Abbot says banks bully government

Opposition leader Tony Abbott said that the ‘ineffectual’ Labor government was being “stood over” by the major banks. “We didn't see this kind of behaviour by the banks under the former government,” he said, referring to bank plans to raise interest rates independently of the RBA. Opposition treasury spokesman Joe Hockey said the Treasurer had warned banks more than 30 times about raising their rates out of step with the Reserve Bank, but had not taken any action.

Mr Hockey said the government is “funding the residential mortgage-backed securities market, they could differentiate between support for smaller banks, smaller entities and the larger banks if they are getting any support. They've ignored the Treasurer on 30 separate occasions, what is the Treasurer going to do?” Mr Swan said Joe Hockey had no economic redibility.

Source: The Australian