are affected by this fuckup.
Credit Suisse, Nomura take hit from U.S. hedge fund, warn of losses (cnbc.com)
Credit Suisse, Nomura take hit from U.S. hedge fund, warn of losses (cnbc.com)
Hope No Canadian Banks
- Thread starter Darts
- Start date
No significant bank has failed in Canada since before the Depression. Before, not during. Best banking system in the world.
There were a couple of bailouts. I think the Canadian government purchase some mortgages from the banks in 2008-9.
I'm getting worried about high Toronto house prices purchased with borrowed money.
Wrong !
All Canadian banks compete in the same space providing synthetic exposure to the equity and credit markets as these international banks. I know because I financed many US hedge funds working at a Canadian bank.
Don’t believe what you hear. 2 Canadians banks ran out of liquidity during the credit crisis when the cp markets seized and had no way to fund themselves. They were quietly “rescued” by the tax payers.
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Maybe not a major bank but Home Trust/Bank ran into a liquidity crises 2-3 years ago and was rescued by Warren Buffet.
Long story short. Home was a healthy institution but the OSC loudly announced to the world that they were investigating Home. That was enough for people to pull their money out of Home.
Long story short. Home was a healthy institution but the OSC loudly announced to the world that they were investigating Home. That was enough for people to pull their money out of Home.
You're wrong. I work in the industry and know my history. There are numerous markets and products we stick clear of, eg subprime mortgages that caused 2008. Capital markets exposure is a small portion of the Canadian banking industry. Business and personal loans is where it's at and we continue to sail through crisis after crisis unscathed. It's always US and European banks that shoot themselves in the head.
But it's not a major or even a medium bank and didn't fail. Which proves my point.
There was no bailout. The government wanted money lent to businesses quickly to keep the market going and rather than start a government program from scratch with inexperienced people, it bought banks' healthy mortgage portfolios to let them lend the money without impacting their tier 1 capital ratios. In fact the banks sold the mortgages for a slight discount so that as the government collected full value they made a profit. Which means our banks not only kept the market going but bailed out the government a bit, not the other way around. When you purchase something for fair market value, that's not a bailout, that's a market transacation. If you buy milk from your grocer you're not bailing him out.
Toronto prices are high cause of a lack of supply. Canadian borrowing relative to income has actually decreased since COVID, and Cabadians pat their mortgages. Foreclosure rates haven't budged.
I'm old enough to remember the great trust company debacle of the 1990's. The government of the day ordered the big banks to take them over. Royal Trust, Montreal Trust, Central Guaranty Trust, etc. all gone.
Name them. I guarantee they weren't Schedule 1 banks and almost certainly not schedule 2 banks.
Again, none of which were significant institutions. That'd be like crying the sky is falling if a credit union failed. Who cares?
I've got a tinfoil hat for you if you believe a secret bail out happened. Even the article you cite says that's BS. Just a left wing organization trying to make a headline. No serious person believes even a hint of such a thing.
"Too big to fail" I doubt the Canadian government will ever allow a big bank to fail.
Lehman Brothers - Wikipedia
Lehman Brothers - Wikipedia
No worries, Canadian Banks are doing just fine. I get a hard on more often than not when I log into my brokerage account and these bad boys make up 2/3 of my portfolio.
Dude. I wrote total return swaps aka synthetic pb (do you know what that they are?) facing US hedge funds for a big 5 Canadian bank. Not sure what part of the industry you work in but you should know this if you’re an insider.
They are scheduled 1 banks but you would know that if you worked in the industry.
Sounds like you’re an ops person or someone in reporting or technology trying to pass oneself off as knowing how the capital markets trade floor works. Or perhaps you are a discount broker who takes orders and executes them for $5 a trade?
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