Ottawa clears up confusion over bank �bail-in�

April 02 2013?

The original rules were proposed by the last Con gov't.

Justine, using his impressive imagination to make things better,
has used the same shit word for word.

The fact that they now have to run around and 'explain' it,
should give everyone cause for worry.


Ah, ok now I understand the date issue.



Garth has a bit on it in his latest blog entry.

http://www.greaterfool.ca/2016/03/25/merchants-of-fear/


Just remember, CDIC only works as long as the gov't says it does.
Until it doesn't.

There is no real life fund to protect deposits.

100% Not true. The CDIC does have a fund, funded by premiums paid by financial institutions, that currently has over $3billion in assets, which is triple the amount of insurable loses expected in a single year.

The original rules were proposed by the last Con gov't.

Justine, using his impressive imagination to make things better,
has used the same shit word for word.

The fact that they now have to run around and 'explain' it,
should give everyone cause for worry.


Ah, ok now I understand the date issue.



Garth has a bit on it in his latest blog entry.

http://www.greaterfool.ca/2016/03/25/merchants-of-fear/


Just remember, CDIC only works as long as the gov't says it does.
Until it doesn't.

There is no real life fund to protect deposits.

Garth Turner?

URL is fitting.

Sure.
Until there is a run on the banks.
You know, like Cyprus.
Then there is nothing.


Wiki
According to the CDIC's 2012 Annual Report, CDIC protects $622 billion CAD in total eligible deposits, and has $2.44 billion CAD in assets to meet insurance claims. This amount represents 0.39% of total eligible deposits. The CDIC is also authorized to borrow up to $19 billion if necessary from the federal government or the financial markets, and may request further funds from Parliament.

You want them to set aside a $622 billion dollar fund? Talk about your massive deficit.

You want them to set aside a $622 billion dollar fund? Talk about your massive deficit.


I would prefer that people know the truth.

Everything is insured, until the government says it isn't.

From your own link: Deposits would be excluded from the bail-in regime.

They said the same in Cyprus, until they didn't.

Sure.
Until there is a run on the banks.
You know, like Cyprus.
Then there is nothing.


Wiki
According to the CDIC's 2012 Annual Report, CDIC protects $622 billion CAD in total eligible deposits, and has $2.44 billion CAD in assets to meet insurance claims. This amount represents 0.39% of total eligible deposits. The CDIC is also authorized to borrow up to $19 billion if necessary from the federal government or the financial markets, and may request further funds from Parliament.

That's true of any kind of insurance anywhere, think of your car or house insurance for example. There is not enough money in the world to pay out every insured person if they all submitted insurance claims for their homes or cars at once. But of course that is statistically not likely to happen.

Insurance doesn't have to put one dollar aside for every dollar they insure that would be insane. They just have to have more money set aside than they are every likely going to need to have at once.

Now, Cyprus isn't Canada. Cyrpus is a small country with a modest economy and lax regulation. The Cyrpriot banks borrowed heavily and also invested heavily in risky foreign debts that defaulted, particularly in Greece.

In contast, in Canada, there is only so much risk that banks are allowed to take on -- thanks to regulations from that "big government" you righties hate so much. This is why Canada weathered the financial crisis with no melt-down of major banks.

It would take one hell of a tax increase to amass a fund twice the sum of Canada's annual revenue. I'm sure there would be whining from Martine about Justine doing that. Can't win.