Australian government guarantees bank deposits

Last weekend the government announced that it is guaranteeing bank deposits for the next three years (Couriermail, ABC stories). This is interesting given the enormous profits the banks have made in recent years. Have they not put enough away for a rainy day? After all, they helped create the current mess.

While I don't want to lose any money I have deposited in the banks, I don't see it as appropriate for the government to use my tax dollars to help the banks profit. So before receiving one cent, the banks should deal with the consequences of their actions like any other business does - accept lower/no profit, cut costs (e.g. excessive executive salaries, exorbitant consulting fees), etc.

I am not an economist, anthropologist or sociologist, but perhaps there are bigger issues at play, such as the fractional-reserve banking system and Western society's (media-reinforced) consumer driven mentality.