New home sales slump again

The housing industry is hoping the fiscal stimulus package and more rate cuts will boost the market.

Rudd calls on banks to help thaw funds

PM Rudd calls on banks to help thaw frozen investment funds.

Rudd's wacky 'become a bank' idea is impractical and smacks of desperation

Malcolm Maiden The Government should withdraw its unfair guarantee on bank deposits.

Growth to top 2%: Rudd

The economy will grow despite recession fears, PM says, pledging to proceed with a carbon trade scheme.

Carbon scheme won't cripple economy: Treasury

Emissions trading will cut economic growth and push up inflation - but only by a small amount.

Inflation reduces scope for rate cut

One of Australia's top central bankers says high inflation may limit room for manoeuvre on interest rates.

PM's boost could provide a fine cushion

Elizabeth Knight Prime Minister Kevin Rudd's stimulus package is hard to fault in most respects. Its timing is economically brilliant while it is conservative enough to leave something in the can for what could undoubtedly be tough times ahead.

Rudd unveils $10.4b stimulus plan

Staff reporters The Australian government will spend $10.4b to stoke domestic demand and head-off an economic recession.

A bold move from Rudd

Malcolm Maiden Governments around the world have thrown everything at the financial crisis - Kevin Rudd has just added the kitchen sink.

Stimulus reduces recession risk: economists

The $10.4 billion stimulus package to protect Australia from the fallout in global financial markets will help minimise the effects of a possible recession in 2009, economists say.

Market chaos won't slow carbon scheme: PM

Australia's plans to launch a carbon emissions trading scheme within two years will not be derailed by the global financial crisis, Prime Minister Kevin Rudd says.

Fitch rules out local bank nationalisations

The credit ratings agency rules out the federal government nationalising banks, saying the nation's lenders are far stronger than those in the northern hemisphere.

Business conditions steady despite turmoil

A key measure of business conditions held broadly steady in September, helped by the booming mining sector.

Time to come clean

Michael West Australian banks deposits have been guaranteed. Now it's the time for the Big Four to reveal in full their risky exposures.

I had to act, Rudd says

The Prime Minister says he was not prepared to stand by and let Australian banks become disadvantaged.

Rudd's $700 billion bank guarantee

Michelle Grattan and Vanessa O'Shaughnessy The Government will guarantee the $600-$700 billion deposits in Australian financial institutions in a move to shore up local confidence and protect the nation's international competitiveness.

Crisis spreads faster

Anne Davies in Washington THE Federal Treasurer, Wayne Swan has warned that the economic crisis is flowing through to developing economies much faster and more brutally than expected - including Australia's major trading partners.

No recession but jobless to rise: leaders

Jessica Irvine AUSTRALIA is likely to avoid recession, but economic growth will slow and more people will lose their jobs as the global financial crisis hits home, the Federal Government says.

Australia faces softer landing

Kenneth Davidson Underlying commodity strength will play its part in pulling the country through.

Running out of tools to fix crisis

Michael West When confidence is shattered will lowering rates bring borrowers back to the market? The coming days will tell if the world is headed for a Greater Depression.

Rudd holds firm on credit crisis

The International Monetary Fund delivers a positive forecast for Australia despite the deepening global credit crisis, Prime Minister Kevin Rudd says.

Full-time jobs go

Staff reporters The Australian economy shed 15,400 full-time jobs in September, the worst decline in two years.

Survival of the financially fittest

Malcolm Maiden The financial crisis continued to overwhelm individual actions by governments and their regulators yesterday, and the pressure for unprecedented co-ordinated action is growing.

It's a win, win win situation

Ian Verrender CRISIS? Not at Commonwealth Bank of Australia's headquarters.

Bold action to breathe life into the economy

Ian Verrender SMH FORGET the popping of champagne corks in stockbrokers' offices. Ignore the cheer from the mortgage belt and listen carefully.

$250 you can bank on

Phillip Coorey and Jessica Irvine HOMEOWNERS will receive the biggest single reduction to their mortgage payments in 16 years after a worried Reserve Bank slashed interest rates by one percentage point yesterday to shield the economy against the global financial crisis.

RBA's cut first of many as other central banks to match

Malcolm Maiden Central banks that fail to guarantee deposits risk sparking an exodus of funds.

Help for banks, borrowers and Rudd

Michelle Grattan The Reserve Bank is trying to massively inoculate Australia against falling victim to the international financial disease. In so doing, it has also given the Rudd Government a lot of political cover.

RBA rightly decides it is time for shock therapy

Commercial banks ought to pass on most of the one percentage point rate cut to their customers.

In hock to the world

Michael West Australia is no safe haven in the global crisis as our reliance on foreign money has left the economy at the mercy of overseas markets.

Dollar rebounds after rate cut

The dollar rebounded this afternoon after initially falling on news of the RBA's 100 basis-point rate cut.

