My information is that because of the stricter legislation in Australia, the effect on the banks was almost entirely due to overseas influences.

Why on earth would you want to shackle the industry further when it has been shown to be robust?

Australia does have its own sub prime mortgage crisis. property developers have been advertising no deposit, legals or stamp duty home and mortgage packages to young first home owners. retailers have been offering no deposit or payments for up to 5 years on a house full of furniture and white goods. these dinks survive only as long as both continue working.

The reason we pay higher bank fees, charges and interest rates is so that we can cross subsidise the bank's losses on these dodgy loans.

The next GFC is in the planing stages, its called an ETS. Trading in carbon default swaps, derivative forestry futures, shares in timbercorp and great southern is what got us into this mess and will do it all over again after the next boom.