While Mr Swan sits there crowing 'how smart am i' with his new banking reforms, he could be doing more harm than good, because the banks are simply untouchable if they so choose to be.

All the reforms in the world, designed to make banking more transparent, will amount to nothing in the way of savings, if banks simply choose not to pass on an interest rate cut.

Just remember Mr Swan, for every action, there is a reaction.

Have you considered that!

Considering your only tool for forcing banks to pass on rate cuts is 'guilt', you are playing a very dangerous game Mr Swan!

Sorry Rechtub, not my intention to start the new year by picking on you.
This is a subject you would be best avoiding.
A complex one clearly not understood by you in any detail.
It was the ALP who opened Australian banking up.
Not many on any side would today, disagree.
As law makers governments do have power, in this and other areas.
Australian Banks are in far better condition than others.
And used tax payers funds as insurance during the GFC.
You baffle me, what do you see as dangers in Swans move, are you aware both sides have and will continue to challenge banks greed?
Do we buy back the Commonwealth bank as a way to cut interest rates?

Ah, so it's the banks doing all the mismanaging eh ? They're not mismanaging, they
re making huge profits. They're just getting greedier & greedier & more brazen, sanctioned by Swan's gang. Was it the banks who squandered billions with all these one-off schemes to cover up incompetence ? Oh yeah, carrying on like a porkchop about the bad banks sounds pretty convincing but how about being a real Government & real Treasurer & pull the banks into line. Too much for Swanee maybe ?

A threat to set up a bank just for home loans, may keep them honest. Or we can say NO or CRAP.

Gentlemen, not sure that I see things the same way
as you. I find that Mr Swan's banking reforms are
a step in the right direction and cannot understand
your negativity. For example:

1) Mortgage exit fees can amount to thousands
of dollars. And, since Mr Swan banned exit fees in
July, 273,236 households have taken on new loans.
Which meant people were free to swap their home loans
without being penalised for it.

2) Home loan providers will now have to publish a
one-page mortgage fact sheet, designed to make
different home loan products directly comparable with
each other. Clients will now be able to work out the
best deal available for them. This will kick-start
competition among the banks - which can only be good
for clients.

*Considering your only tool for forcing banks to pass on rate cuts is 'guilt', you are playing a very dangerous game Mr Swan!*

Actually that is not the case, Rehctub. Mr Swan is simply playing
politics, on the assumption that the average punter like yourself,
does not know much about banking. Your post proves him correct.

Banks obtain around 40% of their money from offshore and that money
right now, is becoming more expensive, due to the EU financial
crisis.

So their average cost of funds is not declining by the amount
which the RBA lowers rates in Australia.

So if their real cost is higher, why should consumers not pay
accordingly?

You claim for yourself that business needs to be able to pass on
cost increases, but want to deny banks the same rights as you
claim for yourself. So clearly Mr Swan played a clever game of
politics, relying on your ignorance. He won.