James Weir writes a good summary of the major changes made yesterday to the deposit guarantee scheme. These changes are welcome as the original scheme was deeply flawed - because it was work in progress that Labour rushed because it wanted to fill a policy vacuum.
The Reserve Bank and Treasury rules on the guarantee have also been significantly toughened up on what finance companies in the scheme can and can't do.
The changes were announced yesterday after some big banks held talks with the Reserve Bank about the scheme this week.
