THE NEWS WRAP: Australians face housing cost pressure

Australia’s leading banks have been told to come up with “recovery plans” to prove that they will be able to cope with another financial downturn.

The Australian Prudential Regulation Authority has given the banks until the end of the year to deliver their draft plans, with the final proposals set to be finished by mid-2012.

It’s hoped that the plans will provide more certainty to the Government, as well as small businesses worried about their finances during a downturn.

Australians face housing cost pressure: Report

A significant proportion of Australians are under severe financial pressure due to their housing costs, according to Reserve Bank of Australia documents.

The report says that many Australians took out mortgages between 2004 and 2007, creating a housing bubble that has left one in 10 people in poverty.

Choice names and shames Shonky products

An electricity saving device, a bejewelled baby dummy and a costly smartphone app have been named among the worst products and services by consumer group Choice.

In its annual Shonky awards, Choice highlighted eight different offenders. The Go 4 Green energy device does not work, the dummy is a choking risk and the Smurfs app has seen children rack up hundreds of dollars in bills.

Choice also named and shamed slimming products that do not work and a Chinese car that comes with a roof rack for “cosmetic purposes”.

Overnight

Dow Jones industrial average fell by 205.18 points, or 1.72%, to 11,708.44. The Australian dollar dipped to 104.2 US cents.