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Special Report: A rebuttal of Parliament's bank attack

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  • Special Report: A rebuttal of Parliament's bank attack

    Bernard Hickey issues a rebuttal to the Parliamentary Committee report into bank profits and margins. He explains why the Committee is wrong to say the banks have not passed on the OCR and have not...

    From: http://www.youtube.com/watch?v=pWyFy81ENxs

  • #2
    How can it be a rebuttal if one set of
    figures relates to (or includes) another
    quarter? Isn't this ye olde apples/oranges
    conundrum, so oft mentioned?
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    • #3
      It sure is apples or oranges. Today we can see that any official statements are simply the way that information gets bent toward the corporation, government department or general business that pays for it to benefit them.
      What was missed in this statement was how banks were over-risked in Americas mortgage market bonds and lost huge money there so as time has gone they now still have this loss and kept mortgage rates up to profit more from us simply to cover their loss overseas and that has lessened their loss in the financial year overall. Even the mortgage break rates were so high after this that if you had legal help with it then there was no benefiting to change to a lower rate.
      Not all the comparison was included to make a true statement but the mention of comparison to the cash rate was a reasonable idea. The cash rate has dropped from what I think is 8.5% to 2.5% so a drop of 6.0%, deposit rates fell from about 6.5% then (7.1% well before the cash rate change with us at the BNZ) and recently were 3.5% [with a very recent improvement to 4.0% to look good] so best to say a 3.0% drop immediately and yet mortgages have gone from around 9.5% then while holding up a long time then bottoming at {5.9% short term with 8.5% on 7 year loans thus} an average mortgage rate now of 7.2% so a drop of 2.3%. Hmm, this way the cash rate drop 6% with deposit rate 3% yet mortgage rate 2.3% and banks smiling all the way.
      The BNZ used to display how well the public thought of them but our experience and comments from our account and lawyer, aswell as friends and work acquaintances, suggests to us the BNZ is the worst of all the banks now which is comparative to their revenue decline being so much less than all the other banks. Statistics can be bent but peoples experience is the best measure of of who is doing the best for the public.