Taxes are going up, TO condo prices are going down and recreational property up 15% to 40% in the Canadian market.

What's Coming Is WORSE Than A Recession

Charlie Munger warns about the economic situation we’re in right now, saying that the troubles that come to us could be worse than the recession Paul Volcker was dealing with.
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Bitcoin regulations are coming

Lovers and haters of Bitcoin are polarized over the Ponzi. One thing is clear, regulations are coming.
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Are we in a bubble and, if so, when will it pop?

Since 2008 Canada has been pushing home prices higher. Canadian homes are considered by many to be the least affordable of all G20 nations. What gives?
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Canadian real estate and government, March 29

The latest Canadian real estate and government news. Risk of collapse, end of QE and rate rise are some of the issues discussed. Also the governments poor foreign policies on Ukraine are covered.
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FIRE report January 12th

Indigenous banking part 2 a continuation of earlier discussion of First Nations Bank. Other news:-Inflation-M&A under scrutiny-RBC has eyes on Europe
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BOC and reconciliation with Indigenous people

The Bank of Canada and other central banks, in conjunction with indigenous leaders want reconciliation and better economic outcomes for individuals. This video explores what is happening, gives the back story and sets the stage for a more in-depth analysis.
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Nov 26 FIRE report

Inflation and tariffs hit Trudeau in the face. Oil route as new strain goes viral. BNPL benefits questioned and investors open their wallets to receive dividends.
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FSIM FIRE report Nov 23

Duobank/Fairstone merger & Amozon boycott of Visa along with recent banking, insurance and real estate news from Canada.
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Nov 18th FIRE report

The latest financial news from the financial services industry monitor. Insurance companies should know that in 1990 BC flooding devastated the same flood plains as today. This report features coverage of insane inflation, interest rates hikes and the ongoing real estate melt-up.
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Poloz debunked, Nov 12 FIRE report

Poloz is wrong about inflation, university pension funds are out of their league, Home Capital run away, real estate wars and more from the financial services industry monitor.
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Central bank digital currencies: foundational prin

Central bank digital currencies: foundational principles and core features
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Nov 5th FIRE report

Topics todayDividends are backHigher interest rates are comingCOP26: Central bankers making miners richTO real estate melt-up
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FIRE report November 2nd

The latest Canadian FIRE news covering inflation risk and opportunities, Canadian Western bank expansion, governance and stablecoins.
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Canadian real estate February 24

Recap of recent real estate news in Canada. Tiff Macklem and market exuberance, cottage country price appreciation and the rise of lumber prices.
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Real estate: Feb 9, bulls vs bears

Bulls versus the bears, this week in the Canadian real estate industry.
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Feb 1, The Dumb Money Real Estate Vid

We a living a ponzi real estate market and the economy is at risk. Yet Doug Porter, economist BMO, is on record as saying Candian\'s want to pay more for houses. Yes, you can\'t make this stuff up. This video discusses the issues related to Porter\'s statement and explains why he is wrong.
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January real estate report 2021

2020 was a record year, except for condos. Montreal REM sites the exception to this rule. This video shares insights regarding the Canadian real estate segment.
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December 4th real estate report

Taxes are going up, TO condo prices are going down and recreational property up 15% to 40% in the Canadian market.
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Real estate, mortgage debt to income ratio improve

The mortgage debt to income ratio declined despite the pandemic. In this issue I discuss real estate stalling and immigration's impact on home prices.
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Real estate: fiscal conservatism/ponzi neoliberali

This video is intended to give viewers an understanding of the economic ideas behind Canada's potential housing bubble. This video also explains why Siddal, President and CEO of the CMHC, was likely pushed from his post.
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Caution for real estate investors, Oct 14th report

October 14th real estate report describing the issues in the market the last two weeks.
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Canadian bank industry overview - part 1

Overview of Canadian banking industry. This multi-part series looks at issues facing Canadian banks from a variety of angles. Part 1 examines the types of banks and scale using ROE and EBITDA as measures.
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Why insurance should partner with flood-claim.com

'Pros on the Go', a Fierce Tartan company are seeking insurance partners to pilot its new solution for streamlining the claims process.
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Canadian large bank comparison

Using financial data, Mark Sibthorpe compares the performance of TD bank to its rivals. TD grew faster in 2017 than its rivals, but was cited for aggressive sales practices.
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Current state of fintech in Canada

Mr. Michael R. King, Tangerine Chair in Finance and Co-Director, Scotiabank Digital Banking Lab / Ivey Business School at Western University
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XE.com explains their Big Data and AI strategy.

This video covers XE.com's presentation at the AI, Big Data and Analytics event which took place in Toronto February 7/8, 2018. Cecelia Tamez and Jean Louis provide insights into their evolution and winning strategy.
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Greenpeace urges TD bank boycott

Greenpeace's campaign to stop TD financing the oil sands is delusional. Trillions of dollars are at stake for the banks and the Canadian economy. This video explores the related financial issues.
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Insurance flood US vs Can comparison.

This video provides an overview of the main differences between Canada's approach to overland flooding versus the US approach.
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Canadian bank industry overview part 5

Canadian bank overview part 5, medium-large banks. Banks include Manulife, Tangerine and Laurentian Bank.
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Canadian banking industry overview part 4

Canadian banking industry overview of Canadian Tire Bank, Presidents Choice Financial, Equitable Bank, B2B Bank
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Part 3 Canadian bank industry overview

Overview of small-medium size banks in Canada. Banks covered include Versabank, Hollis Bank, Equity Bank and Caisse Populaire Acadienne.
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Canadian banking overview - part 2

Review of small banks including Bridgewater,Vancity Bank, Concentra, Wealth One, Zag...
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Death to bitcoin, long live bitcoin

Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.
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RBC to integrate Wave Technologies

RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.
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Deposits have skyrocketed since the start of the p

Canadian banks have increased their deposits by $127 billion since the start of the pandemic. This video uses charts to show which banks gained the most and how.
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About

About BankNews TV: financial services industry monitor (FSIM), analytics and research

Latest news and events for Canadian financial service companies, analytics, fintech and AI. BankNews.TV provide the latest technology news and reports for banks and insurance companies looking to compete in a rapidly changing market.

Analytical information and financial information related to technogies that can change your business.

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Research

abcd

Merchants should not waste time fighting card networks  

fsim.ca/docs/Card_fees_ongoing.pdf

Mark Sibthorpe

This is part one of a two part assessment of merchant frustration due to high credit card fees. The second part of this report will outline an alternative approach that merchants can consider. An approach that is a win for them and also for the card networks.


The full story of SVB March 12th, 2023  

fsim.ca/docs/SVB_special_report2.pdf

Mark Sibthorpe

Aggregated news and research related to SVB. Apart from SVB, included in this report is related news with respect to other banks and non-traditional companies looking to add financial services that also appear risky.


March 2023 bank earnings summary  

fsim.ca/docs/bankearningsfriday.pdf

Mark Sibthorpe

This report provides a snapshot into recent bank earnings and related news as published in fsim.ca reports.


Real estate report: October 30th, 2020  

fsim.ca/docs/Oct30rereportv1.pdf

Mark Sibthorpe

The big buzz in real estate recently is Mark Carney being scooped up by Brookfield. This means more juice for riskier borrowers. Brookfield, a huge player in real estate, both residential and commercial, recently bought its remaining shares from Sagen (Genworth MI Canada), which values the company at $3.8 bn.


VersaBank’s New High-Security VPN Proving Especially Valuable During COVID-19 Pandemic  

fsim.ca/docs/TailscaleReleaseMarch30FINAL.pdf

Press Release

VersaBank (TSX:VB) (“VB” or the “Bank”) today announced the implementation of its new high security Virtual Private Network (VPN) remote access software solution, developed in partnership with Tailscale, a leading provider of secure network connectivity solutions. The software enables VersaBank employees to securely and directly connect to all the Bank’s servers across multiple offices and cloud providers, using two factor authentication and with every connection encrypted. The Tailscale-based solution uses the Office 365 setup and Windows client/server applications that the Bank already had in place.


2014 FSIM when Bernanke visited Montreal  

fsim.ca/docs/MockBernanke.pdf

Mark Sibthorpe

Considering Bernanke is hated by the Republicans and hated even more by the Democrats, and is currently under scrutiny for saving AIG but not Lehman, (in hindsight) with respect to issues over solvency vs liquidity, the Montreal lovefest attended by 1,100 people yesterday must have been a welcome respite. Click the link to read the entire 2014 report.


Eisman's big Canadian bank short  

fsim.ca/docs/eisman2.pdf

Mark Sibthorpe

I have been reporting on Steve Eisman's short position for quite some time.  As the analyst reaction to Eisman shows (link below), Eisman has taken a lot of heat for shorting Canadian banks. Instead of capitulating, in September 2019 he publicly disclosed the fact that he added Canadian Tire to his position, He explains the rationale for this in a BNN interview late 2019. Essentially, his big concern with respect to banks was non-performing loans in Alberta. He feels Canadian bank CEOs are not prepared for a credit cycle. He specifically referenced ATB (a private bank) in discussing his concerns. Looking at the numbers today, my guess is that he has made off like a bandit.


VersaBank Beta-Testing Its New, High Volume Mortgage Finance App   

fsim.ca/docs/VBCortelMortFinanceAppFeb62020.pdf

Press Release

VersaBank announces it is initiating beta-testing on its newly developed high-volume mortgage software app with the Cortel Group, one of Canada’s largest home and condominium builders. The app, named “Direct Connect”, was designed to facilitate and significantly reduce the lengthy finance approval process typically experienced by home buyers when visiting home and condo pre-construction sales offices.


How and why you need to defend your brand against disruptors  

Mark Sibthorpe

Technology, and being open to opportunities, has preempted transformation in banking. At the top of change are Mint, PayPal and ApplePay; three examples of transformative solutions that are now ubiquitous. On the horizon: Uber and Google, both having recently announced partner based banking services. Further down in the plumbing is Duca Impact Labs, Versabank, and Revolut. This report shows how cost conscious FIs can, not only stay relevant in the face of adversity, but punch well above their weight. All thanks to creative thinking and the ongoing commoditization of technology.


Kick the can(nomics)  

fsim.ca/docs/Kick.pdf

Mark Sibthorpe

Canada has used consumer debt to provide life support to the economy. This strategy which basically pushed the day of reckoning to the next government was old back in 2014, and now is well past its sell-by-date. Recognizing this, and desperate to keep the economy out of a recession, Trudeau is spending more money now than any government in Canadian history. This report disusses a possible alternative.


ScoreCard Bill Morneau, Canada's Minister of Finance  

fsim.ca/docs/ScoreCardMorneau.pdf

Mark Sibthorpe

This report is a scorecard I designed in order to rank the performance of the current Minister of Finance, Bill Morneau. I do regular rankings because, otherwise, I cannot measure the performance in a meaningful way. The scoring is based on a variety of metrics as detailed on the ‘score-table’ on page 3. Examples of the criteria and weighting include:

 


Observations and overview of 2018 NB flood support from government and insurance companies.  

fsim.ca/docs/Observations and overview of 2018 NB flood support from government and insurance companies..pdf

Mark Sibthorpe

 


Flood aftermath is linked to post traumatic stress. Here are some findings from a study conducted by Queensland University following a flood:

"The findings showed that aftermath stress contributed to poor mental health outcomes over and above the flood itself, prior mental health issues and demographic factors," Ms Dixon said.

 

"Aftermath stress was the strongest predictor of post-traumatic stress symptoms with 75 per cent of people saying the most difficult aspect was the aftermath and dealing with insurance companies," she said.

 

With this in mind, I felt it was important to understand how New Brunswick flood victims were treated.

 


Update Argentina: a sign of the times  

fsim.ca/docs/Update Argentina_ a sign of the times.pdf

Mark Sibthorpe

Argentina is in the news daily because the situation is dire, and may be an indication of further contagion. The most dramatic story that speaks of the a leading cause of its troubles was the recent arrest of the public works secretary, Jose Lopez. June 15th he was caught hiding millions in cash in a monastery. No this is not a plot for a comedy.


