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Hope No Canadian Banks

Darts

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Jan 15, 2017
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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.
 
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oakvilleguy

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Unlikely. Ours don't lend to US hedge funds generally.
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.
 

oakvilleguy

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No significant bank has failed in Canada since before the Depression. Before, not during. Best banking system in the world.
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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Darts

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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.
 

Soccersweeper

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Apr 24, 2018
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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.
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.
 

Soccersweeper

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Apr 24, 2018
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Toronto
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.
But it's not a major or even a medium bank and didn't fail. Which proves my point.
 
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Soccersweeper

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Apr 24, 2018
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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.
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.
 
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Darts

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But it's not a major or even a medium bank and didn't fail. Which proves my point.
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.
 
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Soccersweeper

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Apr 24, 2018
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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.
Name them. I guarantee they weren't Schedule 1 banks and almost certainly not schedule 2 banks.
 

Soccersweeper

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Apr 24, 2018
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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.
Again, none of which were significant institutions. That'd be like crying the sky is falling if a credit union failed. Who cares?
 

oakvilleguy

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Nov 30, 2005
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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.
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.
 

oakvilleguy

Well-known member
Nov 30, 2005
1,175
847
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At a SP near me
Name them. I guarantee they weren't Schedule 1 banks and almost certainly not schedule 2 banks.
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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