Garnaut: Govt unable to bail-out banks a 2nd time

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By Leith van Onselen

Professor Ross Garnaut fronted the Melbourne Economic Forum yesterday and warned that the Government would be unable to bail-out the banks again if another Global Financial Crisis (GFC) hit. From The Canberra Times:

The local banks’ reliance on offshore funding left them in trouble when the 2008 global financial crisis hit. Unable to refinance debt, they were bailed out by taxpayers under the former Labor Rudd government.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.