Summary of Canada's flood news, 2017 to present  

fsim.ca/docs/Summary-of-flood-news-2017-present.pdf

Mark Sibthorpe

This report covers flood news in Canada from 2017 to present and highlights the relevent issues for home-owners and the insurance industry.


Banking on Pot  

fsim.ca/docs/c10191_banking-on-pot.pdf

SBS

As states across the US legalize marijuana for both medicinal and recreational purposes, it has fueled a growing industry of marijuana related businesses (MRBs).


Canadian banking industry overview  

Mark Sibthorpe

The industry overview is divided into 5 parts:

Introduction
Small banks
Small medium sized banks
Medium sized banks
Medium large banks


2014 Mobile payments the Apple pay way  

fsim.ca/docs/Mobile_Payments_Apple_Pay_2014.pdf

Mark Sibthorpe

With Walmart Pay about to userp Apple Pay, I thought I would share my 2014 book on mobile payments and loyalty. The guilde was written for Merchants that want to understand loyalty, credit, mobile payments and Apple Pay, but anyone involved with credit and loyalty might find it useful.
The book is a prelude to Walmart leaving MCX, and chronicles the evolution that led to Walmart Pay. There is an extensive case study of Walmart that looks into its efforts to become an ILC and to avoid paying credit card transaction fees ('merchant discount').
It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and industry facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives. 


Death to bitcoin, long live the blockchain   (See full report)

Mark Sibthorpe

Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.


TD bank industry conduct  

fsim.ca/docs/tdind2.pdf

Mark Sibthorpe

TD’s share price recently collapsed by $7 bn in one day due to CBC’s allegations of aggressive selling tactics. A huge fall from a bank that was trading at a premium as recently as January. This was even before the most recent allegation of TD attempting to avoid paying taxes on advertising.
This report chronicles the events leading up to the collapse, shows TD's performance, analyses other related issues.


Book review: Back from the Brink  

fsim.ca/docs/backbrink.pdf

Mark Sibthorpe

This is a book review of the book Back from the Brink by Paul Halpern, Caroline Cakebread, Christopher C. Nicholls and Poonam Puri.


Footnote 151  

fsim.ca/docs/footnote151.pdf

Mark Sibthorpe

Footnote 151 implies an important regulatory change related to derivative contracts. It means that US Banks will not be required to hold as much capital against commodities. If you want to understand the implications of this regulatory change in more detail, see the enclosed related article detailing the changes. For contextual purposes, I have also included two Rolling Stones Magazines reports from 2010 and 2014 that chronicle the role large US banks have played in manipulating commodities. You might question the credibility of these sources, but rest assured, these reports are based on United States Senate hearings which outline the issues in a 396 page report related to the implied risks. 


Save the Canadian economy now  

fsim.ca/docs/helecopter-money.pdf

Mark Sibthorpe

Consumer debt spending appears to have insulated Canada from the worst of the credit crisis, but now the alarming magnitude of consumer debt ($1.92-trillion) could exacerbate a day of reckoning.
This report assesses the issues at hand and recommends the solution to get Canada's economy on track.


Reasons financial service companies should consider gamification  

fsim.ca/docs/GamingEventProposal-printsample--en-final.pdf

Mark Sibthorpe

Gamification of business processes resulted on Mint.com growing to 10 million users within 4 years. This report explains how.


National Bank Special Report  

fsim.ca/docs/NatBSpec.pdf

Mark Sibthorpe

According to Bloomberg, National Bank of Canada will take a C$64 million ($48 million) restructuring charge in the fourth quarter and said its investment in Maple Financial Group Inc., which is being probed by German regulators, may be at risk of a “substantial loss.”


Will Canadian banks charge companies for deposits?  

fsim.ca/docs/depgrowthimpact2.pdf

Mark Sibthorpe

In light of today’s possible rate cut, this report discusses how a bank rate cut and capital ratio pressure could precipitate negative corporate deposit interest rates in Canada.


Canadian Tire's (CTC) - Canadian Tire Financial Services (CTFS) Scotia deal overview and risk assess  

fsim.ca/docs/ctfsfinal.pdf

Mark Sibthorpe

Review of the Canadian Tire Financial Services deal with Scotiabank, risks, opportunity and benefits.


Finance minisiter scorecard August 26, 2015  

fsim.ca/docs/Scorejo-August-2015.pdf

Mark Sibthorpe

This report looks at Joe Oliver, minister of finance’s progress to date, and assigns a grade to his government’s performance to date.


Xtreme Branch  

fsim.ca/docs/xbranch.pdf

Mark Sibthorpe

Branches are evolving to meet the digital age. This documents tracks the evolution with real-world examples.


Canadian Nudge  

fsim.ca/docs/nudge.pdf

Mark Sibthorpe

Whether he knew it or not, Tom Reid, a senior vice-president at Sun Life, made a case for the behavior modification concept ‘Nudging’ when he recently proposed auto-enrolling Canadians in his company’s pension plans. Sun life cover 1.2 million Canadians, about 60% of the eligible employees.
According to Reid,


CWB cause for concern  

fsim.ca/docs/cwbupdate.pdf

Mark Sibthorpe

In an earlier report BankNews.TV expressed concerns about CWB. Here are 5 charts that show cause:
1. First earnings drop in years;
2. Deposits dropping which will increase cost of funds in the future.


BNTV Overview  

fsim.ca/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

  • Analytics
  • Financial services industry monitor (FSIM) industry briefings and developments reports
  • Research


Challenger banks not a threat to big banks  

fsim.ca/docs/challenger.pdf

Mark Sibthorpe

This report looks at Canadian challenger banks (apart from merchant led banks) and explains why they have not threatened larger institutions. It also looks at ways in which these upstarts have achieved success.


Gamification of financial data project  

fsim.ca/docs/GamingEventProposal-printsample--en-final_original.pdf

Mark Sibthorpe

This document contains details on how BankNews.TV is helping kids learn programming via gamification of financial data.


The impact a rate rise will have for Canadian banks  

fsim.ca/docs/irr-f.pdf

Mark Sibthorpe

Canadian banks have made money throughout the credit crisis, but this trend may be about to reverse. The rational supporting this prediction is that revenue has grown despite a declining net interest margin (NIM). It has grown in spite of this fact because Canadian debt (loan lease volume) has risen significantly, as shown in chart 2.

This report looks at the issues facing Canadian banks in the event of a Bank Rate rise.  


FIFA: the new goldenballs  

fsim.ca/docs/goldenballs.pdf

Mark Sibthorpe

Yesterday, the Attorney General of Switzerland (OAG) opened criminal proceedings related to the FIFA scandal. This report outlines some of the events related to the criminal investigation, with a particular focus on banking.


Scorecard Minister of Finance: JIm Flaherty  

fsim.ca/docs/Scorecard Min Fin Flaherty April 8 2014.pdf

Mark Sibthorpe

March 18, Finance Minister Jim Flaherty resigned from cabinet after having endured a difficult year due to health issues. This report looks at his legacy and attempts to grade his government’s performance to date.


Sample RFP for a Loyalty Program  

fsim.ca/docs/sample RFP for a loyalty program.pdf

Mark Sibthorpe


Merchants extend financial services  

fsim.ca/docs/merchantfs.pdf

Mark Sibthorpe

Merchant led financial services are growing in importance once again. This is exemplified in the ongoing UK rivalry between ASDA, Sainsbury and Tesco. Together these merchant/financial service companies provide the backstop for three different approaches for merchants looking to extend their financial services.


Hot Money: real-estate  

fsim.ca/docs/hotmoney.pdf

Mark Sibthorpe

Canadian and London real estate, like Macau, may also be a convenient means for China’s elite to move money offshore; with the deleterious effect of driving up home values. Louise Shelley`s research concurs. In a published paper written for the National Defense University, Shelley argues that money laundering in real estate (MLRE) increases prices.


Currency Cheat Sheet: a guide for the rest of us  

fsim.ca/docs/currencycheatsheet.pdf

Mark Sibthorpe

Readers of this document will be presented with monetary policy issues and facts
that show the USD will likely remain the dominant reserve currency, despite
questionable Chinese practices, record US debt levels, and a shaky economy.


Riches to Rags? Summary of possible risks for Genworth MI CANADA, INC.  

fsim.ca/docs/gq4risk.pdf

Mark Sibthorpe

Genworth had its Q4 2014 earnings call. Genworth own about 30% of the mortgage default insurance in Canada. Not surprisingly, the earnings call became focussed on Alberta; and for good reason, with 20% of its outstanding insured mortgage balance in Alberta, sensitivity to the oil shock and how Genworth plan to manage related risks were discussed in detail.


Canadian Western Bank Competitive Forecast  

fsim.ca/docs/cwbf.pdf

Mark Sibthorpe

Based on historical financial data (see detailed charts pages 5-8), the oil based recession in Alberta, and comparison against two of its peers, this document outlines my observation with respect to CWB’s future performances.


Liquid Canada: the tipping point  

fsim.ca/docs/Liquid.pdf

Mark Sibthorpe

This report examines liquidity issues in the Canadian financial service industry.


Bank Fees  

fsim.ca/docs/Bank fees.pdf

Mark Sibthorpe

Recently the CBC and The Globe and Mail both reported on what has been referred to as a consumer “bank fee outcry”. CBC compares banks to cable and phone companies, standing accused of trying to gouge customers with service fees. The backlash appears to have originated in conjunction with the NDP and the Consumers Council of Canada which argues that there is anxiety ‘among consumers about banking fees’.


Cheap Oil Report  

fsim.ca/docs/co2.pdf

Cheap oil has pushed the Bank of Canada's governor, Stephen Poloz onto a slippery slope. For some background on this, take October 22nd, when Poloz bid farewell to forward guidance, resulting in yesterday's surprise rate cut. A cut that has enraged TD and other banks, which see this as eroding profits.
 


Canada's Economy, a strategic solution  

fsim.ca/docs/ces.pdf

This report explores Canada's strategies to compete globally. The report begins with an analyses of the housing market, because housing is the canary in the coal mine; explores what happens in the event of collapse; and analyses the underlying problem causing Canada to be uncompetitive.
 


Mobile Payments Blueprint: guide to credit and loyalty transformation for merchants  

fsim.ca/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Guide to system selection  

fsim.ca/docs/gssnow.pdf

Read sample report: Guide to system selection. This sample would normally cost $99 but is available free as a sample. Click here view sample report.


News feed

QUEBEC FINTECH REPORT FOR 2022

Linkedin - Finance Montreal, Station Fintech, Fathom4Sight (2023-03-28)

Download the report in French: http://ow.ly/JwJR50NrpZq


SALE OF SILICON VALLEY BANK IN U.S. WILL NOT INCLUDE CANADIAN OPERATIONS

G&M - Stefanie Marotta (2023-03-28)

The fate of Silicon Valley Bank’s Canadian operation is in the hands of its court-appointed liquidator, after the division was left out of First Citizens BancShares Inc.’s takeover of parts of the failed American technology lender.


BITCOIN IS SURGING AMID BANKING CRISIS, BUT THE REASON IS NOT WHAT CRYPTO BROS THINK

G&M - Jacob Silverman (2023-03-28)

As a slow-motion banking crisis rippled through markets in recent weeks, something strange happened: Crypto prices rallied, with Bitcoin rising from a low of about US$20,000 to about US$28,700 in a week. Other tokens followed. By recent market standards, this is practically a bull run, and the crypto industry responded accordingly, pronouncing crypto a safe haven amidst wider financial turmoil. Here was one of those much sought-after use cases – while regular banks suffer, crypto only grows.


CANADA’S MAJOR BANKS TARGET NEW CANADIANS WITH CREDIT CARD OFFERS

G&M - Kelsey Rolfe (2023-03-28)

One of the main financial hurdles for newcomers getting established in Canada is building a credit score from scratch. But a host of financial institutions – from the big banks to credit unions and fintechs – are competing to make that easier with credit card options targeted at new Canadians.


BINANCE AND CEO CHANGPENG ZHAO SUED BY CFTC FOR REGULATORY VIOLATIONS

CBC (2023-03-28)

Binance dominates the global digital asset sector. Its core Binance.com exchange, the world's biggest, processed trades worth about $23 trillion last year, according to data provider CryptoCompare. Its trading volumes hit $34 trillion in 2021.


