BANKS STEALING FROM PRIME RATE REDUCTIONS
When is enough, enough? Profit taking that is. Bank profits have been soaring endlessly
without fail, quarter after quarter, year after year, and yet their appetite for more is
unquenchable.
Most recently, once again they have not passed on to the consumer the full value of the
quarter point prime rate reduction by The Bank of Canada.
The B of C is trying to stimulate a sluggish economy while the Big Banks are thwarting
B of C’s efforts (our federal government) by grabbing much of the decrease in prime
rate.
TD was first to announce that they are reducing prime by only 10 basis points or 40 per
cent while keeping the other 60 per cent to pad their profit margins. Do you think they
are the least bit afraid of the feds?
Next RBC, CIBC and BNS announced they would pass on 15 basis points or 60 per
cent of the reduction. A little nicer, but still not nearly enough is it? This should be our
money, our savings. We think that this should be illegal. We can bet that when prime
increases next, the banks will pass on 100 per cent of any increase, or who knows add
on an extra .10% or ten extra basis points together, because they are not held
accountable.
We are seeing a very dangerous trend where the banks can seemingly do whatever
they want.
What’s going on anyway?
Should not be held more accountable? A lot more accountable?
While the Feds have the power to keeps the big bad banks in line, they are not doing
so. However we the people (cumulatively speaking) still have the power to force the
banks to relent. Just take the recent attempts to introduce ‘User Pay Fees’ which were
designed to start charging consumers a fee just to make a loan, line of credit, credit
card and yes even a mortgage payment. In short we could not make the required
payments of debt obligations without paying an additional ‘fee’ to pay. Crazy right?
We consumer backlash made short order of that one. The same could potentially
happen if Canadians are vocal about the outlandish profit skimming above.
Isn’t it time we the consumer be heard again? What is at stack is not just the one 40%
bank ‘take’ last week but actually the previous one as well.
Please stand up and be heard because we are going to. Go Canada!