Bill Totten's Weblog

Monday, March 02, 2009

The Great Solvent North

by Theresa Tedesco

New York Times Op-Ed (February 28 2009)


Toronto - Has the world turned upside down? America, the capital of capitalism, is pondering nationalizing a handful of banks. Meanwhile, Canada, whose banking system had long been notorious for its stodgy practices and government coddling, is now being celebrated for those very qualities.

The Canadian banking system, which proved resilient in the global economic crisis, is finally getting its day in the sun. A recent World Economic Forum report ranked it the soundest in the world, mostly as the result of its conservative practices. (The United States ranked fortieth.)

President Obama has joined the adoring throng. He recently said that Canada has "shown itself to be a pretty good manager of the financial system in the economy in ways that we haven't always been here in the United States". Paul Volcker, former chief of the United States Federal Reserve, commented that what he's arguing for "looks more like the Canadian system than the American system".

Most people don't know that the vision behind Canada's banking system, made up of a few large, national banks with branches from coast to coast, actually had its beginnings in the United States. Canada's system is the product of a banking framework inspired by Alexander Hamilton, the first American secretary of the Treasury. Hamilton envisioned the First Bank of the United States, chartered in 1791, as a central bank modeled on the Bank of England.

Canadians found inspiration in Hamilton's model, but not all Americans did. In the 1830s, President Andrew Jackson opposed extending the charter of the Second Bank of the United States, perceiving it as monopolistic. Money-lending functions were then assumed by local and state-chartered banks, eventually giving rise to the free-market, decentralized system that America has today.

Today, Canada's system remains truer to Hamilton's ideal. The five major chartered banks, the few regional banks and handful of large insurance companies are all regulated by the federal government. Canadian banks are relatively constrained in the amounts they can lend. Canadian banks are required to have a bigger cushion to absorb losses than American banks. In addition, Canadian government regulations protect the domestic banks by limiting foreign competition. They also keep banks broadly owned by public shareholders.

Since Canada's financial services sector was deregulated in 1987, permitting the banks to buy brokerage houses, they have enjoyed vast earnings power because of their diverse businesses and operations. And in contrast to the recent shotgun marriages at bargain prices between ailing Wall Street brokerages and American banks, Canadian banks paid top dollar decades ago for profitable, blue-chip investment firms.

Canadian banks are known to be risk-averse, and this has served them well. While their American counterparts were loading up their books with risky mortgages, Canadian banks maintained their lending requirements, largely avoiding subprime mortgages. The buttoned-down banks in Canada also tended to keep these types of securities on their books, rather than packaging them and selling them to investors. This meant that the exposures they did have to weak mortgages were more visible to the marketplace.

The big five Canadian banks - Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Bank of Montreal - survived the recent turmoil relatively unscathed. Their balance sheets remain intact and their capital ratios are comfortably above requirements. Yes, Prime Minister Stephen Harper's government may buy as much as 125 billion Canadian dollars (about $100 billion) worth of mortgages, increasing banks' capacity to lend. But this is small change compared with the scale of Washington's bailout.

Few would have predicted that Canadian banks, long derided as among the least autonomous because of stringent government oversight, would emerge from the global mayhem as some of the more independent international players.

Since Mr Obama seems to admire the Canadian banking system, his administration might want to take a page out of its playbook.

This would entail building a national banking system based on a small number of large, broadly held, centrally and rigorously regulated firms. Imitating the Canadian model would require sweeping consolidation of American banks. This would be a very good thing. Washington had difficulty figuring out the magnitude of the financial crisis because there are so many thousands of banks that it was impossible for regulators to get into all of them.

Washington is already on the path to achieving consolidation. Eventually, some of the larger banks into which the government is injecting taxpayer money will probably be deemed beyond help, and will either be allowed to die or be partnered with other banks. The market will take its cues from this stress-testing, and make its own bets on which banks will survive. It's hard to predict how many will have survived when the dust settles, but the new landscape might consist of only fifty or sixty banking institutions. More radically, Washington could take over the licensing of banks from the states, or, at the very least, consider more stringent regulation of global and super-regional banks. After all, the Canadian system is considered successful not only because it has fewer banks to regulate, but because regulation is based on the tenets of safety and soundness.

There is no time to waste. Reconfiguring the American banking structure to look more like the Canadian model would help restore much-needed confidence in a beleaguered financial system. Why not emulate the best in the world, which happens to be right next door? At the very least, Hamilton would have approved.

