Friday, March 13, 2009

Could RuddBank become Australia's new Commonwealth bank?

LEGLISLATION setting up the so-called "Rudd Bank" goes far beyond its stated intention, according the Opposition.

Tabled Thursday, the bill was intended to allow the government and the big 4 banks to replace foreign banks who pulled out of commercial property syndicates, but its wording appears to allow the syndicate to buy out any lender from any form of commercial finance.

"Mr Rudd has is essentially establishing a new bank which can engage in any kind of business that he wishes, with all of the risk is being taken by the Commonwealth," said Opposition Leader Malcolm Turnbull...

"It will encourage banks, not just foreign banks, but second tier banks below the level of the big 4, to exit."

"It is entirely counterproductive and could only have been put together by a government that has no experience or understanding of finance."