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Deposit safety to be guaranteed

Discussion in 'General Investing Discussion' started by Tropo, 3rd Jun, 2008.

  1. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
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    3,394
    Location:
    NSW
    Deposit safety to be guaranteed

    The Rudd government plans to implement a scheme to guarantee the first $20,000 of a deposit in the event of a bank collapse.
    Depositors who lost more than this would have to wait for the institution to be liquidated or taken over by another banks to get the rest of their money back.
    If there was still a shortfall this could be made up by charging other banks a levy. Consumer groups have welcomed the initiative but the Australian Bankers Association has warned that it is not fair or necessary.
    Chief executive David Bell said that no deposits had been lost by Australian institutions since the 1890s.
    "It is not good policy that a poorly run institution that fails should have to be bailed out by well run institutions that spend time and money on making sure they are properly run and protecting depositors," he said.

    Source: The Australian
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Great,

    Give more paranoia to those that think they should spread their bank accounts through different banks...

    Can't they just increase the number of Commonwealth Government Securities held by the banks?

    So much easier, ohh, it's a PR exercise...
     
  3. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW

    Sometimes I think that they simply refuse to acknowledge that 2x2 = 4.:eek: