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(generated from captions) terrorists. I think it was on '24".

How will they carry it discretely.

What is a Christmas bonus for most

of us, the big banks passed on the

RBA's interest rate cut. Now they

are looking to fight back. After

holding out for three days, one by

one the major banks reluctantly

passed on a quarter of a per cent

rate cut. Home owners love it.

Swannie loves T This means money in the pocket for millions of

Australians in time for Christmas.

With his extra money Tony Abbott

decided to by Karl budgie smugglers

and compliment him on his ability

to fill them. That's one big budgie.

Mate. The ANZ now says it will

decide interest rates independently

of the RBA. Basically making up

their own rules. Increasingly our

funding costs are not related to

funding costs are not related to

the Reserve Bank's cash rates.

Traditionally the RBA used interest

rates as a way of controlling the

economy. With the banks no honger

playing ball, is -- longer playing

ball. Is Wayne 'Treasurer of the

Year' Swan, losing the game. Who

better to ask but the Treasurer.

Have you lost all control over the

banks, are they a law unto

themselves? I'm pleased to see they

are taking notice of their

customers, we have seen the impact

of people power, extra money in the

pocket before Christmas is welcome.

Does the Reserve Bank rate lose its

relevance if the big four banks

don't follow suit? Well, certainly

it's a difficulty. It's important

that they do pass on these Reserve

Bank cuts. In the case of, say,

someone with a $300,000 mortage,

the two rate cuts we have had is

something like $100 a month. Wayne

Swan, I'm right in thinking that

for every 0.01 of a percentage

point that the banks don't pass on

they are making $60 million. Why

can't regulation safeguard against

that? Well, the most important

thing is to have competition in in

the market. What we saw was the

smaller banks and credit unions got

out with the pass through. What I

have been doing in recent times is

putting in place a range of reforms

giving them the capacity to compete

with the big banks and keep them

hon ef. You send out -- honest. You

send out mixed systems, you boast

about the economy being good and

the banks being strong, the Backs

say part of that is they created a

bigger buffer zone. Why do you

criticise them for not passing on

the interest rates. Do you can safe

or profitable. I want safety banks,

profitable banks. The banks don't

have a right to earn a super profit

continuously in the market. They

have a lot of power. The ANZ Bank

is saying our assumption that when

the reserve lowers rates that banks

will follow is unrealistic. When

the rates go up, they increase

theirs without a worry. The banks

don't have a god-given right to a high-level of profit irrespective

of what is going on in the economy.

Moving on to global issues, there's

emergency meetings in the eurozone,

trying to save the economy there,

I'm interested to know as Treasurer,

what are your advisors telling you

is going to happen if the EU can't

get it together and the eurozone

falls apart. I think there'll be

consequences for the global economy.

That's why it's so important in

Europe, over the weekend that they

not only put the plans in place,

but demonstrate that they are

serious about implementing those

plans. Otherwise there'll be a

dramatic impact on global growth

and it will affect Australia as

well. Finally, you have been

labelled the best Treasurer in the

(LAUGHTER) world. Who is the worst?

I think you could go Europe and

find a number of candidates.

There's no doubt about that. Thank

you so much for your time. We'll

let you go and enjoy your weekend.

Thank you. He's certainly a popular

man, Swannie, no doubt about that.

Is he half as popular as this bloke

much see if you guess who this

superstar is. They've taken a photo

of a great man himself. Come on,

girls. Snuggle in. Come on, one

more. There we go. There we go.

Good on him. It proves one thing.

Teenage girls will get their photo