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Canada’s six largest banks designated “too big to fail” — 1 Comment

  1. Another version: http://www.cbc.ca/news/canada/story/2013/03/26/osfi-banks-capital.html

    The interpretation I gave in the above post about tax-payers being on the hook could be wrong.

    Another quote from above Toronto Star article hints that taxpayers might not be the direct target:

    “The measures . . . are designed to limit the likelihood that a major bank would encounter distress or failure that could negatively impact the Canadian economy or taxpayers,” OSFI head Julie Dickson said in a release.

    Also see the section in the federal budget talking about “bail-ins” and a bank’s liabilities.

    In light of what has happened with Cyprus bank depositors, what could that mean?

    See:
    http://canadianliberty.com/?p=13995
    Appears to be provision for Cyprus style “bail-ins” in the Canadian federal budget

    http://canadianliberty.com/?p=14013
    Another writer interprets Canadian federal budget “bail-in” as allowing for Cyprus-style confiscation of bank deposits

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