Great rate-cut debate misses the point about our banks

IanVerrender Smoke hangs thick in the air as the long-range artillery commanders survey the scene. The job is done, the target softened. It's now time for the ground assault.

Predicament too fragile for Turnbull's tactics

Malcolm Maiden You have to wonder what Malcolm Turnbull has been smoking this week.

Brace for economic misery

Michael West Remember the 1990-91 recession? Most pointers signal the coming Australian slowdown will be more severe even if the pundits aren't yet calling it.

Not out of the woods

Michael West Market relief is likely to be fleeting, with the implications for Westpac and other Australian banks still to work their way south.

Don't laugh at the rich, this is serious

Ian Verrender UNCHARTED waters, dangerous territory, storm clouds. Whatever your choice of metaphor, there is no understating the seriousness of the situation in which we now find ourselves.

Reserve tipped to double rate cut

Jessica Irvine Economics Correspondent THE Reserve Bank is increasingly likely to slash official interest rates by half a percentage point at its meeting on Tuesday, amid soaring funding costs for banks and signs that households are tightening their belts.

Swan won't pressure banks to pass on full cut

Treasurer Wayne Swan has refused to pressure banks to pass on the full amount of any cut in the official cash rate.

Talent up for grabs

Michael West The financial boom that lured a generation of society's brightest and most ambitious is over. There lies some of the upside.

Bailout failure 'a bad development': Rudd

Prime Minister Kevin Rudd has described the US House of Representatives' decision to block the Wall Street bailout as a bad development.

Swan warns of rate fears

The ever-deepening global credit crisis could impact interest rates locally, Treasurer Wayne Swan says.

Sweet merger in face of a global crisis

Malcolm Maiden Grant Samuel's veiled warning that St George shareholders would ignore Westpac's takeover offer at their peril, the debt extension Centro has won from its banks, the Benelux government rescue of Fortis and a continuing wash of central bank cash into the global system were all crisis control indicators yesterday.

Frozen-out expats return to Australia for jobs

Jonathan Dart A GENERATION of young Australian expatriates are being forced home from New York and London due to the tightening job market in the finance industry.

All bull and no bear

Michael West Suncorp chief John Mulcahy's pay packet swelled even as his firm's share price halved. Other executives are dodging a pay cut too.

Executive greed 'has to cease'

Jessica Irvine Economics Correspondent THE Treasurer, Wayne Swan, has urged shareholders to target overpaid executives and signalled greater regulation of unscrupulous mortgage brokers.

Banks hoard record $7.6b at RBA

Australian banks are holding record deposits at the central bank, as financial institutions hoard cash worldwide.

Taxpayer to rescue again

Jessica Irvine Economics Correspondent GLOBAL economic uncertainty has forced the Federal Government into a $4 billion rescue of Australia's struggling non-bank lenders.

Regulators turn a blind eye

Michael West Amid investors' glee over short sellers in B&B who are being savaged in an almighty 250% "short squeeze'', the ASX has some homework to do.

Lehman Australia in administration

Chris Zappone Administrators step in at Lehman's Australian unit just three days after it was sold to Nomura.

ANZ chief warns of global meltdown if bail-out fails

Eric Johnston the chief executive of ANZ Bank said the health of the world's banking system hinges on the US Congress approving the $US700 billion bail-out of Wall Street.

Australia surviving financial storm

Chris Zappone Global financial turmoil having muted impact on Australian bank profits and homeowners' ability to repay their loans, the RBA says.

RBA expands money market operations

The Reserve Bank will offer to take short-term deposits from banks and financial institutions, in a move aimed at mopping up some of the excess overnight funds that banks are holding.

Financial markets damage contained: ASX

Eric Johnston ASX chief says opening up the market operator to domestic competition is not in the national interest.

Australia can handle slowdown: IMF

Australia can handle the slowdown in world growth, the IMF said, praising the RBA's decision to cut rates.

US economy falls ill, Australia sneezes

Chris Zappone Australia's economy looks well placed to weather a global slowdown as it has increasingly decoupled from the US economy.

Wider short-selling ban heavier than necessary

Malcolm Maiden From the moment ASIC decided on Sunday to widen its temporary ban on short selling a period of uncertainty was unavoidable.

Heat on ASIC over short-selling ban

Vanessa O'Shaughnessy and Ruth Williams The Government has moved to allay confusion surrounding short-selling with the release of planned disclosure rules, as regulators continued to tweak with the temporary ban.

Government drafts short selling laws

New laws will require future covered short sale transactions on financial markets to be disclosed.

A step too far

Michael West Banning short selling means less liquidity therefore more volatility in share prices. It is reckless policy-on-the-run.

ASIC caught short on using regulatory power

Ian Verrender Australia's corporate regulator, Tony D'Aloisio, has outdone himself this time.

Ban on short selling inhibits CFD traders

INVESTMENT Vanessa O'Shaughnessy CONTRACTS-for-difference markets have been thrown into confusion by the Australian market regulator's decision to ban short selling.

