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October 14th real estate report describing the issues in the market the last two weeks.


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.


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


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.


Mr. Michael R. King, Tangerine Chair in Finance and Co-Director, Scotiabank Digital Banking Lab / Ivey Business School at Western University


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.


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.


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


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


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


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


Review of small banks including Bridgewater,Vancity Bank, Concentra, Wealth One, Zag...


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


RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.


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 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

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/Gamfin.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.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.
 


Complete loyalty RFP  

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.
 


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.
 


Report on merchants extending financial services  

fsim.ca/docs/

Special report explaining why some merchants in the UK, U.S. and Canada are expanding their financial services. The paper discusses the structural and regulatory pressures facing merchants and explains the rational behind key decisions. This is an 8 page high level report
 


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

END OF AN ERA AS POLOZ EXITS BANK OF CANADA

G&M - DAVID PARKINSON (2021-06-01)

Stephen Poloz had only been Governor of the Bank of Canada for a few months in the late summer of 2013, when he gave a speech that defined his unique communication style and signalled a new era for a traditionally staid institution.


UBS WEALTH BANKERS GET DOSE OF CREDIT SUISSE TONIC IN KHAN PLA

Bloomberg - Patrick Winters and Marion Halftermeyer (2020-12-17)

Colleagues say the Pakistan-born executive is enthusiastic, energetic and talented. Former associates have described him as confident, even overly so. That said, he knows the business from several angles: Khan was a UBS auditor at Ernst & Young and a key competitor at Credit Suisse.


B.C. ECONOMIC BRIEFING

Central 1 - Central 1 (2020-12-08)

The unemployment rate edged lower to 10.7 per cent from 11.1 per cent in July as labour force participation edged up. Metro Vancouver’s rate came in at 12.4 per cent.


HOW CAN INSURANCE BROKERS USE RATE COMPARISON SITES TO BOOST THEIR BOOKS OF BUSINESS?

Insurance Business - Bethan Moorcraft (2020-12-07)

Enter, rate comparison websites. They’re all the rage in the UK and the USA, where consumers use comparison sites to shop for insurance much like Canadians do when comparing travel costs on sites like Expedia and Trivago. But Canadians are slowly starting to catch on to the insurance comparison trend. They’re searching for and finding platforms like LowestRates.ca, which is enabling consumers to compare insurance premium prices across a number of product lines, primarily in auto and home insurance.


INSURANCE INDUSTRY ASSOCIATION LAUNCHES PROJECT TO HELP ONTARIO HOSPITALITY SECTOR FIND COVERAGE

G&M - Clare O'Hara (2020-10-30)

The Insurance Bureau of Canada is offering to help members of Ontario’s hospitality sector struggling to renew policies owing to increased premium rates, but restaurant owners say the move will deter the Ford government from taking regulatory action against insurers who are dropping coverage for the sector.


THE LABOUR DIVIDE: EIGHT CHARTS THAT EXPLAIN CANADA’S UNEVEN JOB RECOVERY

G&M - Matt Lundy (2020-10-30)

So far, Canada’s labour recovery has been speedy and robust.


WHY FEDERAL CONSERVATIVES SHOULD BE CONCERNED ABOUT SASKATCHEWAN'S ELECTION RESULT

CBC - Kory Teneycke (2020-10-30)

Despite these limitations, the Buffalo Party finished third overall in the popular vote and scored strong second-place victories in four bedrock Conservative ridings.


WHY CANADA'S ANTI-MONEY LAUNDERING SYSTEM HAS FAILED SO BADLY

FP - Diane Francis (2020-10-30)

Any OSFI or RCMP intelligence just disappears into FINTRAC, which does not reciprocate, said Choules-Burbidge. That’s because it’s a useless appendage that reports to the Ministry of Finance. Worse, its director is a cabinet appointee who has no experience with financial crimes.


BANK OF MONTREAL EXPLORES OPTIONS FOR $270-BILLION ASSET MANAGEMENT ARM

FP - Jan-Henrik Förster and Kevin Orland (2020-10-30)

The lender is working with an adviser to study strategic alternatives for the unit, according to the people, who asked not to be identified because the information is private. The review, which is at an early stage, could lead Bank of Montreal to seek a buyer for some parts of the asset management business outside its home market, the people said.


OSC UNVEILS CHARTER FOR OFFICE TO PROMOTE INNOVATION AND REDUCE REGULATORY BURDEN

FP - Barbara Schecter (2020-10-30)

A charter unveiled Thursday by a newly created branch of the Ontario Securities Commission lays the groundwork for new forms of capital raising, more avenues for innovators and a reduced regulatory burden.


