Let Us Pray St Westpac Keeps Staff, Customers Safe

Sydney Morning Herald

Wednesday May 14, 2008

We are encouraged to believe the merger of two large banks will benefit both customers and shareholders ("Banking revolution", May 13). I fail to see how this can be achieved if, as is claimed, no jobs will be lost and no branches closed. It will be bad for the shareholder income stream if one can now use a St George EFTPOS card at a Westpac terminal, and vice versa, without penalty. Unless, of course, when they said no job losses, they meant that the jobs would be in India.

Christopher May Seaforth

What a torrent of misty-eyed sentiment has been brought forth by the proposed merger and the alleged danger that this will result in a "local building society becoming another big bank" ("Small is beautiful, say customers", May 13). Despite the relentless advertising spin, demutualisation and the subsequent steady decline into bank-like "customer service" standards long ago put paid to any notion that St George was anything other than a bank. The proposed St Westpac is unlikely to change much.

Neil McLachlan Katoomba

I am glad the Australian Competition and Consumer Commission can find no conflict of interest in the merger. It must have been tough for Westpac's new chief executive not to disclose any proprietary knowledge of St George's operations or structure to a competitor.

Caven Tootell Rydalmere

Here's a wonderful opportunity for the ACCC to serve it up to the banks.

The merger between Westpac and St George should come with tough conditions to protect customers. Both banks must agree to a moratorium on fees during the period of the merger offer. Once merged, all fees must be normalised to the lower of each bank's existing fee structure. These fees must then be frozen for three years. No new fee, charge or commission can be introduced during this period, and all branches must remain open and fully staffed at existing levels.

These conditions must be non-negotiable. Failure to agree to them should be grounds for the ACCC to veto the merger.

Greg Cantori Sutherland

There may be merits in abolishing the banking industry protection policy ("Four pillars looking for wisdom", May 13), such as improved efficiency, lower costs and global expansion opportunities.

However, any change to this policy must be followed immediately by improved regulation of banks' activities. For too long the big banks have imposed all manner of arbitrary and excessive costs on customers and have been allowed to get away with it. If Westpac and St George are allowed to merge, the fee structures of all banks must be made more transparent and accountable.

Better regulation of lending standards should also be implemented to avoid the exploitation of vulnerable households who borrow more than they are able to repay.

Brad Ruting Woolloomooloo

After not one of them was able to predict the proposed merger, market analysts now say it has not come as a surprise. What is not a surprise is that market analysts are highly skilled in predicting the past.

Mustafa Erem Terrigal

© 2008 Sydney Morning Herald

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