The Australian (Labor) government will retain its ruling of four pillars banking regulation in a bid to prevent mergers from Australia’s four biggest banks, said the Australian treasurer Wayne Swan on Monday.

The government will also establish a scheme that would give depositors of banks and insurance companies quick access to funds should a financial institution fail.

Following the recent global credit crunch and the instability in the financial markets, this would give a broader review of the health of the financial system in the country.

Swan said that, “the government considers that Australia is best served by a stable banking system that can continue to draw on the strength and risk management skills of four major banks rather than a smaller number”.

It comes after the announcement of one of the four major banks Westpac merged with the fifth biggest bank (St. George Bank) creating the biggest bank in Australia with a market capitalisation of $66B.

Popularity: 59% [?]

The Bush Administration has proposed to require fingerprint collection from international visitors when they are going through airports or cruise liners.  The fingerprints collected would be sent to Homeland security department soon after the visitors leave, according to a proposed rule.

 (Here’s a type of fingerprint scanner used in the UK but not necessarily in UK aiports.  Taken from VirginMedia.com website)

 

The proposal to be announced Tuesday will close a security gap identified after the 9/11 attacks.

According to DJ Newswires, Airlines and cruise ship operators must provide the department with biographical information before they leave the country and to do that they will need to have biometric information - such as fingerprints.  The data needs to be collected and then transmitted within 24 hours of the visitor leaving the US, according to a homeland security official who spoke on condition of anonimity as the announcement had not yet been made.

Here’s a link for some of the places where an international visitor would require their fingerprints.  Ten fingerprint scanners have already been enforced in some US airports since November 29, 2007.

What is your take on this?  Are you prepared to provide your identity and have Uncle Sam know exactly where you’ve been and when you were there?

Expect to see more of these fingerprint scanners at an airport near you.

Popularity: 96% [?]

In an aggressive effort to help home builders and struggling owners, the US Senate passed a combination of tax breaks to address the dwindling housing market.

The senate passed a regulation by allowing a $25.5B new property tax deduction to relieve the banks and homebuilders and a $7,000 tax credit for a purchase of a foreclosed home.

(picture taken from www.larealestateblog.net)

Despite the majority of the senate voting 84-12, the chances of the legislation becoming law is very slim.  Some senate republicans and the white house have criticized the various aspects of the housing bill.  In a letter sent to the White House speaker Nancy Pelosi, “We must not prolong necessary corrections in the housing market, bail out lenders or subsidize irresponsible borrowing and lending”.

The most controversial provision in the bill would allow businesses to offset their losses this year and next year against gains made from previous years, which may help homebuilders and financial firms that made billions during the good times and are now facing insurmountable losses and writedowns.

This has angered some conservatives and other housing groups who believe that these businesses do not deserve a bailout.

The White House is pushing forward its own package stimulus proposals which includes, tax credits for first time home buyers, increased housing assistance for low income rental housing and modest property tax deductions.

House democratic leaders hope to pass their legislation by the end of the month.

Popularity: 92% [?]