PLANSWELL ANNOUNCES US EXPANSION

Cision - Planswell (2020-10-30)

Planswell, the Toronto-based startup delivering free financial plans to users in three minutes, today expands its offering to US residents. Starting today, Americans from coast to coast can build a free financial plan by going to Planswell.com


JACK MA’S ANT IPO LURES $3 TRILLION OF BIDS IN RETAIL FRENZY

Bloomberg - Jeanny Yu and John Cheng (2020-10-30)


TD BANK THANKS GLOBAL EMPLOYEES WITH $500 PANDEMIC BONUSES

Bloomberg - Kevin Orland (2020-10-30)


CHINA’S MEGA BANKS PARE PROFIT DROPS AS ECONOMY RECOVERS

Bloomberg - Staff (2020-10-30)


NEW LEADERSHIP AT SUN LIFE GLOBAL INVESTMENTS

Investment Executive - Fiona Collie (2020-10-30)

“We thank Jordy for his contributions and wish him the best in his future endeavours,” a Sun Life spokesperson said in the email.


THE RISING PRICE OF BANK MISCONDUCT

Investment Executive - James Langton (2020-10-30)

In the report, the rating agency said growing investor attention to environmental, social and governance (ESG) issues, coupled with robust regulatory action for conduct failings, is making governance critical for banks.


HOW TO ADAPT PORTFOLIOS IN A LOW-RATE WORLD

Investment Executive - Mark Burgess (2020-10-30)

“It doesn’t seem — given the central bank stance and what’s been going on — that we will get a return to higher interest rates anytime in the near future or, potentially, ever again,” said Greg Taylor, chief investment officer with Purpose Investments in Toronto.


CANADIAN DB PENSION PLANS GAINED IN Q3, SAYS RBC REPORT

Investment Executive - IE (2020-10-30)

Canadian defined benefit (DB) pensions gained a median 3.0% in the third quarter of 2020, building on the “liquidity-driven” momentum in the global markets that began at the end of the first quarter, according to a report on pension plans published by RBC Investor & Treasury Services on Thursday.


WAVE OF M&A PREDICTED TO HIT US COMMUNITY BANKS

Banking Exchange - Staff (2020-10-30)

The US banking sector is poised for a significant increase in merger and acquisition (M&A) activity, according to a new report from investment manager FJ Capital.


FIRST CITIZENS, CIT PLAN MERGER TO CREATE $100BN BANK

Banking Exchange - Staff (2020-10-30)

First Citizens Bank and CIT Group have announced plans to merge, creating a $100 billion bank that would rank in top 20 institutions in the US.


MASTERCARD TAPS AI TO HELP BANKS FIGHT OFF CYBER RISKS

Finextra - Finextra (2020-10-30)

Drawing on the capabilities of RiskRecon, which Mastercard acquired earlier this year, the Cyber Secure suite's AI combines multiple public and proprietary data sources.


FALLING HOME PRICES, UNEMPLOYMENT TO UPSET BANKS' BALANCE SHEETS – ANALYST

Mortgage Broker News - Ephram Vecina (2020-10-30)

With the looming threat of major home-price drops, a housing market correction accompanied by mounting unemployment will likely take a significant chunk off Canadian banks’ bottom lines, according to Barclays Plc. analyst John Aiken.


FEDERAL GOVERNMENT RELEASES MORE DETAILS OF FIVE-YEAR HOUSING INITIATIVE

Mortgage Broker News - Ephram Vecina (2020-10-30)

The first round, dubbed the Data Driven phase, will attempt to address gaps in housing data “through technology or methodology-based solutions to improve data collection, sharing, analysis and integration, thus improving decision-making on housing supply,” the Canada Mortgage and Housing Corporation said late last week.


ISO 20022 HOLDS KEY TO FINTECH INNOVATION AND COMPETITION IN YEARS TO COME

Finextra - Finextra (2020-10-29)

Preparation for and adaption to ISO 20022 has been a 15-year journey. The significance of its aims have has possibly been highlighted in recent months as electronic payments spiked amidst the Covid-19 pandemic, while the difficult economic conditions have heightened the importance of liquidity and cash management for businesses fighting for their survival.


FISCAL TARGETS WILL COME, BUT EMERGENCY SPENDING MUST STAY FOR NOW, FREELAND SAYS

G&M - BILL CURRY, MARK RENDELL, JOSH O’KANE (2020-10-29)

Finance Minister Chrystia Freeland says the federal government’s recovery plan will deal with the debt and deficits built up during the COVID-19 pandemic, but also warned that it is too soon to scale back emergency spending.


