Every decade or so, the HSBC looks at taking over Westpac. St. George would help Westpac's corporate portfolio. In which case the government should allow one only super-merge to compete with major league, NAB + ANZ. Westpac and the CBA would stay Oz or regional banks. Westpac has failed its mission become The Estern Pacific Bank and acquire West Coast US Banks [it's goal 1982].

Seems the new Westpac MD wants buy back her old turf and [known] executive staff {?}.

And the thread comes full circle.

That's a big 'if' Oliver. It is difficult to see how consolidation of power helps the consumer generally.

Swan has vowed to increase competition in the banking and home loan sector to stimulate better outcomes for consumer/borrowers. Whilst I am completely uncertain how much control the government is actually able to exert over such a merger, it flys in the face of the governments commitments to voters.

Will they do that? Well, I guess they're already heading down that path which is how this thread began in the first place. It seems the fee paying, mortgage burden voter continues to be left out in the cold.

"That's a big 'if' Oliver. It is difficult to see how consolidation of power helps the consumer generally." - Mortgageinsider

Fully agree. I wouldn't give it more than a twenty percent chance. But there are those in power who would like to see Australia have a "intrenational" bank. It's not anti-trust here, rathter being a player over there.

Westpac had to take on-board the Retail ruins of CHAMP [Cahse-AMP]. Overseas Banks have not had a good record here. Albeit, the HSBC, Banque Nationale and the Bank of China have potental. When at Westpace, we often made a conscious decision Citibank's so called "innovative" products, that may have seen consumers find their way into trouble.

Were the government to intervene, we would all the pin-stripes running around crying, "Socialists", "Socialists", "Communists"!

I don't agree with exra rate rises outside the RBA and never did it myself and pretty the guy you handles loans side didn't either.

The banks in 1980/90s did have credit scoring systems and were quite prudent. Well Credit Policy and Risk assessmenty. The Board is another matter.

In the 70s, when the finance company IAC {?} collapsed andthe shareholder value of the Banbs [for no other reason] dipped. I suspect the banks will acquire the sub-primes via securitisation, before relieving us.

Share price is the first concern. I have seen the Westpac's Board minutes. If fact, there is much, much less narrative than one would think. Pages and pages of amounts and goals. The stragic plans are articulated at the GM level and below.

Mortgage relief could be allowed through the tax system but this budget is going to be tough as we all know. Normally, I am not in favour of government intervention in the free market; but, it might be better than having loans exceeding equity, if things get out of hand.

Perhaps "term" should be more flexible and set against the capacity to pay, say 30-40% of net income?

More later.

Cheers.

O