lavalyn

Who Says There Were No Canadian Bank Bailouts?

I guess it's true that the banks got help in offloading their mortgage portfolio to the government. Mind you, it's not like the banks were really going to take default risk on those mortgages when they are insured by the CMHC - akin to Ginnie Mae moreso than Fannie or Freddie. CMHC is fully government backed, unlike Fannie and Freddie then. So yes, the banks got a book increase in Tier I, but calling that a bailout is disingenuous.

Canadian Banking System: An Oasis of Financial Calm

To jerbare: the Canadian bank "bailout" of buying Canadian mortgages from the banks... I see little issue with the government buying the mortgages of homeowners whose risk against default is insured by... the Canadian Mortgage and Housing Corporation, the wholly government-owned mortgage insurance company. If the taxpayer is already bearing the default risk because of the government-backed insurance, where's the bailout from buying them from the banks?