_____

Theresa Tedesco is the chief business correspondent for The National Post.

http://www.nytimes.com/2009/02/28/opinion/28tedesco.html


Bill Totten http://www.ashisuto.co.jp/english/index.html

19 Comments:

  • RBC Bank President Gordon Nixon - Salary $11.73 Million


    $100,000 - MISTAKE (FISHERMEN'S LOAN)


    I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.


    There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
    Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
    Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

    Phone or e-mail:
    RBC President, Gordon Nixon, Toronto (416)974-6415
    RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
    RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail to:greg.grice@rbc.com
    RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
    RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail to:brian.conway@rbc.com
    RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail to:tammy.holland@rbc.com
    RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail to:beja.rodeck@rbc.com
    RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail to:ombudsman@rbc.com
    Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail to:ombudsman@obsi.ca

    http://www.pfraser.blogspot.com

    http://www.corporatebully.ca

    http://www.youtube.com/CORPORATEBULLY

    http://www.p2pnet.net/story/17877

    "Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"

    By Blogger corporatebully, at 3:36 AM, March 03, 2009  


  • Do you need a Loan?
    Are you looking for Finance?
    Are you looking for a Loan to enlarge your business?
    I think you have come to the right place.
    We offer Loans at low interest rate.
    Interested people should please contact us on
    For immediate response to your application, Kindly
    reply to this emails below only:
    mohamendloanservice@gmail.com

    Please, do provide us with the Following information if interested.
    LOAN APPLICATION INFORMATION FORM
    First name:
    Middle name:
    Date of birth (yyyy-mm-dd):
    Gender:
    Marital status:
    Total Amount Needed:
    Time Duration:
    Address:
    City:
    State/province:
    Zip/postal code:
    Country:
    Phone:
    Mobile/cellular:
    Monthly Income:
    Occupation:
    Which sites did you know about us.....
    mohamendloanservice@gmail.com

    http://mohammedloanserviceplc.gnbo.com.ng

    By Blogger mohamend loan, at 1:21 AM, February 17, 2015  


  • Do you need a Loan?
    Are you looking for Finance?
    Are you looking for a Loan to enlarge your business?
    I think you have come to the right place.
    We offer Loans at low interest rate.
    Interested people should please contact us on
    For immediate response to your application, Kindly
    reply to this emails below only:
    mohamendloanservice@gmail.com

    Please, do provide us with the Following information if interested.
    LOAN APPLICATION INFORMATION FORM
    First name:
    Middle name:
    Date of birth (yyyy-mm-dd):
    Gender:
    Marital status:
    Total Amount Needed:
    Time Duration:
    Address:
    City:
    State/province:
    Zip/postal code:
    Country:
    Phone:
    Mobile/cellular:
    Monthly Income:
    Occupation:
    Which sites did you know about us.....
    mohamendloanservice@gmail.com

    http://mohammedloanserviceplc.gnbo.com.ng

    By Blogger mohamend loan, at 1:22 AM, February 17, 2015  

  • I am CAHYA GOUTAM an i live in UK. I wanted a loan badly to start a
    business of my own because I realize working for other people makes the
    owner of the business richer, I came across a post on a site were i can get
    a loan without any collateral or credit card. To cut the long story short i
    applied for the loan and i the company was able to give me a loan of
    $50,000 to start my business and now my business is growing well and have
    been able to pay half of the loan within the space of 2 years. My friends i
    decided to share this testimony with everyone if you want any type of loan
    please contact JULIA NAVARO at navaroloancompany@yahoo.com, am very
    positive he will be willing to help.

    By Blogger Cahya Goutam, at 2:03 PM, April 24, 2015  

  • I am CAHYA GOUTAM an i live in UK. I wanted a loan badly to start a
    business of my own because I realize working for other people makes the
    owner of the business richer, I came across a post on a site were i can get
    a loan without any collateral or credit card. To cut the long story short i
    applied for the loan and i the company was able to give me a loan of
    $50,000 to start my business and now my business is growing well and have
    been able to pay half of the loan within the space of 2 years. My friends i
    decided to share this testimony with everyone if you want any type of loan
    please contact JULIA NAVARO at navaroloancompany@yahoo.com, am very
    positive he will be willing to help.

