Momentum may be reaching a peak over the federal government's activist policy package on banking, with talk of an announcement by the Treasurer, Wayne Swan, this Sunday.Speculation over the contents of the policy plan is centring on a widening of the Australian Office of Financial Management's mandate so it becomes an investor and guarantor of pools of mortgage securities.The AOFM seems set to become an investor, and price leader, in subordinated tranches of mortgage-backed securities rather than restricting itself to AAA-rated senior debt, as it does now.Some version of the Canadian system of guarantees on mortgage bonds, with the AOFM once again at its centre, is also being talked about.Whether there will be separate help for credit unions and mutual building societies, and smaller banks, to renew access to guarantees on wholesale borrowing outside this framework is less clear.Credit unions and mutual building societies may get help to distribute franking credits to investors other than their current shareholders, is also being discussed, though this is bound to need a change in the law.The government may also be supportive of existing plans for a group of 25 credit unions to sell a second hybrid capital instrument to a group of investors. This would be similar to a security sold five years ago.The extension and perhaps reduction in the limits on the retrail guarantee wil also have to be made clear.Calls for action on what some interest groups call "demand side measures" is strong.The Australian Council of Trade Unions, the Finance Sector Union and Choice joined six other consumer and business lobby groups yesterday to call for easier account switching (which the banking sector mostly opposes); a clamp on product fees so they reflect costs only, and more transparent, and comparable, product information.