MILLENNIAL CANADIANS DEALT GENERATIONAL LOSING HAND, LAYERED IN DEBT: INSOLVENCY TRUSTEE

CBC - Darryl Greer (2023-03-28)

The 2022 Joe Debtor study examined 2,700 personal insolvencies filed in Ontario. Hoyes Michalos says 49 per cent were filed by millennials aged 26 to 41, even though they make up 27 per cent of adult Canadians.


BRING TITLE INSURERS UNDER ANTI-MONEY LAUNDERING RULES, FORMER EXECUTIVE SAYS

Yahoo Finance (2023-03-28)

Tim Hyde, who spent years in the title insurance business in Ontario, said dozens of cases involving impersonators in Ontario and B.C. showed the need for title insurers to be designated as "reporting entities" under Canada's money laundering law.


BANKERS AT US MIDSIZE LENDERS BATTLE TO KEEP DEPOSITS AFTER EXODUS

Yahoo Finance (2023-03-28)

The difference between banks' promotional rates for new customers and average rates across the industry reached a record high this year as lenders competed for client deposits, according to Curinos, a bank data provider. The differential more than doubled between 2018 and 2023, from 1.4 to 3 percentage points.


WHY OTTAWA MIGHT BUTTRESS CANADA'S DEFENCES AGAINST BANKING TURMOIL

FP - Barbara Shecter (2023-03-28)

In the spring of 2022, on the eve of the federal government’s annual budget, things were roaring along nicely for the big banks after a profitable run during the COVID-19 pandemic that hammered many other businesses.


BUOYANT BITCOIN'S LOSING ITS LIQUIDITY

Reuters (2023-03-28)

The price of the No.1 cryptocurrency has jumped 40% to around $27,700 since March 10, when the failure of Silicon Valley Bank (SVB) careered into mainstream markets.


MOST SWEDISH MORTGAGE BORROWERS HAVE GOOD BUFFERS DESPITE RISING RATES, FSA REPORT SAYS

Reuters (2023-03-28)

"At the same time, the majority of new mortgagors continue to have good margins in their personal finances," it added.


SCHWAB’S $7 TRILLION EMPIRE BUILT ON LOW RATES IS SHOWING CRACKS

Bloomberg - Annie Massa, Edward Harrison (2023-03-28)

On the surface, Charles Schwab Corp. being swept up in the worst US banking crisis since 2008 makes little sense.


BANKING CRISIS RAISES CONCERNS ABOUT HIDDEN LEVERAGE IN THE SYSTEM

Bloomberg - Neil Callanan (2023-03-28)

As traders rush to identify where the next bout of volatility will come from, some watchdogs think the answer may be buried in the huge pile of hidden leverage that’s been quietly built over the past decade.


CANADIAN MORTGAGE RATES PULL BACK AHEAD OF SPRING MARKET

Better Dwelling (2023-03-28)

Canadian mortgage rates aren’t exactly tumbling, but they are coming down. An average conventional mortgage with a 5-term fell 0.05 points to 5.81% in February. It’s not a huge pullback, but notable for being the second consecutive drop since rate hikes began. It was also the largest monthly drop since July 2021, but more importantly showed a change of direction during a steep climb. 


U.S. BANK DEPOSITS SHIFT SHARPLY: MOODY’S

Investment Executive - James Langton (2023-03-28)

According to the Fed data, large banks gained $120 billion in deposits, small banks lost $109 billion in deposits, and deposits at foreign banks dropped by $65 billion in mid-March. (All figures in U.S. dollars.)


SEC SECURES ASSET FREEZE AGAINST ACCUSED CANADIANS

Investment Executive - James Langton (2023-03-28)

The SEC’s bid stemmed from a complaint filed in U.S. district court alleging that the defendants were involved with a massive international microcap fraud scheme that allegedly raised more than US$1 billion in gross proceeds and “caused significant harm to retail investors.”


FIRST CITIZENS BANK TO BUY SVB'S DEPOSITS, LOANS FROM FDIC

Gulfnews (2023-03-27)

The FDIC said the purchase of about $72 billion of SVB's assets came at a discount of $16.5 billion.


RENORUN MAY SEEK CREDITOR PROTECTION AFTER TIGER, GOVERNMENT FUNDS BALK AT FINANCING PLANS

G&M - Sean Silcoff (2023-03-27)

RenoRun Inc. was one of Canada’s hottest startups when it announced a US$142-million financing in early 2022 led by Tiger Global Management. The Instacart-like construction materials delivery service had tripled sales each of the prior three years and planned to repeat in 2022, reaching $120-million.


IN A WORLD PROPPED UP BY CHEAP MONEY, THIS BANKING CRISIS IS ONLY THE BEGINNING

G&M - John Rapley (2023-03-27)

One week into the 2023 chapter of the financial crisis, and it’s clear this is no 2008 redux. It may even end up being worse.


TOXIC TREASURIES COULD LEAD TO MORE TURMOIL IN GLOBAL FINANCIAL SYSTEM

G&M - Tim Shufelt (2023-03-27)

When trouble strikes in the financial system, there is often a toxic asset at the heart of the chaos.


CANADIAN BANKS CARRYING POTENTIAL LOSSES ON BONDS

G&M - David Milstead (2023-03-27)

The buzzwords of the U.S. banking crisis – uninsured deposits, losses on bonds, interest-rate risk – could be used to describe the banking industry in Canada as well.


U.S. BANKS ARE SITTING ON $1.7 TRILLION IN UNREALIZED LOSSES, RESEARCH SAYS. THAT’S NOT A PROBLEM—UNTIL IT IS

Yahoo Finance (2023-03-27)

Rising interest rates have slashed the value of the U.S. Treasuries and mortgage-backed securities that make up a large portion of many banks’ assets. In another paper, also from March 13, university researchers found that U.S. banks’ assets have lost 10% of their value over the past year alone.


WHY GLOBAL FINANCIAL TURMOIL CONTINUES AND HOW IT COULD AFFECT YOU

CBC - Don Pittis (2023-03-27)

"So far, the problems have been concentrated in U.S. regional banks and one specific weaker entity in Europe," said a report issued early Friday from the Netherlands-based ING, whose shares also fell sharply on the day. "The European issue has been more or less addressed by prompt interventions by the Swiss government and central bank.


SVB DEAL HELPS TO STEADY BANKS AMID CREDIT CRUNCH CONCERNS

Yahoo Finance - Scott Murdoch (2023-03-27)

The sale of failed Silicon Valley Bank to a regional U.S. peer helped stabilise shares in European lenders on Monday, after the sector was hammered last week by worries of systemic bank stress and a looming credit crunch.


BANKS ARE LEAKING MONEY

Yahoo Finance (2023-03-27)

"Unless banks are willing to jack up their deposit rates to prevent that flight, they will eventually have to rein in the size of their loan portfolios, with the resulting squeeze on economic activity another reason to expect a recession is coming soon," they warn.


BANK OF ENGLAND FOLLOWS IN FED FOOTSTEPS, RAISES RATES 25 BASIS POINTS TO 4.25%

FP - Joice Alves (2023-03-27)

Despite a surprise jump in price growth announced on March 22, the BoE raised interest rates by a further quarter of a percentage point on March 23 to 4.25 per cent and kept unchanged its message that its Monetary Policy Committee saw less urgency about maintaining its fast run of rate hikes.


HOW FIRST REPUBLIC'S COURTSHIP OF THE WEALTHY LED TO MELTDOWN

Reuters - Lawrence Delevingne (2023-03-27)

For years, First Republic lured high net-worth customers with preferential rates on mortgages and loans. This strategy also made it more vulnerable than regional lenders with less-affluent customers, since U.S. deposit insurance only guarantees $250,000 per savings account. Morgan Stanley analysts estimated a deposit outflow of nearly half of total deposits according to a March 20 note. The bank had a high level of uninsured deposits amounting to 68% of assets.

 


US FUTURES RISE AS BANKS RALLY; TREASURIES DIP: MARKETS WRAP

Bloomberg - Robert Brand (2023-03-27)

US equity futures edged higher as the prospect of further support from US authorities eased some concerns over the troubled regional banking sector.


RBC SNARES GLUSKIN WEALTH MANAGERS AS ONEX ABANDONS STRATEGY

Bloomberg - Layan Odeh (2023-03-27)

Onex Corp. has walked away from a strategy of expanding in private wealth as it refocuses on its core business of managing private equity and credit funds. 


SAUDI NATIONAL BANK CHAIR RESIGNS AFTER CREDIT SUISSE REMARK

Gulfnews (2023-03-27)

Ammar Al Khudairy, the chairman of Credit Suisse Group AG’s largest shareholder, has resigned just days after his comments helped trigger a slump in the stock and bonds that prompted the Swiss government to step in and arrange its takeover.


CRISIS LESSONS FOR U.S. FEDERAL RESERVE AS POWELL WAITS TO FIND OUT WHY BANKS COLLAPSED

CBC - Don Pittis (2023-03-24)

"Events in the banking system over the past two weeks are likely to result in tighter credit conditions for households and businesses, which would in turn affect economic outcomes," Powell said. "It is too soon to determine the extent of these effects and therefore too soon to tell how monetary policy should respond."


UBS SHARES HIT AS EUROPEAN BANKS SLIDE

Reuters - Sruthi Shankar and Amanda Cooper (2023-03-24)

The index of top European banks fell 2.2% in early trade with shares in Swiss bank UBS Group AG down 6.4%.


ASIA BANK AT1S ALSO HAVE SWISS WIPEOUT CLAUSE, REPORT SAYS

Yahoo Finance (2023-03-24)

A report by research firm CreditSights said the existing terms and conditions of regional lenders’ AT1 notes “permit the regulators to impose losses on these instruments, similar to what FINMA imposed on the AT1s of Credit Suisse.” Still, Pramod Shenoi, co-head of Asia Pacific research, expects officials in the region only to invoke the clause if a lender lacks capital.


SWISS FRANC GRAPPLES WITH SAFE-HAVEN IDENTITY CRISIS AFTER CREDIT SUISSE

Yahoo Finance - Samuel Indyk (2023-03-24)

The Swissie, often used as a refuge in times of market stress or volatility, lost 0.9% against the dollar in the week after the Swiss finance department said regulators were closely monitoring the situation at Credit Suisse on March 13.


DO KWON CHARGED WITH FRAUD BY US PROSECUTORS IN NEW YORK

Yahoo Finance (2023-03-24)

Terraform Labs co-founder Do Kwon was charged by US prosecutors with orchestrating a yearslong cryptocurrency fraud that wiped out at least $40 billion in market value.


BRACE YOURSELF, THE FED IS SIGNALLING THAT A THREE-QUARTER RECESSION WILL START IN TWO WEEKS

FP - David Rosenberg (2023-03-24)

Stocks whipsawed in the aftermath of the United States Federal Reserve’s decision on March 22 to raise interest rates, but ultimately succumbed to selling pressure. Beyond the fact that the Fed was willing to move ahead with tightening in the face of elevated financial risks, the stock market was also hit by comments by U.S. Treasury Secretary Janet Yellen, who said the government isn’t considering “blanket” deposit insurance to stabilize the banking system.
Against this backdrop, we think the risk/reward profile for the broader market is unfavourable. Our preference is to focus on low-volatility stocks, companies with strong balance sheets and limited earnings cyclicality, which are themes we believe will serve investors well in the current environment.


JPMORGAN, CITI, BOFA TELL STAFF NOT TO POACH CLIENTS FROM STRESSED BANKS

Reuters - Lananh Nguyen and Saeed Azhar (2023-03-24)

As a series of U.S. lenders were besieged by customers yanking out their money this month, banking behemoths including JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N) and Bank of America Corp. (BAC.N) warned employees: Do not make it worse.


EMIRATES AIRLINE SAYS 'SUBSTANTIAL' TICKET REVENUE TRAPPED IN NIGERIA

Reuters - Ghaida Ghantous (2023-03-24)

Nigeria is withholding $743 million in revenue earned by international carriers operating in the country, the highest amount owed by any nation, global airline industry association IATA said last week.

