US President Barack Obama has signed a historic law that will allow gay men and women to serve openly in the military. This ends the armed forces' controversial "don’t ask, don’t tell" policy. President Obama says the new law will strengthen national security.

 

Australia's financial regulator is prosecuting three banks involved in the collapse of the investment company Storm Financial. The company folded last year, leaving many investors penniless. The Bank of Queensland, the Commonwealth Bank and Macquarie have vowed to fight the legal action.

 

The Navy has uncovered more evidence in its hunt for sailors involved in a drug scandal. The Australian newspaper reports that it's identified 17 soldiers suspected of running a drug ring out of Sydney's Garden Island naval base. All the sailors are from the Fleet Support Unit, which is responsible for maintaining ships and submarines at the base.

 

And some residents on Christmas Island are now worried that the overcrowded detention centres there are ruining the tiny community. One resident is calling on the migration minister to cap the number of asylum seekers held on the island. And authorities have now found the relatives of the last of the three children who were orphaned in that Christmas Island boat tragedy.