SUN LIFE NAMES NEW INTERIM PRESIDENT OF MUTUAL-FUND DIVISION

G&M - Clare O'Hara (2020-10-29)

Sun Life Financial Inc.'s mutual-fund business is shaking up its leadership.


BANK OF CANADA OUTLOOK SIGNALS THE LEGACY OF COVID-19 CRISIS WILL LINGER FOR YEARS

FP - Kevin Carmichael (2020-10-29)

The Bank of Canada is setting up to run a high-pressure economy until at least 2023, a delicate operation that will require lots of tinkering along the way.


CREDIT SUISSE PROFIT SLIDES AS WEALTH MANAGEMENT FEES FALL

Reuters - Brenna Hughes Neghaiwi (2020-10-29)

Credit Suisse CSGN.S on Thursday posted a steeper-than-expected slide in third-quarter profit, as a surge in investment banking failed to offset a slowdown in wealth management and other headwinds it chalked up to exceptional circumstances.


STANCHART FLAGS IMPROVED LOAN LOSS OUTLOOK AFTER QUARTERLY PROFIT BEATS ESTIMATES

Reuters - Sumeet Chatterjee, Lawrence White (2020-10-29)

Standard Chartered STAN.L posted a smaller-than-expected 40% slide in third-quarter profit as it lowered its loan loss expectations linked to the coronavirus pandemic, adding that it believes client demand will increase next year.


BANKS ROLL OUT ROBOTS AS PANDEMIC SHAKES UP IT PLANS

Reuters - Iain Withers, Anna Irrera (2020-10-29)

When banks were flooded with loan requests from businesses struggling with the fallout of the coronavirus pandemic, hastily built robots helped several lenders cope with the deluge.


ONTARIO PENSION MANAGER INVESTS $750 MILLION IN PRIVATE EQUITY BY PAULA SAMBO OCTOBER 28, 2020, 1:48 PM EDT

Bloomberg - Paula Sambo (2020-10-29)


EQUITABLE REACHES DEAL WITH VENERABLE TO REINSURE $12 BILLION IN ANNUITIES

WSJ - Leslie Scism (2020-10-29)

Equitable Holdings Inc. will transfer financial risk for $12 billion of retirement-income annuities to reinsurer Venerable Holdings Inc., as life insurers continue to reduce exposures on their books in a challenging environment for turning profits.


A BROKEN UP AIG WOULD STILL HAVE WORK TO DO

WSJ - Telis Demos (2020-10-29)

American International Group is drastically reworking its business to focus on property-and-casualty insurance by separating out its life-and-retirement unit. But what remains still has to perform.


COVID-19 SPURS SPIKE IN LIFE INSURANCE CLAIMS

Investment Executive - Michelle Schriver (2020-10-29)

For example, in April 2020, aggregated individual life insurance claims amounted to more than $502 million, compared to roughly $442 million a year earlier, the report said.


INTACT TO EXIT THIS LINE OF BUSINESS

Canadian Underwriter - Jason Contant (2020-10-29)

Canada’s largest insurer announced late Tuesday that its brands Intact Insurance and belairdirect will no longer offer optional auto coverage in British Columbia.


BANK OF CANADA GOVERNOR SAYS DIGITAL DOLLAR PROJECT MOVING PAST TRIAL STAGE

Coindesk - Sebastian Sinclair (2020-10-29)

In an interview with Reuters published Thursday, Bank of Canada (BoC) Governor Tiff Macklem said his institution is working with G7 member states on its plans for a central bank digital currency (CBDC).


2010: BAILING OUT THE WEALTHY: THE GLOBAL FINANCIAL CRISIS, PONZI NEOLIBERALISM, AND URBAN SOCIAL CRISIS

UofT - Dr. R.A. Walks (2020-10-29)

This article seeks to critically examine the public policy response to the global financial crisis in the core of the developed world, and to understand the likely implications of this set of policy responses for the future trajectory of urban social crises.


2014: RICHES TO RAGS? SUMMARY OF POSSIBLE RISKS FOR GENWORTH MI CANADA, INC.

fsim.ca - Mark Sibthorpe (2020-10-29)

Yesterday, 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.


A FINAL CONVERSATION WITH CMHC’S EVAN SIDDALL AND MPC’S PAUL TAYLOR

Mortgage Broker News - J.P. Boutros (2020-10-29)

On Tuesday, CMHC President and CEO Evan Siddall joined MPC President and CEO Paul Taylor for what was billed as their final public conversation before Siddall’s departure at the end of 2020, which has proven to be a very challenging year.


BANKS MAY HAVE TO BRACE FOR HEAVY LOSSES AS COMMERCIAL PROPERTY PRICES PLUNGE

CNBC - Weizhen Tan (2020-10-29)

During the 2008 great financial crisis, for example, such loan losses accounted for between 25% and 30% of total loan write-offs in the U.S.