 


BANKS ARE STILL DRAWING ON THE FED FOR $164 BILLION OF EMERGENCY CASH

Bloomberg - Craig Torres, Alex Harris (2023-03-24)

Banks reduced their borrowings only slightly from two Federal Reserve backstop facilities in the most recent week, a sign that institutions are taking advantage of the central bank’s liquidity in the wake of turmoil.


INTERACTIVE’S SOSNICK SAYS BANK TURMOIL ISN’T LIKE 2008, BUT IT RHYMES

Bloomberg - VILDANA HAJRIC (2023-03-24)

When Steve Sosnick recalls 2008 and tries to make parallels to the current turmoil in the banking sector, one memory sticks out: riding the elevator with Thomas Peterffy, founder of Interactive Brokers, who offhandedly asked him “what’s new?”


NEW LOYALTY PROGRAM LAUNCHED - SCENE+ MAKES ITS QUEBEC DEBUT AT IGA, RACHELLE BéRY, LES MARCHéS TRADITION AND ONLINE AT VOILà PAR IGA

Cision (2023-03-24)

Today, Empire (Sobeys Inc.) is announcing the launch of Scene+ at its stores throughout Quebec, marking the fourth phase of the program's rollout in CanadaScene+ is transitioning from an entertainment-focused loyalty program to a full lifestyle loyalty program and is now available at all IGA, Les Marchés Tradition and Rachelle Béry stores and on Voilà's online platform.


NEW BRUNSWICK INTRODUCES TITLE PROTECTION LEGISLATION

Investment Executive (2023-03-24)

Bill 29 includes potential administrative penalties for using a restricted title without a required credential or otherwise contravening the act — $10,000 for individuals and $25,000 for non-individuals.


CREDIT UNION TECHNOLOGY FORUM

Credit Union Tech Forum (2023-03-24)

Jody Wilson Raybould and Darrel Bricker among those speaking.


FED RAISES RATE DESPITE TURMOIL IN FINANCIAL SYSTEM

G&M - Mark Rendell (2023-03-23)

The U.S. Federal Reserve pressed ahead with its ninth consecutive interest rate hike, but signalled that it may be near the end of its monetary policy tightening campaign as it grapples with the most serious banking crisis since 2008.


UNLIKE THE U.S., CANADA HASN’T HAD A MAJOR BANK FAIL IN A CENTURY. HISTORY EXPLAINS WHY

G&M - Tim Shufelt (2023-03-23)

On a Saturday morning in 1923 in Toronto’s financial district, an employee appeared behind the locked doors of a bank headquarters with a sign that read: “Bank Closed. Payment Suspended.” It was nailed to the stately building’s mahogany doors, and with that, a Canadian financial institution was dead.


SILICON VALLEY BANK'S FORMER PARENT COMPANY SAYS U.S. REGULATOR IS CUTTING IT OFF FROM CASH

CBC (2023-03-23)

The company, which has about $2 billion US in cash at its former subsidiary, said in court filings that the FDIC receiver had blocked a $250 million wire transfer, removed $19 million from an SVB Financial bank account, and attempted to claw back payments to SVB Financial's bankruptcy attorneys and financial advisers, among other "improper actions."


BANKS ARE IN TURMOIL. HERE'S HOW CANADIANS MIGHT BE AFFECTED

CBC - Jenna Benchetrit (2023-03-23)

"The issues that caused the 2008 crisis — massive derivatives use, lots and lots of exposure to the U.S. housing market — those are not present this time around."


CREDIT SUISSE DEAL HALTED CRISIS, SWISS CENTRAL BANK SAYS

Yahoo Finance (2023-03-23)

To support the deal announced late Sunday, the Swiss central bank has said it is providing a loan of up to 100 billion francs ($109 billion) and that the government is providing another 100 billion francs of support as a backstop if needed.


REMOTE-WORK TREND CREATES MORTGAGE-BACKED SECURITIES DEFAULT RISK, MOODY'S WARNS

FP - Shantaé Campbell (2023-03-23)

“Lenders’ anticipation of lower office revenue is creating refinancing difficulty for office loans with low debt yields and loans with significant lease maturities in the next 36 months,” the March 20 report said.


CITIGROUP CEO DECLARES 'THIS IS NOT A CREDIT CRISIS' AFTER U.S. BANK FAILURES

Reuters - Lananh Nguyen and Saeed Azhar (2023-03-23)

Citi, the fourth-largest U.S. lender, was one of 11 major banks that threw a lifeline to First Republic last week in an effort to help it buy time for restructuring.

 


EUROPEAN BANK SHARES FALL AS CRISIS LEAVES MARK

Reuters (2023-03-23)

The turmoil that began in the United States spread quickly around the globe, ensnaring one of Europe's biggest banking names in 167-year-old Credit Suisse AG (CSGN.S), which was forced into a shotgun marriage with Swiss peer UBS Group (UBSG.S) to avert a wider crisis.

 


CITI CEO FRASER WARNS MOBILE MONEY IS ‘GAME CHANGER’ FOR BANK RUNS

Bloomberg - Jennifer Surane (2023-03-23)

Citigroup Inc. Chief Executive Officer Jane Fraser said mobile apps and consumers’ ability to move millions of dollars with a few clicks of a button mark a sea change for how bankers manage and regulators respond to the risk of bank runs. 


EACH FINANCIAL RESCUE BUILDS UPON THE PAST

Bloomberg - Sonali Basak (2023-03-23)

Detailed report on JP Morgans role in 1907 crash versus today. No long version so click the link to read the article.


FINANCE YOUTUBERS WHO PROMOTED FTX HAVE NOW BEEN HANDED A $1BILLION LAWSUIT

Yahoo Finance - Eleanor Pringle (2023-03-23)

A handful of YouTubers famed for their personal finance expertise are being chased hard for more than $1 billion by victims who lost their fortunes in Sam Bankman-Fried's FTX.


SWITZERLAND’S EMERGENCY RESCUE OF CREDIT SUISSE COULD COST $13,500 FOR EACH AND EVERY SWISS PERSON

Fortune - Bryce Baschuk, Bastian Benrath (2023-03-23)

To backstop the emergency sale of Credit Suisse Group AG to its Zurich rival UBS Group AG, the Swiss government pledged to make as much as 109 billion francs available — a hefty burden for the country of 8.7 million people. 


CENTRAL BANKS SEE FUTURE FOR GLOBAL INSTANT PAYMENTS VIA MOBILE PHONES

Finextra (2023-03-23)

Looking ahead, the BIS and the five central banks envisage that Nexus could eventually be implemented globally. To achieve this, they plan to establish a Global Advisory Panel of central banks and payment system operators to advise on the project's development beyond the Southeast Asian region. The Bank of Italy and the European Central Bank will be invited to join this panel.


AI WORKING MAGIC ON FINANCIAL SERVICES FIRMS

Forbes - Chris Perry (2023-03-23)

It’s no surprise that an impressive 71% of the 500 senior executives in financial services participating in the study say artificial intelligence has significantly changed the way their companies work.


CRYPTOUK CALLS ON GOVERNMENT TO INTERVENE OVER BANK RESTRICTIONS

Finextra (2023-03-22)

In recent months, NatWest, HSBC, Nationwide Building Society and Santander have all placed restrictions on customers buying cryptocurrency, citing regulatory concerns and the risk of scams.


YELLEN SAYS U.S. BANKING SITUATION IS ‘STABILIZING’ AFTER RECENT REGIONAL FAILURES

G&M (2023-03-22)

Treasury Secretary Janet Yellen projected calm on Tuesday after recent regional bank collapses but told a gathering of bankers that additional rescue arrangements “could be warranted” if any new failures at smaller institutions jeopardize financial stability.


RBC TELLS EMPLOYEES TO RETURN TO THE OFFICE THREE OR FOUR DAYS A WEEK

G&M (2023-03-22)

RBC is the first of Canada’s big banks to mandate more rigorous return-to-office requirements. As of the beginning of March, Toronto-Dominion Bank employees who are designated as hybrid workers are expected to be in the office at least two days a week, according to an e-mailed statement from the bank.


MARK WISEMAN STEPS DOWN AS CHAIR OF AIMCO BOARD AFTER THREE-YEAR TERM

G&M (2023-03-22)

The chair of Alberta Investment Management Corp.’s board of directors, Mark Wiseman, is stepping down after a three-year term.


WHY AIR MILES NEEDS MORE THAN JUST A NEW OWNER TO APPEAL TO CUSTOMERS

CBC - Anis Hedari (2023-03-22)

The problem, according to some rewards industry watchers, is that it doesn't have lucrative-enough business partners actually offering Air Miles to make the program worth it for those millions of account holders.


MACRON TO DEFEND FRENCH PENSION PLAN ON NATIONAL TELEVISION

Yahoo Finance (2023-03-22)

Unions have called for new nationwide protests and strikes on Thursday to demand that the government simply withdraw the retirement bill. High-speed and regional trains, Paris metro and other public transportation in major cities were expected to be disrupted.


'THEY NEED EACH OTHER': BANKING CRISIS AMPS UP UNCERTAINTY AROUND TD'S FIRST HORIZON DEAL

FP - Stephanie Hughes (2023-03-22)

Toronto-Dominion Bank’s proposed US$13.4 billion acquisition of Tennessee-based First Horizon Corp. was supposed to be the lynchpin of its U.S. expansion strategy, a move that would make it the sixth-largest bank there with US$614 billion in assets and allow it to keep ahead of Canadian rivals who have been building their own operations south of the border.
Now regulatory hurdles and the aftermath of the collapse of Silicon Valley Bank, which has sent the values of U.S. regional banks tumbling, mean the deal is unlikely to be completed on its original terms, and may fall apart altogether.


XI AND PUTIN PLEDGE TO SHAPE NEW WORLD ORDER, NO PEACE IN SIGHT FOR UKRAINE

Reuters (2023-03-22)

China's President Xi Jinping and Russia's President Vladimir Putin set their sights on shaping a new world order as the Chinese leader left Moscow on Wednesday, having made no direct support for Putin's war in Ukraine during his two-day visit.


MORE BANKS WILL FAIL OVER NEXT 2 YEARS, SAYS MAN GROUP CEO

Reuters (2023-03-22)

The banking turmoil sparked by the collapse of Silicon Valley Bank is not yet over, and a significant number of banks will fail within two years, the CEO of hedge fund Man Group (EMG.L), Luke Ellis, told a Bloomberg conference in London on Wednesday.


UBS BUYS BACK NEARLY $3 BILLION IN BONDS ISSUED UNDER A WEEK AGO

Reuters (2023-03-22)

UBS Group (UBSG.S) said on Wednesday it would buy back 2.75 billion euros ($2.96 billion) worth of debt it issued less than week ago, seeking to boost confidence among investors rattled by its $3 billion rescue of rival Credit Suisse at the weekend.



JPMORGAN SAYS TREASURIES COPING AMID WORST LIQUIDITY SINCE 2020

Bloomberg - Garfield Reynolds (2023-03-22)

The Federal Reserve can look past low liquidity in the Treasuries market and continue with its rate hikes, according to strategists at JPMorgan Chase & Co. 


YELLEN SAYS US WILL INTERVENE IF NEEDED TO PROTECT SMALLER BANKS

Bloomberg (2023-03-22)

Treasury Secretary Janet Yellen said on Tuesday the US government could repeat the drastic actions it took recently to protect bank depositors if smaller lenders are threatened.


“BANK RUN-TYPE SCENARIO” AT LIFECOS HIGHLY UNLIKELY: DBRS

Investment Executive (2023-03-22)

While life insurance clients may withdraw early from some policies, such as guaranteed investment contracts and deferred annuities, Canadian life insurers are at low risk of suffering mass policy withdrawals, DBRS Morningstar said in a new report.


SWITZERLAND’S NATIONAL PRIDE DEALT HEAVY BLOW BY THE MERGER OF ITS BANKING TITANS

The Guardian (2023-03-22)

“The zombie is no more, but a monster is being born,” wrote Swiss newspaper Neue Zürcher Zeitung.


CHINA JUST BROKERED A HISTORIC TRUCE BETWEEN SAUDI ARABIA AND IRAN. CAN IT DO UKRAINE NEXT?

