Not much to disagree with here:
"It is a piecemeal approach to banking. Now the big issue, from my perspective, is that we now have a situation where Australian banks are too big to fail. They are going to be underwritten by the Australian taxpayer no matter what. Now this is a massive change that has come about after the financial crisis, we saw the collapse of Lehman’s in the US, we have seen the collapse of other banks, we have seen other banks like Citi Group and Royal Bank of Scotland go into government ownership in the UK. I would say to you Andrew, the biggest issue facing the banking system has not been addressed at all, which is the fact that now the banks are guaranteed by Australian taxpayers. There is a moral hazard there and the banks are too big to fail and it has not been addressed which is the whole substance that underpins what I have been saying for the last few months."
