligence is a measure of how many questions you have.
From: Mr.T on 16 Dec 2009 21:10 "B J Foster" <bjfoster(a)yahoo.com.invalid> wrote in message news:hgbg1b$2o4$1(a)bjf.motzarella.org... > chief executive Gail Kelly fired back: > "We're paying much more for raising wholesale rates - about 10 times > what we were paying before the crisis", she said. And their bonuses are higher of course. But their rates to depositors are half what they were before the crisis so that should be an offset. > "In fact, our average wholesale term funding costs are around 80 per > cent higher than they were a year ago". > http://www.abc.net.au/news/stories/2009/12/16/2773898.htm?section=business > > Goodness gracious, that's the first time I ever saw a banker assert that > 1.8 == 10. Really, isn't that why we had the GFC in the first place? > And I'm wondering whether it is wise to use a bank whose CEO struggles > with arithmetic. Nope, which one do you suggest then? RBOS, Lehman Bros perhaps? :-) MrT.
From: Mr.T on 16 Dec 2009 21:17 "David Clayton" <dcstar(a)NOSPAM.myrealbox.com> wrote in message news:pan.2009.12.16.21.17.02.542639(a)NOSPAM.myrealbox.com... > On Thu, 17 Dec 2009 07:30:42 +1100, B J Foster wrote: > > chief executive Gail Kelly fired back: "We're paying much more for raising > > wholesale rates - about 10 times what we were paying before the crisis", > > she said. > > > > "In fact, our average wholesale term funding costs are around 80 per cent > > higher than they were a year ago". > > http://www.abc.net.au/news/stories/2009/12/16/2773898.htm?section=business > > > > Goodness gracious, that's the first time I ever saw a banker assert that > > 1.8 == 10. > > Well, the problem is that both statements refer to two totally different > time frames, "a year ago" <> "before the crisis". Similar time frame actually, 12-18 months, although I admit "before the crisis" could mean 1,000 years ago when a banker or politician is making the statement. Even then I don't believe there is an point in banking history they were paying 1/10th of what they are paying now. Proof is required, not something a banker would be familiar with though I guess! MrT.
From: David Clayton on 16 Dec 2009 22:27
On Thu, 17 Dec 2009 13:17:24 +1100, Mr.T wrote: > > "David Clayton" <dcstar(a)NOSPAM.myrealbox.com> wrote in message > news:pan.2009.12.16.21.17.02.542639(a)NOSPAM.myrealbox.com... >> On Thu, 17 Dec 2009 07:30:42 +1100, B J Foster wrote: >> > chief executive Gail Kelly fired back: "We're paying much more for > raising >> > wholesale rates - about 10 times what we were paying before the >> > crisis", she said. >> > >> > "In fact, our average wholesale term funding costs are around 80 per > cent >> > higher than they were a year ago". >> > > http://www.abc.net.au/news/stories/2009/12/16/2773898.htm?section=business >> > >> > Goodness gracious, that's the first time I ever saw a banker assert >> > that 1.8 == 10. >> >> Well, the problem is that both statements refer to two totally different >> time frames, "a year ago" <> "before the crisis". > > > Similar time frame actually, 12-18 months, although I admit "before the > crisis" could mean 1,000 years ago when a banker or politician is making > the statement. Even then I don't believe there is an point in banking > history they were paying 1/10th of what they are paying now. Proof is > required, not something a banker would be familiar with though I guess! > No, 12 months ago was right in the middle of the panic. Conditions were nothing like before the GFC. You have to realise that any sort of statement from these people is structured in such a manner that they always have a get-out, and they rely on people not fully understanding or paying close attention to them. It obviously works, as the original post demonstrates. -- Regards, David. David Clayton Melbourne, Victoria, Australia. Knowledge is a measure of how many answers you have, intelligence is a measure of how many questions you have. |