Time - Charlie Campbell (2023-03-22)

Friday’s agreement signed in Beijing that reestablished diplomatic relations between Tehran and Riyadh after seven years of bitter rancor has cast China in an unfamiliar role as global truce-broker. It’s a development that signifies President Xi Jinping’s new willingness to leverage his economic clout in third-party negotiations, thereby explicitly rejecting former reformist leader Deng Xiaoping’s noninterventionist mantra, “hide your strengths, bide your time.” Xi appears to have personally played a part brokering the Iran-Saudi deal, visiting the Saudi capital in December and hosting Iran’s president in Beijing last month.


CENTRAL BANKS IN A BIND OVER BURGEONING FINANCIAL CRISIS AND INFLATION

G&M - Mark Rendell (2023-03-21)

For the past year, central banks including the Bank of Canada have fought to get inflation under control with single-minded determination. Over the past week, they’ve added a second task: stopping contagion from spreading through the global financial system after the collapse of Silicon Valley Bank and the emergency takeover of Credit Suisse.


AS LENDERS KEEP GETTING BAILED OUT, A QUESTION OF IDENTITY RISES: WHAT IS A BANK?

G&M - John Hartley (2023-03-21)

Jon Hartley is a PhD student in economics at Stanford University and a research fellow at the Foundation for Research on Equal Opportunity.


THE UBS-CREDIT SUISSE DEAL, VISUALLY EXPLAINED

CBC - Graeme Bruce (2023-03-21)

UBS, Switzerland's largest bank, will buy its beleaguered rival Credit Suisse in the largest deal yet meant to soothe the nerves of global investors, already jittery since the failure of Silicon Valley Bank in February.


CANADIAN BANK FUNDING STABLE DESPITE $57B MARKET CAP LOSS: REPORT

Yahoo Finance (2023-03-21)

He says that while the Big Six banks have lost about 9.2 per cent in market capitalization, they have diversified and stable funding and generally have lower exposure to the fixed-income securities that helped lead to Silicon Valley Bank's downfall.


HONG KONG OVERNIGHT FUNDING COSTS DOUBLE IN SIGN OF CASH SQUEEZE

Yahoo Finance (2023-03-21)

The overnight Hong Kong interbank offered rate, known as Hibor, surged 253 basis points to 4.14% on Tuesday. That’s biggest gain since data compiled by Bloomberg that began in 2006. The one-month gauge increased by 51 basis points, the most since 2008.


SILICON VALLEY BANK SHOOK UP CANADIAN TECH LENDING. WILL THE BIG BANKS FILL THE VOID?

FP - Barbara Shecter, Stephanie Hughes, Meghan Potkins (2023-03-21)

Silicon Valley Bank built a modest loan book totalling just over $435 million in its four years of operating in Canada, but the collapse of the U.S. based technology lender last week has left outsized questions about who will step in to fill the void in venture lending it leaves behind.
In the immediate aftermath, the big banks and the venture unit of the Business Development Bank of Canada (BDC), which is armed with capital to step in where traditional lenders don’t, have been working with firms caught in the lurch.


OSFI REINFORCES CREDITOR HIERARCHY IN WAKE OF CREDIT SUISSE BONDHOLDER CONTROVERSY

FP - Barbara Shecter (2023-03-21)

After the 2008 crisis, many banking regimes including Canada’s adopted “bail-in” mechanisms that included the creation of new kinds of bonds that would convert to equity if a bank ran into trouble. The intent was to avoid a repeat of taxpayer-funded bank bailouts, and the appeal of these new bonds was that they would become the new shares in a strengthened financial institution if the bail-in were triggered.


VANGUARD TO EXIT CHINA FUNDS JV WITH ANT, CLOSE SHANGHAI OFFICE

Reuters - Selena Li (2023-03-21)

U.S. fund giant Vanguard Group is shutting its main Shanghai office and exiting from a joint venture with Ant Group, five sources with knowledge of the matter said, moves that will end its six-year presence in the world's second largest economy.


US OFFICIALS STUDY WAYS TO EXPAND FDIC COVERAGE TO ALL DEPOSITS -BLOOMBERG NEWS

Reuters (2023-03-21)

One legal framework that is being looked at for expanding FDIC insurance would use the Treasury Department's authority to take emergency action and lean on the Exchange Stabilization Fund, the report added.


REGIONAL BANK TURMOIL LEAVES TD’S FIRST HORIZON DEAL UNDER A CLOUD

Bloomberg - Layan Odeh (2023-03-21)

Toronto-Dominion Bank’s top executive said this month the lender is “fully committed” to the $13.4 billion takeover of First Horizon Corp. The market doesn’t buy it.


WHAT’S A MINSKY MOMENT, AND WHY THE WORRIES ABOUT ONE

Bloomberg (2023-03-21)

The mere mention of a “Minsky moment” — a sudden crash of markets and economies that are hooked on debt — is enough to send shudders through policy makers. The theory stems from the work of Hyman Minsky, a US economist who specialized in how excessive borrowing fuels financial instability. Sky-high debt levels around the world, coupled with towering financial market valuations, have kept Minsky’s theory prominent, drawing warnings from the International Monetary Fund and others. US Treasury Secretary Janet Yellen once described his work as “required reading.”


CANADIAN MORTGAGE BORROWING FELL OFF A CLIFF IN 2023

Better Dwelling (2023-03-21)

Canadian mortgage originations were unusually slow as higher rates bite into leverage. The value of new mortgage funds fell 16.1% ($4.0 billion) to $20.7 billion in January. It represents a massive 41.0% (-$26.6 billion) decline when compared to the same month last year. January is normally a relatively boring month, but this is far from a seasonal slowdown typically observed.  


WOMEN MAKE UP ONE-THIRD OF S&P/TSX COMPOSITE BOARD POSITIONS FOR FIRST TIME

Investment Executive (2023-03-21)

The corporate governance company says that when it ended its analysis in January, women held 33.7% of board seats, up from 27.9% in January 2020


CRYPTO ADS IN BELGIUM MUST WARN: 'THE ONLY GUARANTEE IN CRYPTO IS RISK'

Finextra (2023-03-21)

States the FSMA: "Virtual currencies are all the rage at the moment, but they involve considerable risk. There is no legal framework yet governing these products, and they have no underlying assets in the ‘real’ world. They are often subject to wild price fluctuations and are vulnerable to fraud and IT-related risks."


PAYMENTS CANADA AND EBA CLEARING COMPLETE ISO 20022 CUTOVER

Finextra (2023-03-21)

The March go-live date includes a transition period through to November 2025, at which point the legacy MT format will be retired and all banks on the Swift network will be required to comply with the new ISO 20022 standard.


COORDINATED CENTRAL BANK ACTION TO ENHANCE THE PROVISION OF U.S. DOLLAR LIQUIDITY

Federal Reserve (2023-03-21)

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.


CANADA'S HOUSING MARKET SEEN AS 'MAIN CASUALTY' OF LOOMING CREDIT SQUEEZE

Yahoo Finance - Pamela Heaven (2023-03-21)

“The increase in exposure means that, in the event of broader contagion in the U.S., Canadian banks could face more pressure than in the past to rein in domestic lending,” he said.


CANACCORD APPOINTS FORMER ONTARIO FINANCE MINISTER TO BOARD AMID TAKEOVER TUSSLE

Investment Executive - Mark Burgess (2023-03-21)

Phillips, who resigned as Ontario’s long-term care minister last year and didn’t seek re-election in his Ajax riding, joined Canaccord’s board along with Amy Freedman, a partner at Ewing Morris & Co. Investment Partners Ltd. in Toronto.


RELIEF OVER CREDIT SUISSE RESCUE SHORT-LIVED AS BANK SHARES PLUMMET

G&M - Amanda Cooper (2023-03-20)

Banking stocks and bonds plummeted on Monday after UBS Group sealed a state-backed takeover of troubled peer Credit Suisse Group AG, a deal that was orchestrated in an attempt to restore confidence in a battered sector.


BIG MORTGAGES, FEW LISTINGS AND FIERCE COMPETITION: WELCOME TO THE SPRING HOUSING MARKET OF 2023

G&M - Erica Alini (2023-03-20)

Growing concern about the stability of certain corners of the financial sector could also add momentum to the housing market. The recent demise of Silicon Valley Bank (SVB) in the United States, which was linked to the impact of soaring interest rates, has spooked investors. For mortgage borrowers, it means less likelihood of further increases in fixed and variable mortgage rates.


CHINA EVERGRANDE TO DETAIL DEBT RESTRUCTURE PLAN ON WEDNESDAY

G&M - CLARE JIM AND XIE YU (2023-03-20)

Embattled developer China Evergrande Group plans to publish on Wednesday an offshore debt restructuring term sheet agreed with a key offshore bondholder group, the firm’s lawyer told a Hong Kong court.


WHY AIR MILES NEEDS MORE THAN JUST A NEW OWNER TO APPEAL TO CUSTOMERS

CBC - Anis Hedari (2023-03-20)

The lack of a national grocery chain in the Air Miles program contributed to its financial problems, according to Zhang.


WHAT WALL STREET IS SAYING ABOUT UBS BUYING CREDIT SUISSE

Yahoo Finance - Brian Sozzi (2023-03-20)

Vontobel's Andreas Venditti"Thanks to the transaction, a collapse of CS has been avoided. This would have had massive consequences for the Swiss economy, the Swiss financial center, and UBS as well.


GOLD TOPS $2,000 FOR FIRST TIME IN A YEAR AS BANK FEARS CONTINUE

Yahoo Finance - Eddie Spence, Jason Scott and Martin Ritchie (2023-03-20)

Bullion surged 6.5% last week in its biggest advance since early on in the pandemic after several regional American lenders collapsed and concerns grew over Swiss bank’s health. The haven rose as much as 1% on Monday — before paring gains — as European financial stocks fell in the wake of a government-arranged deal to takeover Credit Suisse, which is set to wipe out holders of its riskiest bonds.


BITCOIN THRIVES IN CHAOS, BREAKS ABOVE $28,000 FOR FIRST TIME SINCE JUNE

Yahoo Finance - Carly Wanna (2023-03-20)

Crypto markets have now regained all ground lost since hedge fund Three Arrows Capital and crypto lender Celsius Network collapsed during a tumultuous stretch last summer.


HSBC SLUMPS IN HONG KONG AS AT1 DEBT SELLOFF WEIGHS ON BANKS

Yahoo Finance - Charlotte Yang (2023-03-20)

HSBC Holdings Plc shares closed 6.2% lower, the biggest drop in nearly six months, with its newly issued AT1 bond dropping by more than 5 cents. Standard Chartered Plc ended the session down 7.3%. The broader Hang Seng Index slid 2.7%.


HOW SCANDAL AND MISTRUST ENDED CREDIT SUISSE’S 166-YEAR RUN

Yahoo Finance - Marion Halftermeyer and Myriam Balezou (2023-03-20)

A $54 billion financing backstop from the Swiss central bank — sealed in the dead of night on Thursday to calm jitters — failed to become the lifeline Credit Suisse had hoped. With the country’s banking sector at risk, Swiss authorities stepped in to push UBS to become a reluctant white knight.


BANK SHARES PLUMMET AS CREDIT SUISSE RESCUE FAILS TO QUELL CONTAGION FEARS

Reuters (2023-03-20)

European bank shares slumped, with an index of leading lenders (.SX7P) down 5.8%. German banking giants Deutsche Bank (DBKGn.DE) and Commerzbank dropped 10.9% and 8.5% respectively, while France's BNP Paribas (BNPP.PA) fell 8.2%.
UBS shares fell by as much as 16% in early trade, their biggest one-day fall since 2008, amid concerns among investors about the long-term benefits of the deal and the outlook for banks in Switzerland, a country once seen a paragon of sound banking.


FRENCH INSURER AXA HAS ABOUT $640 MLN EXPOSURE TO CREDIT SUISSE

Reuters (2023-03-20)

French insurer AXA (AXAF.PA) had a "limited exposure" of about 0.6 billion euros ($639.5 million) to Swiss bank Credit Suisse (CSGN.S), it said on Monday.


RISKY CREDIT SUISSE BOND WIPEOUT UPENDS $275 BILLION MARKET

Bloomberg - Neil Callanan, Tasos Vossos and Priscila Azevedo Rocha (2023-03-20)

Among the biggest losers in the shotgun sale of Credit Suisse Group AG are investors in the firm’s riskiest bonds, known as AT1s, worth $17 billion. 


HOW FINANCIAL ADVISORS DEALT WITH THE SVB COLLAPSE

Investment Executive - Michelle Schriver (2023-03-20)

Compared to 2008, Brad Brain, portfolio manager with Brad Brain Financial Planning and Aligned Capital Partners Inc. in Fort St. John, B.C., said he doesn’t perceive the current situation as “an exceptional risk,” though that can only be known in the long run.


CANADIAN TIRE TOPS LIST OF MOST RESPECTED RETAILER: SURVEY

MSN - Kevin Connor (2023-03-20)

Canadian Tire, followed by Costco, and Staples, rank as Canada’s most respected retail stores, according to a survey by Maru Public Opinion.


BITCOIN AT $1 MILLION IN 90 DAYS AND DOLLAR DESTROYED—HUGE CRYPTO PRICE PREDICTION BET FUELED BY BANK CRISIS AND HYPERINFLATION

Forbes (2023-03-20)

The bitcoin price has topped $27,000 per bitcoin, up over 30% since this time last week, hitting a level it hasn't seen since June last year. The bitcoin boom has also sent the ethereum price and other major cryptocurrencies sharply higher. Now, after JPMorgan analysts said the Fed's new bank backstop program could inject up to $2 trillion into the financial system, technology investor and former CoinbaseCOIN +0.3% chief tech officer Balaji Srinivasan has warned the latest banking crisis could spark hyperinflation in the U.S.—and advised people to "buy bitcoin now and get your coins off exchanges."


'WE'RE SPENDING MORE FOR LESS REWARD!': SHOPPERS' FURY AS TESCO SLASHES VALUE OF CLUBCARD POINTS AGAIN ON DEALS WITH SUPERMARKET'S PARTNERS FOR THE SECOND TIME IN FIVE YEARS

This is Money - Arthur Parashar (2023-03-20)

The scheme originally saw shoppers able to boost their vouchers' value by 2x or even 4x - but this was reduced to a standard 3x in 2018 which also sparked a revolt among shoppers at the time. Now, as of June 14, Clubcard vouchers will only be worth 2x their value if exchanged at any of Tesco's Reward Partners.


SILICON VALLEY BANK COLLAPSE HAS LED TO 'APOCALYPTIC RHETORIC' IN MARKETS

Reuters - Paul Krugman (2023-03-18)

The collapse and rescue of Silicon Valley Bank has led to some bleak rhetoric in markets, but almost none of the most commonly voiced fears are correct, according to Nobel economist Paul Krugman.


PULLING THE POWER OF ENTERPRISE INNOVATION & LOYALTY PROGRAMS WITH TRIANGLE REWARDS

Branch.IO - Podcast (2023-03-18)

Interview with Greg Shelly, VP Enterprise Digital Marketing CDN Tire: Without a mobile-first approach, you cannot build a close relationship with your customer on a web browser. Being on someone’s phone means you have created value in their lives, and you have to make efforts to stay installed on their phones.


CANADIAN TIRE LAUNCHES NEW FEE-BASED TIER TO TRIANGLE LOYALTY PROGRAM FOR $89 A YEAR

CBC (2023-03-18)

Members who pay for Triangle Select status will be able to earn CT Money faster through "stackable, bonus rewards" on eligible purchases at its stores, including Canadian Tire, Mark's, Sport Chek, Sport Experts and Party City, the company said.


FIRST REPUBLIC GETTING $30-BILLION INFUSION FROM U.S. BANKING GIANTS TO AVERT CRISIS

G&M - Tim Kiladze (2023-03-17)

The United States’ largest financial institutions have agreed to deposit US$30-billion in First Republic Bank, an unconventional private-sector rescue designed to shore up confidence in the financial system and contain an emerging crisis.


THE REAL HIT TO CANADIAN HOUSE PRICES IS DEEPER THAN IT SEEMS

G&M - Jason Kirby (2023-03-17)

Inflation adjustments are not something homeowners typically factor into their view of real estate prices. “People don’t think in real terms when they talk about how much their house price has changed,” said Ben Rabidoux, founder of market research firm North Cove Advisors Inc.


TD CEO BHARAT MASRANI RECEIVES LARGEST RAISE OF CANADA’S BIG FIVE BANKS

G&M - Stefanie Marotta (2023-03-17)

Toronto-Dominion Bank’s chief executive officer, Bharat Masrani, received the biggest pay bump of the most senior executives at Canada’s five largest banks.

Mr. Masrani’s total compensation jumped 11.7 per cent in the past fiscal year to $15.08-million, making him the highest-paid bank CEO after Royal Bank of Canada’s David McKay. Canada’s second-largest lender, TD reported pay for its top executives in its annual proxy circular released Tuesday afternoon, and was the last of the big banks to disclose compensation for the year ended Oct. 31, 2022.

TD’s financial performance target for fiscal 2022 was to earn $13.49-billion in net income after tax (NIAT), less than the $14.65-billion than it earned in the prior year. The bank earned $15.43-billion in NIAT in 2022, beating its target by 14 per cent – the most significant metric that drove Mr. Masrani’s compensation increase.

He received a bonus of $2.69-million, up slightly from $2.37-million in the prior year, and stock and option awards valued at $10.82-million, up from $9.56-million.

In addition to his total compensation, Mr. Masrani was also paid for his role as a board member of Charles Schwab Corp. 

SCHW-N -2.80%decrease   , which he holds as part of TD’s investment in the company. For the year ending Oct. 31, he received a retainer of US$119,167, which he took as deferred, restricted stock units; a stock option award of US$86,000; and a restricted-stock award of US$129,000.


EUROPE'S CENTRAL BANK HIKES INTEREST RATES BY 50 BASIS POINTS DESPITE BANK CHAOS SOCIAL SHARING

CBC (2023-03-17)

The ECB hiked rates by half a percentage point Thursday, underlining its determination to fight high inflation of 8.5 per cent. In a statement, the bank called the banking sector in the 20 countries using the euro currency "resilient," with strong finances.


HOME SALES FELL 40% IN FEBRUARY COMPARED TO A YEAR AGO, SAYS CREA REPORT

CBC - Jenna Benchetrit (2023-03-17)

The average price of a Canadian home sold in February was $662,437, an 18.9 per cent decrease from the same period last year — though about $50,000 more than in January, thanks to sales gains in major markets Toronto and Vancouver.


SOBEYS’ CYBERSECURITY BREACH RESULTS IN $54M HIT TO EARNINGS IN Q3

Yahoo Finance - Alicja Siekierska (2023-03-17)

Sobeys was hit by what it first called an “IT systems issue” on Nov. 4, leaving customers unable to fill prescriptions for four days, with many of the grocer’s systems experiencing technical difficulties.


FUTURES WAVER AS BANKING CRISIS WORRIES PERSIST

Yahoo Finance (2023-03-17)

While the focus remains on the health of the banking sector, investors also looked ahead to U.S. central bank's policy meeting next week to gauge how it will tame inflation amid a banking crisis.


FIRST REPUBLIC SHARES RESUME SLIDE AS INVESTORS ASSESS AID

Yahoo Finance (2023-03-17)

First Republic shares resumed their slide post-market, after it disclosed that its borrowings from the US Federal Reserve varied from $20 billion to $109 billion from March 10 to March 15.


GLOBAL TURMOIL MAKES AUSTRALIAN BANKS' REFINANCING MOUNTAIN A HARDER CLIMB

Yahoo Finance - Lewis Jackson and Scott Murdoch (2023-03-17)

Australia's biggest banks, Westpac , ANZ Group Holdings , Commonwealth Bank and National Australia Bank are refinancing roughly A$300 billion worth of funding in fiscal 2023 and 2024, the largest two-year tally in nearly a decade, according to Macquarie research.


BANKS TRADED AT LOW MULTIPLES WITH A HOWLING WIND AT THEIR BACKS, SO WHAT HAPPENS NOW?

FP - Tom Bradley (2023-03-17)

If I told you about a company that is highly profitable, has a strong balance sheet, has grown steadily by expanding into new business areas, pays a healthy dividend and dominates its market with a few other firms, what would you think its price-to-earnings multiple (P/E) should be? I suspect you’d say it should trade at a premium to the overall market, perhaps a P/E in the high teens or low 20s.


ECB MEETS OVER BANKING STRESS AS US RESCUE EASES IMMEDIATE FEARS

Reuters - Balazs Koranyi, Pete Schroeder (2023-03-17)

"The Supervisory Board is meeting to exchange views and to provide members with an update on recent developments in the banking sector," an ECB spokesperson told Reuters.


CHINA CUTS BANKS' RESERVE RATIO FOR FIRST TIME IN 2023 TO SUPPORT RECOVERY

Reuters - Ellen Zhang (2023-03-17)

China's central bank said on Friday it would cut the amount of cash that banks must hold as reserves for the first time this year to help keep liquidity ample and support a nascent economic recovery.


VCS ASK TRUDEAU FOR LIFELINE TO REPLACE SVB CREDIT IN CANADA

Bloomberg - Estaban Duarte (2023-03-17)

A group representing Canada’s venture capital sector is asking Prime Minister Justin Trudeau’s government to provide emergency financing to help startups affected by the collapse of Silicon Valley Bank.  


BLACKSTONE’S REAL ESTATE SHOPPING SPREE IS NOW A MORTGAGE DEFAULT CRISIS

Better Dwelling (2023-03-17)

Blackstone’s uber popular and massive $71 billion BREIT might have a liquidity issue. The firm halted redemptions for a fourth month, denying investor withdrawal requests. In January, investors tried to pull 25% of the trust’s value, with the equivalent of 2% fulfilled. February saw investors attempt to pull $3.9 billion, with just 35% filled.


EXPERTS, BANKS IN U.S. LOOK FOR IDEAS TO STOP NEXT BANK FAILURE

Investment Executive - Ken Sweet (2023-03-17)

Congress decided to provide relief from the Dodd-Frank legislation. Among other things, it ditched the $50 billion asset threshold for the most stringent oversight, pushing it up to $250 billion. Many large lenders, including Silicon Valley Bank, were thereby freed from the tightest regulatory scrutiny.


BITCOIN PRICE PREDICTION AS HUGE $75 BILLION TRADING VOLUME FLOODS IN – ARE WHALES BUYING?

Cryptonews (2023-03-17)

Bitcoin's price has increased by more than 5% in the last 24 hours and is currently trading above $25,600. This surge, along with other cryptocurrencies, has pushed the total crypto market cap above the $1 trillion mark, which is making investors more confident. 


ROBINHOOD USERS SAY THE TRADING APP WON’T CASH IN THEIR PROFITABLE BETS AGAINST SILICON VALLEY BANK

Forbes (2023-03-17)

Unlike the great meme stock rally of 2021, this brouhaha revolves around put options and how users of the broker’s app aren’t able to cash in on the collapse of Silicon Valley Bank and Signature Bank even as their bets are in the money.


SAUDI BNPL STARTUP SECURES GOLDMAN SACHS FUNDING

Finextra (2023-03-17)

The €150m also brings Tamara's funding to $366 million since its launch in September 2020. 


STRIPE HALVES VALUATION ON $6.5 BILLION DOWNROUND

Finextra (2023-03-17)

"Stripe does not need this capital to run its business," the company emphasised. Rather the funds raised will be used to provide liquidity to current and former employees and address tax obligations related to equity awards.


WALMART INVESTS $200M IN INDIAN FINTECH PHONEPE

Finextra (2023-03-17)

The investment leaves PhonePe with a market valuation of $12 billion as it looks to break the $1 billion mark in its fundrasing efforts


LONG TERM WEALTH, FARM LIQUIDITY & SUCCESSION PLANNING

Buzzsprout (2023-03-17)

Succession planning is a lengthly process hampered by procrastination.


