Healthy banks getting together to save one of their industry brothers.
First Republic Bank gets $30 billion in deposits from big banks (msn.com)
First Republic Bank gets $30 billion in deposits from big banks (msn.com)
First Republic Bank
- Thread starter Darts
- Start date
Canadian banks are at bigger risk. They write million dollar mortgages to people earning 80k a year (140k couple). BofC has lagged the Fed in raising rates to counter inflation because they know it'd destroy Canada's economy (housing).
I feel they can collapse anytime and the Canadian govt can't even afford a bailout since they blew it all on COVID restrictions (to enrich govt approved suppliers - aka criminals - with lucrative contracts).
I have $600 in my Canadian bank account that's it.
I feel they can collapse anytime and the Canadian govt can't even afford a bailout since they blew it all on COVID restrictions (to enrich govt approved suppliers - aka criminals - with lucrative contracts).
I have $600 in my Canadian bank account that's it.
Bank regulations are much, much stricter and capital requirements much more fulsome in Canada than in America.
As they need to be due to overpriced housing market. If they were any looser, the govt would be asking the IMF for bailout.
The last time the Canadian government "bailed out" the Canadian banks, I think the government received back mortgage assets in return for loans. I think the government got back every cent of their loans to the bank.
The government (i.e. taxpayers) didn't lose a single cent and still continues to reap huge tax revenues from the banks.
Let's see if it works this time. 7% inflation, wage stagnation, and million dollar mortgages. Either this (IR hikes); or they pause/slow rate hikes and build a huge trade deficit (USDCAD= 1.8) with next door neighbor.
One of the major roles of government is to help the needy when they need a hands up.
In the 1930's the great province of Alberta (before they found oil and the arrival of the Ukes) was bankrupt and saved by the federal government. I think Alberta is now and has been for a long time a "have" province.
Don't tell anybody, I was part of a group who met with then Deputy Minister of Finance David Dodge. He said a Canadian province was on the verge of bankruptcy.
Saskatchewan staved off bankruptcy in the '90s. Is there hope for N.L., too? | CBC News
In the 1930's the great province of Alberta (before they found oil and the arrival of the Ukes) was bankrupt and saved by the federal government. I think Alberta is now and has been for a long time a "have" province.
Don't tell anybody, I was part of a group who met with then Deputy Minister of Finance David Dodge. He said a Canadian province was on the verge of bankruptcy.
Saskatchewan staved off bankruptcy in the '90s. Is there hope for N.L., too? | CBC News
