Rudd says funds should become banks

The Prime Minister Kevin Rudd last night announced that government will provide funding to support Mortgage Funds and other managed fund providers applying to become authorised deposit taking institutions. Mr Rudd said if they were willing to undertake the higher level of prudential regulation, including holding capital reserves. Perpetual, Challenger and AXA did not return calls. "No Government can, in good conscience, put taxpayers' dollars at risk to support financial institutions which are not open, transparent and properly accountable to Australian regulators," Mr Rudd said in a speech to Australian and global corporate leaders in Melbourne last night.

Source: Sydney Morning Herald