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home / archives / 1991 / 12th February

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Oh no!

South Australian Labor Premier John Bannon struggles in as the collapse of the State Bank of South Australia appears certain. The South Australian Government had underwritten the deposits held by the bank, and thus became libel for much of the debts. Having just survived the sale of the troubled State Bank of Victoria by Premier Joan Kirner, Labor Federal Prime Minister Bob Hawke and Treasurer Paul Keating found themselves leading a besieged national economy with two Labor held states in a great deal of trouble.

The bank finally collapsed in 1992 and Bannon resigned. The economic after effects of the bank's collapse were felt in South Australia for years after.