Nick Sherry (Tasmania, Australian Labor Party, Shadow Minister for Banking and Financial Services) Share this | Hansard source

My question is to Senator Minchin, the Minister representing the Treasurer. I refer the minister to the turmoil in global markets as a result of the US subprime mortgage meltdown, and the widening debt crisis in Australia, specifically the impact on home lenders RAMS and Bluestone. Can the minister explain why, on 8 August, the Treasurer said:

Australian financial institutions are in a very strong position, very well capitalised, highly profitable, and our prudential regulator does not see any problems developing in relation to them.

Given that major problems for two major Australian institutions have already developed, can the minister now advise the Senate how the Treasurer could possibly have got it so wrong?