The other day when I was talking about the findings in the Essential Research poll about public attitudes towards banks and passing on Reserve Bank interest rate cuts, I linked to Janet Albrechtsen’s column in which she loudly denounced populist bank bashing and asserted the Government and citizens should all be grateful to the banks:
The bottom line is this. The more the PM and the Treasurer bash the banks, the more they hurts Australian borrowers. Bank-bashing may feel good at the time but the subsequent pain will outweigh – heavily – the momentary pleasure. Anyone who understands the economy should understand that.
Anyone who understands economics? That apparently doesn’t include the Reserve Bank’s Deputy Governor Ric Battelino, who made these remarks to the House of Representatives Standing Committee on Economics yesterday, reinforcing a “detailed case” from Assistant Governor Phil Lowe:
When we look at bank profitability, we find that Australian banks are around the top of the international range. On the surface, this could indicate a lesser degree of competition than elsewhere. But when we look a bit deeper it seems that an important reason for the high profitability of Australian banks is their unusually low bad debt experience.
That’s directly opposed to Planet’s arguments, any disagreement with which she denounced as “hypocrisy” and “ignorance”. Let’s dwell on the first of those nouns. Stephen Mayne revealed on Tuesday that Albrechtsen’s husband John O’Sullivan works in the banking sector, and that their family wealth was enhanced by remuneration including Commonwealth Bank shares worth $5.1 million. O’Sullivan received them as a senior CommBank exec. Does Janet disclose any of this? And this is the mob who have been crusading all week for the public “right to know”?
Surely this alone is sufficent to render her appointment to the ABC as ‘officially ‘inappropriate’?
Er, are these two statements meant to be mutually exclusive?
I for one welcome the solvency of our banking overlords. That said I’ll also welcome the drop in interest rates they’ll pass on despite any minor grumbling.
Janet’s claim was that passing on the rate cut might lead to a re-assessment of Australian banks’ solvency and profitability. Which is patent nonsense, according to the Reserve Bank.
Not content with being merely a hack, I see. Adding shill to the CV might prove shrewd, who knows?
Fresh from the semi-colon debate, may I opine that “hypocrisy” and “ignorance” are nouns? Sorry Kim
The Planet is orbiting a distant star…..
Yikes! Thanks, Ambi. That was a survival from an earlier draft of the post when I was playing with some of Planet’s adjectives!
Cash for comment, anyone?
Wow! (I would have said ‘Crikey’ but, well, you know…)
“This Crikey story on September 13 last year pointed out that O’Sullivan was paid $2.4 million by CBA in 2006-07 and owned 114,000 shares, which would today be worth $5.1 million… And with the CBA set to report a profit of more than $4 billion tomorrow, Janet will be looking forward to receiving a dividend cheque of about $160,000 in September”
Every once in a while I get these little reminders that there’s a whole different world out there.
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Well, if Planet’s old man is as well off as you suggest, Darryl, no wonder she has no sympathy for the poor people. It explains a lot, really.
Still, I feel a bit sorry for the poor bloke, having to cohabit with Planet.
Sorry, Kim: a gentleman would have remained silent, but I was in Grumpy Old Bugger mode. Full decorum will be restored shortly.
And she has the gall to call others elitists. That’s what gets under my skin.