Abbott says re-regulate the banks

The prime minister Kevin Rudd gave Westpac enormous support during the global financial crisis and did not get any influence in return says the opposition leader Tony Abbott.

Mr Abbott said that under John Howard as prime minister and Peter Costello as treasurer, ”if the Reserve Bank put interest rates up or down the banks put interest rates up or down by the same amount”.

Raising the prospect of regulation, he said: ”Now, the Government has given a lot of support to the banks, quite understandably in the throes of the global financial crisis, but why hasn't [it] got any leverage over them?”

Source: WA Today