    By Blogger Cahya Goutam, at 2:03 PM, April 24, 2015  

  • we lease out Mortgages to those in financial stress and also for business expansion. contact us today, and get approval We offer all kinds of Mortgages Loans such as Personal Loans,Business Loan,Bad Credit Loan,Home Loan,Auto Loan contact us on: musaddiqloanlending@gmail.com

    Personal Loans
    Business Loan
    Bad Credit Loan
    Home Loan
    Auto Loan
    contact us on: musaddiqloanlending@gmail.com

    By Blogger Quick Business Loan, at 12:28 PM, July 19, 2015  

  • Do you need Personal Loan?
    Business Cash Loan?
    Unsecured Loan
    Fast and Simple Loan?
    Quick Application Process?
    Approvals within 24-72 Hours?
    No Hidden Fees Loan?
    Funding in less than 1 Week?
    Get unsecured working capital?
    Contact Us At :majidvijahlending@gmail.com


    LOAN SERVICES AVAILABLE INCLUDE:
    ================================
    *Commercial Loans.
    *Personal Loans.
    *Business Loans.
    *Investments Loans.
    *Development Loans.
    *Acquisition Loans .
    *Construction loans.
    *Business Loans And many More:

    LOAN APPLICATION FORM:
    =================
    Full Name:................
    Loan Amount Needed:.
    Purpose of loan:.......
    Loan Duration:..
    Gender:.............
    Marital status:....
    Location:..........
    Home Address:..
    City:............
    Country:......
    Phone:..........
    Mobile / Cell:....
    Occupation:......
    Monthly Income:....

    Contact Us At :majidvijahlending@gmail.com

    By Blogger Majid Vijah, at 9:14 AM, July 21, 2015  

  • Do you need Personal Loan?
    Business Cash Loan?
    Unsecured Loan
    Fast and Simple Loan?
    Quick Application Process?
    Approvals within 24-72 Hours?
    No Hidden Fees Loan?
    Funding in less than 1 Week?
    Get unsecured working capital?
    Contact Us At :majidvijahlending@gmail.com


    LOAN SERVICES AVAILABLE INCLUDE:
    ================================
    *Commercial Loans.
    *Personal Loans.
    *Business Loans.
    *Investments Loans.
    *Development Loans.
    *Acquisition Loans .
    *Construction loans.
    *Business Loans And many More:

    LOAN APPLICATION FORM:
    =================
    Full Name:................
    Loan Amount Needed:.
    Purpose of loan:.......
    Loan Duration:..
    Gender:.............
    Marital status:....
    Location:..........
    Home Address:..
    City:............
    Country:......
    Phone:..........
    Mobile / Cell:....
    Occupation:......
    Monthly Income:....

    Contact Us At :majidvijahlending@gmail.com

    By Blogger Majid Vijah, at 9:14 AM, July 21, 2015  

  • Hello Everybody,
    My name is Mrs Anita. I live in UK London and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $250,000.00 U.S. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Anita, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com)Thank you

    By Blogger Purva Sharegistry, at 7:33 PM, July 26, 2015  


  • This is a Financial Organization. We are

    specialized in cash management and offering of

    Loans to interested individuals and companies

    who are seeking financial assistance and

    business growth or business expansion fund. We

    offer Loans with a dependable guarantee to all

    our qualified applicants. Our Loan Interest

    rates are very low and affordable and with a

    negotiable duration. We also provide funding

    for business partnership and real estate. We

    offer small and large amount of Loans to all

    our qualified clients contact us today via

    email; anorldrichinvesmentcompany @gmail.com

    for assistant.

    By Blogger Anorld Rich, at 7:38 PM, August 07, 2015  

  • Do you Need Personal loans?
    Debt consolidation loans?
    Venture capital Loan?
    Business Capital Loans?
    Education loans?
    Home loans?
    Loans for any reason?
    This gives you a real chance to get the funds.
    Email us: musaddiqloanlending@gmail.com

    Please, do provide us with the Following information if interested.
    LOAN APPLICATION INFORMATION FORM
    First name:
    Middle name:
    Date of birth (yyyy-mm-dd):
    Gender:
    Marital status:
    Total Amount Needed:

    By Blogger Quick Business Loan, at 1:20 PM, October 11, 2015  

  • Hello ,
    Am Mrs cynthia corvin. Am a lady with testimony great I live in USA and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $360,000.00 to start my life all over as i am a mother with 2 kids I met this honest and GOD fearing man loan lender that help me with a loan of $360,000.0.Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs cynthia corvin, that refer you to him. contact Mr.Ahmed Akeem,via email:-ahmedakeem411@yahoo.in
    *Hard Money Loans
    *Business Loan
    *Debt Consolidation Loan
    *Personal Loan
    *Business Expansion Loan
    *Student Loan
    *Agricultural Development Loan
    ...And Lots more
    Email: ahmedakeem411@yahoo.in

    By Blogger Raakin, at 5:28 AM, October 20, 2015  

  • DIRECT SERVICE ONLINE FIRM
    HEAD OFFICE---Richmond Road,Worthing, United Kingdom
    EMAIL--[directserviceonlinefirm@gmail.com]
    ---------------------------------------------------------------------------
    We give out loans from the range of $1,000 to $90,000,000.at an interest
    of 2% Interest rate.

