Commonwealth Bank of Australia's CEO

Commonwealth Bank CEO Ralph Norris has admitted his bank's 0.45 per cent interest rate rise will cost some of his customers their homes but says it causes him immense angst. He added that it was better to see "a few" foreclosurers than have an economy hamstrung by a low-profit banking system.

The 16.2 million dollar man urged customers feeling mortgage stress to contact the bank and seek temporary relief. See, he's not a despicable corporate monster, this man has feeling. He's on a kind of performance bonus, the more money he screws out of the people, the richer he gets. And get this - he's a Sir - Sir Ralph Norris - and he's a Kiwi.

Sydney radio king Alan Jones has been chasing Sir Ralph for weeks but he can't catch him. He's called him a coward on several occasions but he refuses to be interviewed. He's created such bad publicity for the Commonwealth Bank, it's a wonder he hasn't been told to go to the media and clean up his mess.

Sir Alan visited Cabramatta High School yesterday, right smack bang in the middle of the Sydney mortgage belt. The kids wanted to know why there was a need to raise the interest rate yet again. When they backed him into a corner, that's when he trotted out the information that he grew up in a rough neighbourhood in a Housing Commission house in New Zealand. Somehow he thinks this should make a difference. If anything, it should make him more compassionate towards needy people.

"I have done all I can to try to minimise the impact by making sure we've got good customer assistance programs for those customers in genuine need. That's all I can do" he said. You're breaking my heart mate.

The governmnt and the banks say it's all about competition. Really? What happens if you want to opt out of your loan and go with a cheaper provider? They stick you with a huge exit fee somewhere around $1000. But here's the good news, ING Direct is about to offer $1000 to home owners if they will switch to one of its products, effectively paying the banks' greedy exit fees for them. Now we are getting somewhere.

The Commonwealth Bank of Australia made $6.1 billion profit last financial year but Sir Ralph said his bank was not gouging customers. The other big banks have yet to announce their interest rate hike, but they are just as greedy. We urgently need help from the government to pull them all into line.

Commonwealth Bank of Australia

The Commonwealth Bank released its profit figures yesterday - it's an obscene amount - it went up more than 40% to $6.1 billion, that's nearly $700,000 an hour.

Drumming up support for re-election, Family First leader Senator Steve Fielding said yesterday "If Labor and Liberal had any guts, they would take on the big banks and make them pay for the years of pain they have caused ordinary Australians by ripping us off time and time again. The Commonwealth's profit could feed a third world country for a year yet we let them get away with sending Australians into mortgage stress because of their unrelenting greed."

So why do our governments let the banks get away with blue murder? The Opposition says they should lower interest rates and fees but they never get around to actually doing it. Six interest rate rises since October have added about $300 to the average mortgage.

Joe Hockey said yesterday the banks are going to make as much profit as possible, what it takes is a strong treasurer to stand up to them and say you need to make credit more affordable for small business and home borrowers. The banks know that when Wayne Swan challenges them about mortgage rates, it's like being slapped with a feather-duster - it doesn't hurt". Well Joe, if you suddenly find yourself Treasurer in two weeks time, we'll expect to see some action.

Greens leader Bob Brown said Treasury could consider a super-profits tax on banks similar to the big miners. "While many Australians are pulling their belts in, the Commonwealth Bank is raking in this huge profit" he said. The Greens supported legislation to remove $2 ATM charges which are already banned in the UK. They would also push for the creation of a $5 million cap on CEO salaries.

But there is one sector of the community who will be very happy with the result - the shareholders. The bank's record result means that dividends have jumped 48 per cent in the second half to $1.70 a share. For the year, that dividend swelled to $2.90, meaning the bank will hand back almost three quarters of its earnings per share of $3.95 to investors.

And here we come to the big dilemma - when greedy corporations prosper, shouldn't we be applauding their success, afterall, if they are successful, the country is obviously ticking along very nicely. And let's not forget that it's not only silvertailed shareholders who will be happy with the bank's huge profit, it's also good news for ordinary workers who have invested in super funds for their retirement - we can't possibly criticize them.

But what about the young families struggling to keep their heads above water but are slowly sinking into a sea of debt. Six interest rate rises since October have added about $300 to the average monthly home loan. Electricity bills have jumped to almost double since last year and people are loathe to turn on their air conditioners. Food prices, especially meat, are out of control, one butcher in Castle Hill in Sydney was selling Scotch fillet steaks for $40 a kilo. But the banks couldn't care less. Whenever there is an interest rate rise announced, they put their rates up immediately - they can't even wait a few days.

Unfortunately the bank has a comeback and it will bring a tear to your eye. The Commonwealth Bank employs 45,000 people with a salary bill of over $4 billion. They pay $2.9 billion in taxes and as already stated, help mum and dad investors and millions of other Australians who have invested in super funds. So that makes them the good guys.

Steven Munchenberg, chief of the Australian Bankers' Association is quick to point out that the Australian economy continues to benefit from the solid performance of the banking sector and he's right, damn it. Last year they contributed $8 billion in tax. He also points out that banks in the USA and Europe have collapsed or been bailed out. He said that well performing banks are also important to ensure that the dividend payments can continue to be paid to many self-funded retirees.

So we get to hear the other side of the story but it doesn't make us feel any better and it doesn't change our mind. The banks take no prisoners and show no mercy - we know we are being screwed and there is nothing we can do about it. Profit up 40% - wow - Gordon Gekko would be proud.