There would have been controls on your risk position. The canadian banks keep their exposure low and do not making the bank-killing bets that others do.
Probably not but it's also not something ever likely to happen because of how they're run and regulated. If a major Canadian bank fails it's because we have bigger problems, like zombies in the streets.
I never said we don't deal with them, but we don't deal with them in a way that's ever going to expose us to this kind of damage. You would know that if you're an insider.
Then it sounds like you don't know what risk management sounds like. That's what I do. I approve (or not) your schemes. People like me make sure people like you don't screw us all up.
I think during the LDC crises but saved by "creative" accounting and the regulators.
In Canada, only two small regional banks have failed since 1923 when the Home Bank of Canada failed. This was both Canadian Commercial Bank and Northland Bank in September of 1985.[17] To put this into perspective there were no bank failures in Canada during the Great Depression, World War II, the 1979 Energy Crisis, the Dot-com Bubble, the Sept 11th Attacks or the Subprime Mortgage Crisis.
I was responding to your initial post (#2 of this thread) where you indicated Canadian banks don’t deal with US hedge funds. So now Canadian banks do deal with US hedge funds? Which is it?
Hahaha. Typical response from a risk manager. Every trade i put on has been blessed by your type so don’t come across as holier than thou as you are all complicit in these schemes as you call them. Try generating some pnl instead of being a cost centre.
One minute I sound like a sales guy, next I'm a typical risk guy. You don't know if you're coming or going. And sometimes risk gets overridden by higher ups who want to make a name for themselves, but most of the time your proposals only go forward once we're happy with them. And given the ironclad record of the big banks, that's a ringing endorsement of what we do. The billions we save in avoiding screw ups is worth more than entire profit for a year. This one example we're discussing here would have killed any Canadian bank's annual profit. One decision. Sales guys are a dime a dozen, easily trained and replaced. Risk is what's been in demand since 2008. No one wants to be the next Bear Stearns or Leeman Bros. Even HSBC and Deutchebank are hemmhorraging sales guys by the thousands right now. Didn't listen to their risk guys. P&L penny wise and risk pound foolish.
When it comes to market jargon I'm Sergeant Schultz, are you referring to zombie companies, Canada has a few. Canadian banks are also much more invested in the American market then they were in 2008. TD and RBC are, not sure about the others.
Yes without you around, none of the banks would still be in business. Great job! Tell me, is it difficult to onto the elevator with an ego as big as yours? Lol
The point of the original post was whether Canadian banks are risky. I have made the case that we have the best system in the world and its distinguishing secret sauce is risk management. Canada doesn't have the best and brightest profit makers, ie swollen members like you. Better and brighter and better paid work all over from NY to London to Singapore to Cayman, etc. The big deals occur elsewhere. What we have that's special is we take sensible risks and never blow our brains out on truly stupid ideas. Even CIBC, the Canadian bank most likely to walk into a sharp object and where I'd bet a reasonable amount you work, does not expose itself to the risks the "profit makers" around the world do. We cost centres make sure of that. As I said earlier, no significant Canadian bank has failed since before the Depression. What other countries can say the same? During the financial crisis the US was losing 3 banks a week for months. Their pnl counted for shit when things got real.
I was literally referring to zombies. The Canadian banks all have some capital markets exposure to the US but nothing considered too risky. TD's big exposure is through mortgages and branch banking. Something of a gamble but again nothing unusual and largely backed by physical real estate. RBC recently bought City National which caters to high net worth people which is pretty solid and sold its US branch chain years ago. Most of the banks have trimmed their Caribbean exposure. I don't seeany material exposure outside Canada right now, subject to what oakvilleguy is cooking up to justify his bonus.
