CBA parties on after slugging homeowners with rate rise

Commonwealth Bank of Australia will throw a party for 800 staff at a cost of nearly $100,000 just days after slugging homeowners with rise in variable interest rates.

A spokesperson for the bank confirmed that the party, which will have a 1920s gangster theme, will take place this week in Sydney. A report in the Herald Sun newspaper said the bank would spend $500,000 on the party, a claim that CBA spokesperson Bryan Fitzgerald denied.

"The cost of the event is around $100 per head," Mr Fitzgerald said. "This is the same as last year. Many of these staff will not receive any salary increase in the coming year as has already been announced by the bank."

He added that the division for whom the party is being held – the financial services division – does not have a Christmas party.

"This division has a once a year function to recognise the end of the financial year. It does not have a christmas party," Mr Fitzgerald said. "The event is a staff rewards and recognition event that reflects the hard work and long hours undertaken by the financial services team over the end of the financial year period."

The bank angered homeowners and politicians late last week by announcing a 10 basis point rise in its variable mortgage interest rate, a move set to add nearly $220 a year to payments on a $300,000 mortgage.

The bank blamed higher funding costs on the move, but Prime Minister Kevin Rudd said the bank’s action threatened Australia's fragile economic recovery, while Treasurer Wayne Swan called the bank “selfish”.

Mr Swan warned yesterday of community outrage if another retail bank lifts its lending rates, adding that he did not believe the decision was justified.

"I believe that if any other bank were to take a similar decision, there would be understandable community outrage," he told reporters.

Reports this morning suggested that National Australia Bank and Westpac had raised rates on their fixed mortgage interest rates while ANZ bank raised rates on its fixed rate mortgages for 10 year loans two weeks ago.

aap 16 Jun 2009


Flaunting their power in the face of human financial suffering.

A world beyond laws of the common folk.