What Happened This Week

Banks take a beating

AUSTRALIA'S biggest banks continued to suffer from the global credit crisis, with ANZ admitting huge losses in debacles such as Bill Express, Centro and Opes Prime.

Meanwhile, National Australia Bank confirmed most investors in last week's $850 million bond sale had already pulled out after news of its $1.01 billion US mortgage-related provisions. The biggest five banks lost $29.1 billion in market cap in two days.

Gloom on housing

HOUSE prices were predicted to fall another 10% in the next year, prompting fears of a once-in-100-year real estate slump or worse - a US-style meltdown. Australian Property Monitors said values had fallen in most capital cities in the three months to June 31.

However, economists predicted prices would remain stable as long as unemployment remained low.

WORLD

$318bn homes rescue

The US Senate approved an ambitious rescue plan for mortgage finance giants and thousands of home owners facing foreclosure in a volatile housing market.

The $US300 billion ($A317.9billion) in guarantees to help refinance troubled mortgages came as the Government shut two more banks, for a total of 10 in 18months.

Tiger to lobby Canberra

Tiger Airways Australia plans to lobby the Federal Government for permission to fly internationally, with its sights set on Malaysia in particular. New managing director Shelley Roberts said she would present Tiger's case as part of a white paper on aviation policy.

WINNERS & LOSERS WINNERS

NAB gets young chief

PENRITH-BORN Bank of New Zealand boss Cameron Clyne has been named successor to outgoing National Australia Bank chief executive John Stewart.

Mr Clyne, 40, will be the bank's youngest chief executive, with an annual base salary of $2.5 million, plus bonuses and share rewards.

ANZ get thumbs up

ANZ was given a vote of confidence after its decision to provide another $1.2 billion to cover bad debts, with two major credit agencies maintaining its all-important double-A rating.

Of the Big Four banks, ANZ now has the highest provisions.

Typing terror

EXECUTIVES and stockbrokers feared the crash had arrived on Thursday when the All Ordinaries Index plunged 85 points and the S&P/ASX 200 Index 82 points in seconds. The tumble turned out to be a blip in the system caused when a broker made a typing error.

LOSERS

AWB charges likely

FORMER senior AWB executive Charles Stott learned he is likely to face criminal charges over his role in the $300 million Iraq kickbacks scandal.

The oil-for-food taskforce plans to hand a brief recommending criminal charges to the Commonwealth Director of Public Prosecutions within months.

Tenants face squeeze

RESIDENTIAL tenants are set to be squeezed further, with rents predicted to rise another 10% this year because of a fall in home-building approvals. Australian Bureau of Statistics figures show approvals ped nearly 8% in a year to their lowest since the end of 2006, although Victoria faired better than other states.

Confidence slumps

CONFIDENCE among Victorian business owners has fallen further according to a Visa-Victorian Employer's Chamber of Commerce and Industry survey that revealed the glummest outlook for more than a decade. Pessimism about general business conditions was even more marked when compared with the high point in confidence this time last year.

QUOTES OF THE WEEK

"Having to announce these sorts of provisions is beyond disappointing. In fact, it probably warrants the kind of language that I've become somewhat renowned for." MIKE SMITH, ANZ boss, who this year said he was "pissed off" by Opes Prime

"Excuse me while I change my pants."

A BLOGGER, on hotcopper.com.au, after a small typing error sent the Australian

sharemarket into free fall for 20 minutes on Thursday

"In a perverse way, it is actually good that the market has got this low expectation as I suspect we're going to surprise them in the positive. And that's never a bad thing to do with the market." ARTHUR HOOD, Lihir managing director on market doubts about his search for gold in Ballarat

"Just a mug investment. I'm a big boy and I need a flogging. I've probably had it halfway by the money I've lost, but maybe 20 lashes on my bare back might stop me from doing something silly again."

GERRY HARVEY , Harvey Norman chairman on his investment in Bill Express

"You are having the worst of all possible worlds. Wealth is declining, the source of wealth creation and costs are rising simultaneously."

CHRIS DODD, US Democrat, on America's banking and housing crisis

"There is deep-seated unhappiness with the way Brendan (Nelson) has damaged the party by the appearance of . hopeless confusion . over climate change." A senior Liberal source on a decision to withdraw support for Dr Nelson's leadership