SILICON VALLEY BANK AND THE FAILURE OF FRACTIONAL RESERVE BANKING

MisesInstitute - J.R. Macleod (2023-03-17)

In modern banking there is little separation between warehouse and investment banking. The downside of investment banking is a potential loss of money since no investment can be a sure bet. The upside is the potential for a good return on money, the reward of taking on a degree of risk. In warehouse banking, such as personal or business checking accounts, the customer is not expecting any loss due to actions taken by the bank. The service rendered here is not expert investment advice; rather it is secure storage of funds and seamless payment transfer. The customer expects all of his money to be available to him at any time.


HOW EASY MONEY KILLED SILICON VALLEY BANK

MisesInstitute - Daniel Lacalle (2023-03-17)

The incredible growth and success of SVB could not have happened without negative rates, ultra-loose monetary policy, and the tech bubble that burst in 2022. Furthermore, the bank’s liquidity event could not have happened without the regulatory and monetary policy incentives to accumulate sovereign debt and mortgage-backed securities (MBS).


BANKMAN-FRIED'S BILLIONS MIRROR THE OVERSIGHT GAPS TORCHING THE BANKING SECTOR

Pymnts (2023-03-17)

In the latest wrinkle, and as reported here, amid the continued exploration of what went wrong at now-defunct FTX, it's been revealed that $3.2 billion was transferred to the company's founders and that $2.2 billion went to SBF. Those funds came from FTX's sister company, the hedge fund Alameda Research, and the transactions were billed as "payments and loans." The recent announcement of those transfers by the new management team that has been following the money is, we contend, the latest example of risk concentrated within a firm. In short, it appears that appropriate oversight of accounts was not in place. 


COST-OF-LIVING CRISIS IN UK BOOSTS BNPL USAGE

Payments Journal - Craig Lancaster (2023-03-17)

As reported by This Is Money, more than a third of workers in the UK have used the loans. The number—38%—is based on a survey of more than 3,000 workers by professional services firm Barnett Waddingham. Another 15% of those surveyed said they plan to use BNPL in the future.


$25TRN WIPED OFF GLOBAL STOCK MARKETS IN 2022

Finextra (2023-03-17)

The report also shows that volumes went up last year to 48.32 billion, reaching their highest levels for six years, however the number of IPOs and the capital raised both fell sharply by 50% and 65% repsectively. 


JUDGE UPHOLDS $5.6BN INTERCHANGE SETTLEMENT

Finextra (2023-03-17)

Then in 2019, a different judge approved the new $5.6 billion settlement which has now been upheld.


FOUR IMPORTANT OBSERVATIONS ABOUT BANKS AT THIS TIME OF CRISIS

G&M (2023-03-16)

RB Advisors, founded by former Merrill Lynch chief quantitative strategist Richard Bernstein, correctly predicted the current market upheaval in last year’s The biggest risk to portfolios today. In a new report this week, RB Advisors deputy chief investment officer Dan Suzuki provided further important context with Some thoughts on the banks by providing four important observations about ongoing volatility in the sector.


SWISS CENTRAL BANK THROWS FINANCIAL LIFELINE TO CREDIT SUISSE AFTER SHARES PUMMELLED

G&M - NOELE ILLIEN, JOHN REVILL AND TOM SIMS (2023-03-16)

Swiss regulators pledged a liquidity lifeline of $54 billion to Credit Suisse CS-N in an unprecedented move by a central bank after the flagship Swiss lender’s shares tumbled as much as 30% on Wednesday.


BLACKROCK’S LARRY FINK SAYS IT’S NOT HIS ROLE TO DRIVE CLIMATE AGENDA

G&M (2023-03-16)

The chief executive officer of the world’s biggest asset manager remains certain that climate change presents a major investment risk, but contends it is not his company’s role to drive the agenda for how society should deal with it.


CALLS MOUNT TO RAISE DEPOSIT INSURANCE LIMIT IN CANADA IN WAKE OF SVB CRISIS

Yahoo Finance - Naimul Karim (2023-03-16)

If the CIDC will insure $500,000 spread into five different accounts, why not ensure the entire amount if held in one account?,” he said.


CMHC SAYS ANNUAL RATE OF HOUSING STARTS CLIMBED 13 PER CENT IN FEBRUARY

Yahoo Finance (2023-03-16)

The annual rate of multi-unit urban starts increased 18 per cent to 173,745 for the month, while the pace of starts for single-detached urban homes rose eight per cent to 48,918 units.


COUCHE-TARD TO BUY TOTALENERGIES RETAIL ASSETS FOR $3.3 BILLION

Yahoo Finance - Thomas Mulier (2023-03-16)

The Canadian convenience-store operator said Thursday it will buy all of the French oil company’s retail assets in Germany and the Netherlands as well as a 60% stake in businesses in Belgium and the Netherlands.


BLACKROCK'S LARRY FINK WARNS 'MORE SEIZURES AND SHUTDOWNS COMING' IN WAKE OF SVB FAILURE

FP (2023-03-16)

BlackRock Inc.'s chief executive Larry Fink warned in his annual investor letter about the potential for ongoing trouble in the U.S. banking system as a consequence of years of "easy money." PHOTO BY SHANNON STAPLETON/REUTERS


THE REGULATORY BLUNDER THAT GAVE US THE SILICON VALLEY BANK DISASTER

Bloomberg - Tracy Alloway and Joe Weisenthal (2023-03-16)

Whenever a major financial institution collapses and needs a bailout, it's easy to say, "Where were the regulators?" But that's only a useful question if you can pinpoint the specific regulatory choices that led to any particular situation. So what caused Silicon Valley Bank to implode? On this episode of the podcast, we speak with Columbia Law School professor Lev Menand, who discusses the defanging of bank supervisors in the run-up to this fiasco. With proper oversight, someone might have caught and put a stop to the unique set of risks the bank was taking. But without proper oversight, they were encouraged to go for all-out growth, regardless of the ultimate social cost. We also discuss legislative changes over time that led to this buildup of risk.


CANADIAN HOME SALES DROP 40% IN FEBRUARY COMPARED WITH YEAR AGO

Investment Executive (2023-03-16)

Compared with January, CREA said national home sales rose 2.3% in February, powered by gains in Toronto and Vancouver, while the number of newly listed properties dropped 7.9% month over month.


THANKS TO FOREIGN ASSETS, PENSIONS GAINED IN Q3

Investment Executive - James Langton (2023-03-16)

StatsCan also reported that pension fund revenues dropped by 20.5% in the third quarter, “mainly because of net realized losses on fixed income investments and financial derivatives.”


MARK CARNEY’S CLIMATE PROGRAMS AT THE BANK OF ENGLAND TO BE DEFUNDED

TrueNorth - Ellen Milligan and Philip Aldrick (2023-03-16)

Climate programs will slip lower on the central bank’s agenda so officials can focus more on the core operations such as financial stability, markets and a digital currency, according to a person with knowledge of the situation who asked not to be named. The BOE’s climate work currently focuses on building ESG disclosure guidelines, preparing insurers for risks from rising global temperatures and getting banks to carbon-test their balance


NEW TOOLS BRING NEW INSIGHTS TO AG LENDING

ABA Journal - Jim O'Brien (2023-03-16)

Banks and farmers are welcoming tools that change the arc of recent history. The 1980s crisis put both banks and farmers in difficult positions. Due to the challenging times, many small farmers were delinquent on loans or went bankrupt. By the end of the decade, an estimated 300,000 farmers defaulted on their loans, and more banks failed in 1985 than in any year since the 1930s. The crisis ushered in an era of tense relationships between banks and small farmers. Fast forward to 2022 and too many farmers now struggle to secure loans and necessary capital to keep their operations afloat.


FCA TAKES AIM AT PAYMENT FIRMS OVER 'UNACCEPTABLE' RISKS

Finextra (2023-03-16)

The letter highlights a number of common failings at payment firms regarding the safeguarding of customers' money in the event of insolvency, including inadequate reconciliation processes and a lack of processes for identifying which funds are 'relevant funds' and must be safeguarded.


INTERAC TO INCREASE REFERENCE NUMBER TO 12 CHARACTERS ON APRIL 16, 2023

Interac (2023-03-16)

Interac will increase length of the payment Reference Number for Interac e-Transfer® from 8 to 12 characters on April 16, 2023. All financial institutions currently offering the Interac e-Transfer service should take steps to verify readiness for the increased length of the Interac Reference Number. 


BDC APPOINTS SÉVRINE LABELLE AS HEAD OF $100 MILLION THRIVE LAB FOR WOMEN ENTREPRENEURS

Betakit - Meagan Simpson (2023-03-16)

Thrive Lab is one of the three pillars of BDC’s Thrive platform, which was allocated half-a-billion dollars last year. The Lab has $100 million of that funding to develop “innovative equity investment models for women-led companies” in order to fill “important gaps in early-stage financing.”


COULD COLLAPSE SIMILAR TO SILICON VALLEY BANK HAPPEN IN CANADA?

CityNews (2023-03-16)

As United States markets and investors continue to respond to the collapse of the Silicon Valley Bank, it has raised questions about the security of Canadian banks. As Nick Westoll reports, experts say it's unlikely it would happen in this country.


SMALL BUSINESS GROUPS PUSH FOR EXTENSION TO REPAY OUTSTANDING CEBA LOANS

G&M - Chris Hannay (2023-03-15)

The original repayment deadline for the interest-free, partially forgivable loans was Dec. 31, 2022; after that, businesses would start paying interest and forfeit the forgivable portion of the loans. Last year, citing the challenges posed by the Omicron variant, Ottawa extended the deadline by 12 months.


CANADIAN MORTGAGE RATES MAY DROP IF THE BOND YIELD PLUNGE STICKS

Better Dwelling (2023-03-15)

Canadian bond yields plunged in response to the US banking liquidity crisis. Yesterday the 5-year GoC bond yield fell 0.38 points to close at 2.898%, following a 0.139 point drop on Friday. The two-day move is the largest in over 25 years for Canada. It matched a similar move in the US, which saw the sharpest drop since the Volcker Recession.


CANADA’S BANKS ARE QUIETLY PICKING UP SILICON VALLEY BANK CLIENTS AS U.S. SALE PROCESS STALLS

G&M - Sean Silcoff (2023-03-15)

Some of Canada’s largest banks are pro-actively and aggressively soliciting Silicon Valley Bank clients amid a standstill in the failed lender’s sale process.


CREDIT SUISSE'S SAUDI BACKER HAPPY WITH TRANSFORMATION PLAN, DOESN'T THINK EXTRA MONEY NEEDED

Yahoo Finance - Rachna Uppal (2023-03-15)

Saudi National Bank's (SNB) chairman Ammar Al Khudairy on Wednesday described Credit Suisse as an opportunistic investment and said the value realisation of that investment will unfold as the Swiss bank proves they are doing the turnaround.


CREDIT SUISSE HITS RECORD LOW, BIGGEST BACKER SAYS CAN'T PUT UP MORE MONEY

Reuters (2023-03-15)

Credit Suisse (CSGN.S) shares slid on Wednesday, dropping by as much as 10.5% to a new record low, as its largest investor said it could not provide the Swiss bank with more financial assistance.


ICELAND LIFTS COUNTERCYCLICAL CAPITAL BANK BUFFER TO 2.5%

Reuters (2023-03-15)

The Icelandic Financial Stability Committee has decided to increase the country's countercyclical buffer rate to 2.5% from 2.0% when measured as a share of the domestic risk base, Iceland's central bank said in a report on Wednesday.


BOFA GETS MORE THAN $15 BILLION IN DEPOSITS AFTER SVB FAILS

Bloomberg - Sridhar Natarajan (2023-03-15)

Bank of America Corp. mopped up more than $15 billion in new deposits in a matter of days, emerging as one of the big winners after the collapse of three smaller banks dented confidence in the safety of regional lenders.


ALECTA CEO CALLS $2 BILLION US BANK FORAY ‘A BIG FAILURE’

Bloomberg - Charles Daly (2023-03-15)

The chief executive officer of Sweden’s biggest pension fund, Alecta, admitted its $2.1 billion bet on three niche US banks tied to Silicon Valley Bank’s collapse was “a big failure”.


