Australian’s should be able to sleep better tonight, knowing that PM Rudd has today decided to guarantee all deposits (of any size) in ADIs (Authorised Deposit-taking Institutions) for three years.
Rudd has also gone further to guarantee all money Australian banks borrow internationally and instructing the Australian Office of Financial Management to purchase an additional $4 billion in residential mortgage backed securities, taking this to $8 billion.
» Rudd guarantees all financial deposits – The Australian, 12th October 2008.
» Rudd guarantees all bank deposits – The ABC, 12th October 2008.