captnimo

Who Says There Were No Canadian Bank Bailouts?

I agree with most of your assessment. But keep in mind the context. The fed. gov't. supported the banks in light of the collapse of the mortgage back securities market collapse which was caused in large part by subprime mortgage defaults south of the border. 2. the domestic housing market in Canada has remained strong - fewer mortgages are 'underwater', considerably fewer defaults are occuring in the Canadian Economy at this point. In fact, whats considered a regular economic climate, the federal government has always backed mortgages through CMHC . Further, our banking rules have always been strong. As most recall the Federal government denied the banks the right to merge. Banks have never been given a carte blanche here in Canada.

This being said I think the government should take stong actions on bonuses. Also a strong position of risk management of bank portfolios. As an investor I don't think the price of the risk is properly included in the share price.

Revisiting Canadian Banks

Is it possible given the larger than expected decline in profit among some of the Cnd Banks and sizable challenges facing them that the dividend may actually decrease? Are we in uncharted territory with these banks? - or is there a period during these banks long history that they faced this kind of challenge? . Any insight.