THE NEWS WRAP: Regulators, government and banks to blame for GFC – US report

Business leaders have balked at Julia Gillard’s proposed flood levy, claiming that it will hit retail spending and risk destabilising the economy.

Green groups have also reacted with dismay after Gillard revealed that the Federal Government would take an axe to several environmental programs. The ‘cash for clunkers’ scheme will be scrapped, with further cuts to solar and carbon capture schemes. 

GFC was “avoidable”: Report

The global financial crisis was triggered by the “avoidable” actions of regulators, politicians and bankers, according to a new report.

The US Financial Crisis Inquiry Commission said that excessive risk-taking by banks, lax regulation, households taking on too much debt and the Federal Bank’s monetary policy were all to blame for the downturn.

Ikea founder admits secret foundation

The founder of furniture giant Ikea has admitted that he still controls the company via a previously-unknown foundation. Ivar Kamprad said that the Interogo Foundation was controlled by family members.

A Swedish TV documentary alleges that the foundation has been used as a cover to help Kamprad avoid taxes, a charge he denies.

Overnight

The Dow Jones industrial average was up 11.58 points to 11,997.02. The Australian dollar fell slightly, to 99.2 US cents.