Labour vows to tackle roots of crisis

BRITAIN is to draw up legislation to bolster the role of financial regulators and make it easier to intervene in a crisis to help stem global turmoil, the Chancellor of the Exchequer, Alistair Darling, said last night.

ASIC tweaks short-sale ban

The stock exchange was thrown into confusion this morning after an extraordinary last minute decision by the regulator to ban covered short selling rattled fund managers.

• Shares surge after delayed opening

ASIC in total ban on short selling

Eric Johnston The regulator has banned short selling for at least a month as a circuit breaker to restore investor confidence.

Banks battered but unbowed

AUSTRALIA'S banks have exposures of about $800 million to the failed American insurance giant AIG, according to informed sources.

Law to reel in share sharks

Jacob Saulwick and Colin Kruger Regulators rushed through major changes to the local sharemarket, making it harder for hedge funds to profit from falling share prices.

Midas of misery short on friends worldwide

Jamie Freed A NEW YORK hedge fund manager with large investments in Australian companies has been singled out as "the Midas of Misery" after making massive profits through short selling.

Macquarie rallies after massive fall

Jacob Saulwick, Colin Kruger and Eric Johnston Macquarie shares made a stunning comeback today, but questions over the viability of the bank's model remain.

Banks wary of lending - to each other

Australian banks are less willing to lend to each other than at any time since Bear Stearns collapsed six months ago.

ASX told to take stronger line

Scott Rochfort THE Australian Securities Exchange has been urged by a leading corporate governance advisory firm to mandate the listed satellites of companies such as Macquarie, Babcock & Brown and Challenger to disclose the "full text" of their management agreements with their parents.

Rumourtrage at Macquarie, B&B

Elizabeth Knight ASIC raised eyebrows by announcing it would look into false rumours and manipulation relating to Macquarie Bank.

Central banks in huge rescue bid

Marc Moncrief and Peter Martin Six of the world's central banks take unprecedented joint emergency action to prop up global financial markets, as deepening crisis of confidence threatens to plunge world into recession.

Loose lips sink banks, Rudd tells Turnbull

Phillip Coorey Chief Political Correspondent KEVIN RUDD moved to reassure the nation that its banks were in "sound shape" as he accused Malcolm Turnbull of endangering Australia's financial institutions with reckless language.

Lloyds may offload HBOS Australia

The Australian operations of HBOS may be sold after Lloyds TSB acquired the British mortgage lender.

Australia's banks safe: RBA chief

Peter Martin Glenn Stevens declares Australia's financial system sound, even as US bails out world's biggest insurer, American International Group.

RBA pumps more cash as markets reel

Japan and Australia have pumped a further $21 billion into money markets today to prevent banks from hoarding cash.

Banks' exposure is small

Jacob Saulwick AUSTRALIAN banks yesterday disclosed up to $400 million in exposure to Lehman Brothers as banks, derivative dealers, and even local councils continue to unravel their links to the biggest bankruptcy in history.

The smartest guys in the boom dragged the banks down

Michael West There are four key threats to the profits of Australia's banks: bad debt write-downs from imploding corporates, the well-documented rise in the cost of wholesale funding, losses from structured-finance holdings and the potential for mortgage defaults.

Doomsayers may yet be wrong about Babcock & Brown

Elizabeth Knight Thanks to the tumultuous week in world financial markets there were some particularly interesting and potentially important bits of news that received scant coverage in the media. One such event was the resignation of Babcock & Brown's Phil Green from the board. What does thissay about the future of this company?

Macquarie under scrutiny as rating cut looms

Eric Johnston Macquarie Group expected to come under more pressure after ratings agency Standard & Poor's revises down its outlook for the investment bank.

Debt binge over, it's time to pay

Jessica Irvine Economics Correspondent AUSTRALIA'S decade-and-a-half-long debt binge is coming to an end and a new era of austerity, in which consumers pay down their debts, live within their means and save for the future, is beginning, the Reserve Bank governor, Glenn Stevens, has predicted.

ADB warns turmoil may hit Asian banks

Turmoil roiling top-flight banks in the West could yet hit major Asian lenders and the region's regulators and central banks must coordinate actions to preserve stability, the Asian Development Bank warns.

Crunch time for Australia's banks

Michael West What will happen to the leveraged former heroes of the boom, who borrowed too much and whose share prices have been slaughtered?

AIG Life policyholders off the hook

Chris Zappone Over 1 million Australian super holders can breathe a sigh of relief that AIG has been bailed out.

Local AIG assets may be sold

Chris Zappone While the future ownership of AIG's Australian division is uncertain, the US insurer's local chief says the business is healthy.

Victoria gets Lehman jitters

The Victorian government admits it is not completely immune from the fallout of the collapse of Lehman Brothers.

Local banks reveal Lehman exposure

Jacob Saulwick Australia's big banks are all owed money by Lehman Brothers, some more than others.