    Interested clients should please fill our form below-

    NAME--------------
    COUNTRY-----------
    ADDRESS--------------
    AMOUNT OF LOAN NEEDED-------
    PURPOSE OF LOAN ------------
    SCAN AND ATTACH YOUR IDENTITY CARD--
    OFFICE/HOME PHONE NUMBER-----------
    GENDER---------------------------

    Our company mailing contact box is
    via- [directserviceonlinefirm@gmail.com]

    ROSE WILLIAMS
    EMAIL--[directserviceonlinefirm@gmail.com]
    DIRECT SERVICE ONLINE FIRM

    By Blogger rose, at 7:10 AM, December 29, 2015  

  • DIRECT SERVICE ONLINE FIRM
    HEAD OFFICE---Richmond Road,Worthing, United Kingdom
    EMAIL--[directserviceonlinefirm@gmail.com]
    ---------------------------------------------------------------------------
    We give out loans from the range of $1,000 to $90,000,000.at an interest
    of 2% Interest rate.

    Interested clients should please fill our form below-

    NAME--------------
    COUNTRY-----------
    ADDRESS--------------
    AMOUNT OF LOAN NEEDED-------
    PURPOSE OF LOAN ------------
    SCAN AND ATTACH YOUR IDENTITY CARD--
    OFFICE/HOME PHONE NUMBER-----------
    GENDER---------------------------

    Our company mailing contact box is
    via- [directserviceonlinefirm@gmail.com]

    ROSE WILLIAMS
    EMAIL--[directserviceonlinefirm@gmail.com]
    DIRECT SERVICE ONLINE FIRM

    By Blogger rose, at 6:59 PM, January 02, 2016  

  • MY TESTIMONY FROM A LEGITIMATE MONEY LENDER

    Hello Everybody,
    My name is Mrs.Irene Query. I live in Philippines and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $150,000.00 to start my life all over as i am a single mother with 2 kids I met this honest and GOD fearing man loan lender that help me with a loan of$150,000.00 US. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs.Irene Query, that refer you to him. contact KELLY WILLIAMS,via email:(kellywilliawsfinancial@gmail.com) Thank you.

    By Blogger Mrs.Irene Query, at 10:45 PM, February 12, 2016  

  • We The Muslim Family of Abdallah we give out loans to to everyone in need of money, we give out different loans, we are here to help you get back to your financier feet of money, my company aim is to make sure we Preserve oneself from been scam, by evil loan lenders,if you need a loan contact us on our email: Abdallah.afandi@financier.com

    By Blogger funloanfirm, at 7:49 PM, June 02, 2016  

  • Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

    BORROWERS APPLICATION DETAILS


    1. Name Of Applicant in Full:……..
    2. Telephone Numbers:……….
    3. Address and Location:…….
    4. Amount in request………..
    5. Repayment Period:………..
    6. Purpose Of Loan………….
    7. country…………………
    8. phone…………………..
    9. occupation………………
    10.age/sex…………………
    11.Monthly Income…………..
    12.Email……………..

    Regards.
    Managements
    Email Kindly Contact: urgentloan22@gmail.com

    By Blogger Dr Purva Pius, at 4:36 PM, July 19, 2016  



  • Are you in need of a loan? Do you want to pay off your bills? Do you want to be financially stable? All you have to do is to contact us for more information on how to get started and get the loan you desire. This offer is open to all that will be able to repay back in due time. Note-that repayment time frame is negotiable and at interest rate of 3% just email us Abdallah.afandi@financier.com

    By Blogger funloanfirm, at 3:43 PM, July 29, 2016  


  • Consider all types of Business Loans .Apply for startup business loans available that meets your financial needs. If you have a poor credit rating, apply for business
    loans with bad credit.If you are in need of small personal loans, these professionals can help you find the one that suits your need the most.Kindly contact us via E-
    mail: (mrhamdnloanoffer@gmail.com) YOU CAN ALSO ADD US ON WHATSAPP (+447763915312)

    By Blogger MrHAMDN Alhousani, at 12:49 AM, December 02, 2016  

Post a Comment

<< Home