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Monday, October 13, 2008

Australian Prime Minister backs the banks

Prime Minister Kevin Rudd came across with the goods yesterday. He said his Government would guarantee all savings in banks, credit unions and buildings societies for three years.

He said that not one Australian bank was in trouble, they were the best regulated in the world and he is sure that the guarantee will never be called upon.

He will also guarantee all money banks have borrowed to ensure that overseas banks will continue to lend them money. European leaders were due to meet overnight at a summit in Paris to work out how to help their banks raise capital.

Although we’ve been told over and over that our banks are the best regulated in the world, I heard a woman on the radio yesterday asking a finance expert if she should take her $100,000 term deposit out of our biggest bank, The Commonwealth. It seems the bank guarantee from Mr Rudd came at just the right time.