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Rooty Me!


Tony Abbott is getting challenged. It’s not your ordinary run of the mill kind of challenge but it’s a challenge nevertheless. And Joe is planning to get on his favourite horse to do. The banks.

There has been a load of talk about interest rates and what not and Joe wants to ride his horse all the way into the role of party Leader. Or at least deputy.

By the way if you forgotten who the deputy is, it’s Julie Bishop. She hasn’t been able to get a load of media attention of late. The most she had was an appearance on Q & A last week and a visit to Northam where she tried to ride the wave of discontent created by Scott Morrison. Unfortunately for her, the day she turns up with the press was the day two ladies in red decided to deface their t-shirts.

Maybe with something like FUCK the banks?

Andrew Robb also is throwing his hat in the ring, but after his election campaign performance and his difference of opinion with treasury figures, his call for a mini budget (based on treasury figures) is bucking him back into obscurity.

Joe Hockey on the other hand is striding the bank horse and talking a talk. I say a because it tends to shift as the days flow by. First it’s levers, then its 9 point plans and then all manner of populist bank lynching talk. You would think that Joe has done his homework on this. I mean it appears to be the case right? Wrong.

On an appearance on Alan Jones radio show today he made an interesting observation about his in depth knowledge in regards to all things financial. It was in my eyes, his Andrew Robb moment. By the way Mr Abbott, it appears Mr Jones has a new favourite.

ALAN JONES: Joe Hockey as I said before has navigated his way through this very successfully and with considerable courage!


Oh Mr Abbott! Are you nervous yet? Alan is anointing the chosen lamb. Alan continues.

ALAN JONES: You got Wayne Swan running around in circles saying the government will unveil tough new rules that will force most banks to lower the exit fees. No point in lowering exit fees if you are existing from one bank to another with the same behaviours at work!

The outrage! The indignation! You could swear he was a battler couldn’t you?

ALAN JONES: The reality is the big four banks are virtually government utilities!

WTF???? Who rights your stuff Alan?

ALAN JONES: They want total freedom in everything they do, but they want the guarantees to continue as well. And the government guarantees on deposits of up to $1 million dollars will be in place until next year. Imagine what distortions that creates in the market.

Alan. You really should check your homework. Joe Hockey is not asking for the guarantees to be cut.

ALAN JONES: Joe Hockey wants a forum in Western Sydney where bank chief executives and the treasurer can face the public.

And there we have it! Joe wants his Rooty and he wants it now. Apparently the denizens of Western Sydney will somehow be able to offer the economists in this country insight and argue the pros and  cons of Keynesian economics!

Actually no. Joe just wants to hold a publicity stunt. He finally gets to talking to Joe.

ALAN JONES: Wayne Swan is going on about exit fees. That should amuse you surely.

JOE HOCKEY: Well as you just rightly said, its no use abolishing exit fees if you can’t get a better deal somewhere else. But the other important thing is you can’t just deal with exit fees unless you deal with exit conditions.

OH! Exit conditions! Tell us Joe! You must have been keenly following this since the budget when Wayne Swan and the ALP bought up exit fees. After all Joe, you are the alternative. You should know this stuff inside out! Right?

Umm… No. Joe seem’s a little vague here. Here is what he says.

JOE HOCKEY: And the banks may well put in place, if they don’t already do so a set of exit conditions where you have to give say six months notice to the bank before you can close down your mortgage and move somewhere else.

So let me get this straight Joe because you really don’t seem to know anything about mortgage’s and their exit fees and or these maybe/maybe not exit conditions. In fact, you seem to indicate that the banks may want to consider putting them in? I thought you had the inside knowledge on this Joe? I mean there are only four big banks right?

In fact Alan Jones gives you a Dorothy Dixer and you go on in the interview to tell the audience about your vitae curricula to all and sundry.

JOE HOCKEY: Well yes. It’s been part of my career. I started as a banking finance lawyer, was involved in the first credit card securitisation(sic) in Australia. I was involved in the sale of the State Bank working for the NSW government as a co project manager. I was minister for financial services and regulation in the Howard government and put many of the facilities in place such as the financial services reform act. So I spent my whole life in and around banks.

Love that you were involved in the sale of the State Bank Joe. Did it help with the competition you now crave I wonder. And all that talk about financial services reform act sounds impressive!

The Financial Services Reform Act 2002 (FSR)

The Financial Services Reform Act covers a very broad area of finance and is designed to provide standardisation within the financial services industry. Under the FSR, to operate a superannuation fund, the trustee must have a licence to run a fund and the individuals within the funds require a licence to perform their job.

With regard to superannuation, FSR:

  • provides licensing of ‘dealers’ (providers of financial products and services);
  • oversees the training of agents representing dealers;
  • sets out the requirements regarding what information must be provided on any financial product to members and prospective members; and
  • sets out the requirements that determine good-conduct and misconduct rules for superannuation funds.


Hmm. So Joe. Why do you not know about banks and exit conditions on mortgages then? Why have you not got someone on your staff to call the banks and ask them what they have?

Here is an interesting link. ASIC already investigated fees in 2008. I wonder which party in the Senate refused to pass it?$file/REP_125_Review_of_mortgage_entry_and_exit_fees.pdf

Interesting graph below. It shows the coming GFC. More early termination fees and a rise in the fee against the Mortgage book.

And the fees themselves?

Yes Joe, some Bankwest and St George and others merged with other institutions; but look at the exit fees they USED to have and the ones they have now under the big banks?

To me Joe this whole thing smacks of scaremongering Scott Morrison style. You want the people to vent their anger at the banks. Maybe even invite those red t-shirt wearing ladies over with a new message on their t-shirts. You talk as if you know there are so called exit conditions, but your talk clearly indicates that you are only speculating.

The next thing is you are going to discover one of the bankers was refugee status, or has a relative working on the MDB plan, or god forbid!, they may have a different religion other than Christian!

Joe my man. You can’t have your Rooty and eat it too.

A. Ghebranious    2010      All Rights Reserved.

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