BANK OF CANADA SAYS ECONOMY WILL LIKELY BE SCARRED BY COVID-19 UNTIL 2023

CBC - Don Pittis (2020-10-29)

Not only that, but jobs — hit harder in this recession than the last one — are disproportionately affecting Canadians with the lowest wages. While 425,000 jobs disappeared following the 2008 credit crisis, this time around, employment has been cut by 700,000.


U.S. ECONOMY NOTCHES RECORD GROWTH IN 3RD QUARTER SOCIAL SHARING

CBC - Reuters (2020-10-29)

Gross domestic product rebounded at a 33.1 per cent annualized rate last quarter, the Commerce Department said in its advance estimate on Thursday. That was the fastest pace since the government started keeping records in 1947 and followed a historic shrinkage rate of 31.4 per cent in the second quarter


DOWNTOWN MONTREAL MERCHANTS NEED TAX RELIEF, NOW

G&M - KONRAD YAKABUSKI (2020-10-28)

The opening of Japanese retailer Uniqlo’s first Quebec store last week had the markings of a major happening in downtown Montreal, as hundreds of people lined up for hours outside the Eaton Centre location for chance to shop at the trendy chain’s largest Canadian outlet. For most in the crowd, it marked their first trip downtown in months.


BROOKFIELD BUYS REST OF MORTGAGE INSURER GENWORTH

CBC - CP (2020-10-28)

Brookfield Business Partners LP has signed a deal to buy the remaining interest in Genworth MI Canada Inc. that it does not already own in an offer that values the company at about $3.8 billion.


A FRESH WAVE OF LAYOFFS IS PUSHING ALBERTANS TO THE EDGE — AND IN DANGER OF LOSING THEIR HOMES

FP - Geoffrey Morgan (2020-10-28)

High unemployment has led to a higher rate of mortgage deferrals and mortgages in arrears in Alberta than elsewhere in the country. Economists say that as the mortgage deferral grace period is coming to an end, and support programs such as the Canada Emergency Response Benefit (CERB) wrap up, the next few months could potentially lead to more turmoil in the province’s housing market.


ANCHORS AWEIGH!

FP - Terence Corcoran (2020-10-28)

The last monetary report in July was a grim synopsis of looming economic decline. To quote one passage: “The large declines in both demand and supply are extraordinary. Over a longer horizon, the pandemic could cause large and lasting changes in consumer preferences and other sources of demand. Similarly, the scope of possible structural changes to a post-pandemic economy is vast, and the timing of adjustments will remain unknowable as long as COVID-19 continues to be a threat.”


CRACKS IN REAL ESTATE MARKET FAIL TO RATTLE CANADA’S BIG BANKS

FP - Kevin Orland, Ari Altstedter (2020-10-28)

A number of forecasters, including Moody’s Corp., UBS Group AG and the country’s top housing regulator, are predicting a sharp correction over the next year. Canada’s largest banks aren’t worried: on average, the six largest lenders see price declines of about 3 per cent over the next 12 months, according to forecasts they use to determine potential credit losses. Bank of Montreal sees no change at all in the nation’s average housing price.


THE FORCES DRIVING THE CANADIAN DOLLAR HAVE CHANGED — IT'S NOT JUST OIL AND THE BANK OF CANADA ANYMORE

FP - Susanne Barton, Michael Tobin and Robert Fullem (2020-10-28)

The loonie has traditionally been seen as a commodity-linked currency because of the country’s vast natural resources. But trillions of dollars of stimulus, along with interest rate cuts from the Bank of Canada, the Federal Reserve and other central banks have realigned those forces.


STOCKS TUMBLE AS LOCKDOWN FEARS GRIP INVESTORS

Reuters - Tom Wilson (2020-10-28)

European shares .STOXX fell on reports of potential lockdowns in Germany and France, losing 2.5% to hit five-month lows, rattled by a media report that France might bring in a national lockdown from midnight on Thursday.


BANK OF CANADA TO REINFORCE LOW FOR LONG: DECISION-DAY GUIDE

Bloomberg - Shelly Hagan (2020-10-28)


CANADIANS’ FINANCES CAN’T HANDLE SECOND WAVE OF COVID, POLL SAYS

Bloomberg - Kevin Orland (2020-10-28)


WHAT THIS VANCOUVER PLAINTIFF’S LAWYER SAYS ABOUT PANDEMIC BUSINESS INTERRUPTION COVERAGE

Canadian Underwriter - Greg Meckbach (2020-10-28)

“People who have ