CBA ups interest rates, then chuck a party??!!

This is absolutely disgraceful & uncalled for. The Commonwealth Bank of Australia (CBA) raises up interest rates, claiming this is needed because it costs them money to lend funds. Then they turn around & throw a colossal party. What on earth is going on??!!!

I don't mind telling u, dear readers, that I used to bank with CBA. I left them in 2002, after they decided to impose monthly bank fees on my account - regardless of balance or frequency of usage. I still remember that day. I lined up in the CBA's Queen St branch in the Brisbane CBD, & there was a massive queue - about a dozen people in front of me, & even more people behind me. I could hear the people in front of me telling the CBA counter that they are closing their CBA accounts due to that monthly bank fee. So when it came to my turn, the CBA officer could guess my reason for closing my CBA account. I moved my balance to St George Bank, & have been with them since (I also got various savings accounts with a few other banks).

As for CBA, well....tsk tsk tsk.

Here's the article:

CBA parties on after slugging homeowners with rate rise

16/06/2009 9:00:00 AM By Stuart Fagg, ninemsn Money

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.

Link: http://money.ninemsn.com.au/article.aspx?id=825970