TD CEO PAY EDGED CLOSER TO TOP SPOT IN 2022

Investment Executive - Michelle Schriver (2023-03-15)

Three of Canada’s big bank CEOs saw their compensation drop slightly in 2022 amid a challenging market. In a year of higher interest rates, higher costs, increasing loan-loss provisions as well as acquisitions, Toronto-Dominion Bank’s CEO was the outlier, pocketing almost 12% more in total compensation.


ONTARIO TEACHERS’ POST 4% ANNUAL RETURN AS PRIVATE ASSETS PROVIDE BOOST

Investment Executive - Mark Burgess (2023-03-15)

While many portfolios suffered last year as stock and bond markets tumbled, the large pension plan benefited from stronger returns in inflation-resistant assets.


INSURERS ARE OUTSHINING BANKS IN THE CURRENT HIGH-RATE ENVIRONMENT

Investment Executive (2023-03-15)

In Canada, the insurance industry in particular has been a good investment over the last year: “In terms of how insurers look versus the banks, I would say they are looking increasingly attractive,” he said.


ECOSYSTEM RALLIES AROUND CANADIAN TECH

TechNews - Kevin Crowley (2023-03-15)

Canadian tech leaders leapt into action over the weekend to assess the impact of the Silicon Valley Bank collapse on Canadian companies and to offer assistance to founders affected by the demise of the California-based bank.


CAR DEBT IS PILING UP AS MORE AMERICANS OWE THOUSANDS MORE THAN VEHICLES ARE WORTH

Bloomberg - Paige Smith and Michael Sasso (2023-03-15)

Chris Martin knew he needed a bigger car as the birth of his fourth child approached, but he and his wife were already $14,000 underwater on their two vehicles.


VISA AIMS TO LOWER CREDIT SURCHARGE

Payments Dive - Lynne Marek (2023-03-15)

Visa plans to lower the maximum surcharge that retailers and other merchants can impose when consumers use credit cards to pay for a transaction, but its move is likely to face resistance.


MERCHANTS SHOULD NOT WASTE TIME FIGHTING CARD NETWORKS

fsim.ca - Mark Sibthorpe (2023-03-15)

Here we go again: another Visa/Mastercard fee battle just launched from the UK against Visa. This report provides a snapshot of the never ending legal battles since 2012, related aggregated news since 2012, and arguments to support why these legal actions have been a waste of time for US and Canadian merchants. Europe and the UK in contrast have had the upper hand, but this may change for the UK because of Brexit.


SUPERINTENDENT OF FINANCIAL INSTITUTIONS TOOK FURTHER ACTION ON THE SILICON VALLEY BANK CANADIAN BRANCH

OSFI (2023-03-15)

The winding up order under section 10.1 of the Winding-up and Restructuring Act begins an orderly, court-supervised process to restructure the branch as a result of the newly created, full-service U.S. Federal Deposit Insurance Corporation (FDIC) “bridge bank” – Silicon Valley Bridge Bank, N.A. – in a way that best serves the interests of its creditors and will allow operations of the Silicon Valley Bank to continue in Canada.


WE SHOULD BE THANKING SAM BANKMAN-FRIED

The Hill - Thomas P. Vartanian (2023-03-15)

First, hype can never outrun reality. When vast amounts of money chase an asset that becomes over-valued and hyped beyond what the fundamentals suggest, expect a crash. Flares should have initially gone up because in just 13 years, more than $10 trillion flowed into an industry built on financial hope — there simply was no there, there.


THE OPEN BANKING OPPORTUNITY: PROSPERA CREDIT UNION AND CENTRAL 1 DISCUSS THE BENEFITS FOR CANADIAN CREDIT UNIONS

Central 1 (2023-03-15)

Open banking is fast approaching in Canada. Financial institutions across the country are anticipating an update from the Government of Canada this year about its open banking framework. As credit unions gear up for the transition, many have questions regarding the impact of open banking on their organization and how it will affect the financial well-being of their members.


FORMER WELLS FARGO EXECUTIVE AGREES TO PLEAD GUILTY

DOJ (2023-03-15)

<span style="color: rgb(68, 68, 68); font-family: " public="" sans="" web",="" -apple-system,="" blinkmacsystemfont,="" "segoe="" ui",="" roboto,="" helvetica,="" arial,="" sans-serif,="" "apple="" color="" emoji",="" ui="" symbol";="" font-size:="" 16px;"="">In a plea agreement filed today in United States District Court, Carrie L. Tolstedt, 63, of Scottsdale, Arizona, agreed to plead guilty to one count of obstruction of a bank examination. Tolstedt is expected to make her initial court appearance in Los Angeles in the coming weeks, with the parties requesting the court to set a hearing for April 7.


CANADIAN REAL ESTATE PRICES CLIMB FOR THE FIRST TIME IN NEARLY A YEAR

Better Dwelling (2023-03-15)

Canadian real estate prices changed course last month, recording the first increase in nearly a year. The composite benchmark rose 1.0% (+$7,100) to $715,400 in February. Despite the gain, prices remain 15.8% (-$133,900) lower than the same month last year. Home prices haven’t seen an increase in 11 months, which is sure to catch anyone’s eye that notices the shift.


“INFLATION IS OUR FRIEND“ WHEN PARODY BECOMES REALITY

Youtube (2023-03-15)

Crystal ball inflation calculator from 1973.


OSFI TO START DAILY MONITORING OF CANADIAN BANKS’ LIQUIDITY IN WAKE OF SVB FAILURE

G&M - Tim Kiladze (2023-03-14)

last used in the early months of the COVID-19 pandemic, designed to provide an early warning if any signs of stress emerge.


IF YOU’RE RENEWING A MORTGAGE OR BUYING A HOUSE, THE COLLAPSE OF SILICON VALLEY BANK IS THE BEST NEWS IN AGES

G&M - Rob Carrick (2023-03-14)

The cost of fixed-rate mortgages is heavily influenced by interest rates in the bond market. From 3.6 per cent a week ago, the yield on the five-year Government of Canada bond had plunged to roughly 2.9 per cent as of Monday afternoon.

Bond yields chugged higher through February and early March on concerns that sticky inflation would require more central bank interest rates hikes. Now, there’s fear of economic instability that would require lower rates as soon as this spring or summer.


CANADIAN TIRE LAUNCHES FEE-BASED TRIANGLE REWARDS SUBSCRIPTION PROGRAM FOR $89 A YEAR

G&M (2023-03-14)

The retailer says the subscription, which will cost $89 a year plus taxes, is an upgrade to its existing rewards program that will deliver “even more value to customers.”


FORMER SCOTIABANK CEO BRIAN PORTER JOINING FAIRFAX BOARD

G&M - David Milstead (2023-03-14)

Mr. Porter, who stepped down from the Scotia job on Feb. 1 after a decade at the top, will stand for election at Fairfax’s April 20 annual meeting. The 65-year-old spent four decades at the bank. This will be his first postemployment stint as a public company corporate director.


CIRCLE STABLECOIN’S WILD WEEKEND RAISES RISK OF REGULATORY SCRUTINY

Yahoo Finance - Olga Kharif (2023-03-14)

Market overseers, their hands already full with the biggest US bank failure in a decade, were forced over the weekend to contend with a drama playing out in a section of finance that has been trying their patience for months: crypto. That’s where USD Coin’s supposedly immutable bond with the dollar came asunder, when it was revealed about 8% of the reserves backing it were stuck at the collapsed lender.


'SHARK TANK' STAR KEVIN O'LEARY SAYS HE WILL NEVER BUY A BANK STOCK AGAIN AS BIDEN HAS ESSENTIALLY NATIONALIZED THE INDUSTRY POST-SVB

Yahoo Finance - Filip De Mott (2023-03-14)

"You have zero risk and that has consequences," O'Leary said. "There's no such thing as a free lunch. And this is going to be very expensive for shareholders of banks long term. I would never put my money into a bank stock ever again."


IF A CANADIAN BANK FAILS, HOW MUCH DO YOU GET BACK?

FP - Naimul Karim (2023-03-14)

In Canada, bank deposits are guaranteed by the Canada Deposit Insurance Corporation (CDIC), a federal Crown corporation established in 1967. The CDIC currently safeguards about $1 trillion in eligible deposits at more than 80 member institutions, but there’s a catch: the amount depositors can get back is capped at $100,000 per category of deposit, per financial institution.


SVB SHOCKWAVES POUND GLOBAL BANK STOCKS GRIPPED BY CONTAGION FEARS

Reuters (2023-03-14)

Major U.S. banks lost around $90 billion in stock market value on Monday, bringing their loss over the past three trading sessions to nearly $190 billion.


SOME U.S. BANKS FACING STOCK ROUT MAY NEED TO SEEK PARTNERS

Reuters (2023-03-14)

Over the weekend, some private equity firms had studied the possibility of an investment in banks whose shares plummeted such as First Republic Bank (FRC.N) and PacWest Bancorp (PACW.O), according to two industry sources with knowledge of the matter. They did not go ahead as the investors wanted to see what the government would do to alleviate pressure on the banking sector, the sources said.


TOO-BIG-TO-FAIL LENDERS RAKE IN DEPOSITS AFTER THREE BANKS FAIL

Bloomberg - Hannah Levitt, Katherine Doherty and Jennifer Surane (2023-03-14)

After the back-to-back collapse of three smaller banks, their biggest US counterparts are seeing a rush of depositors fearful the crisis will spread.


INDUSTRY CALLS FOR MARKET DATA REGULATION

Investment Executive - James Langton (2023-03-14)

“Without a consolidated, holistic view of market pricing, liquidity and volume, the ability of retail [advisors and investors] to make sound investment decisions is critically impaired,” Cboe’s comment stated. This can result in uninformed investing decisions and poor trade-execution quality, it added.


RABOBANK POSTS NET RESULT OF EUR 2,786 MILLION IN 2022

Rabobank (2023-03-14)

Together with the higher interest rate environment, this culminated in solid financial results, with a net profit of EUR 2,786 million (compared to EUR 3,692 million in 2021).


BINANCE SUSPENDS STERLING DEPOSITS AND WITHDRAWALS AFTER LOSING UK PARTNER

Finextra (2023-03-14)

Th US Justice Department is investigating the firm over suspected money laundering and sanctions violations while the SEC is eying its BUSD stablecoin.


WONDERING WHERE TO GET YOUR POINTS? HOW CANADA’S GROCERY STORE LOYALTY PROGRAMS COMPARE

G&M - Barry Choi (2023-03-14)

The cost of food has risen sharply and Canadians are feeling the pinch. Grocery store chief executives have been grilled about their record profits by members of Parliament, but that won’t bring consumers any relief.


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QUEBEC FINTECH REPORT FOR 2022

Linkedin - Finance Montreal, Station Fintech, Fathom4Sight (2023-03-28)

Download the report in French: http://ow.ly/JwJR50NrpZq


SALE OF SILICON VALLEY BANK IN U.S. WILL NOT INCLUDE CANADIAN OPERATIONS

G&M - Stefanie Marotta (2023-03-28)

The fate of Silicon Valley Bank’s Canadian operation is in the hands of its court-appointed liquidator, after the division was left out of First Citizens BancShares Inc.’s takeover of parts of the failed American technology lender.


BITCOIN IS SURGING AMID BANKING CRISIS, BUT THE REASON IS NOT WHAT CRYPTO BROS THINK

G&M - Jacob Silverman (2023-03-28)

As a slow-motion banking crisis rippled through markets in recent weeks, something strange happened: Crypto prices rallied, with Bitcoin rising from a low of about US$20,000 to about US$28,700 in a week. Other tokens followed. By recent market standards, this is practically a bull run, and the crypto industry responded accordingly, pronouncing crypto a safe haven amidst wider financial turmoil. Here was one of those much sought-after use cases – while regular banks suffer, crypto only grows.


CANADA’S MAJOR BANKS TARGET NEW CANADIANS WITH CREDIT CARD OFFERS

G&M - Kelsey Rolfe (2023-03-28)

One of the main financial hurdles for newcomers getting established in Canada is building a credit score from scratch. But a host of financial institutions – from the big banks to credit unions and fintechs – are competing to make that easier with credit card options targeted at new Canadians.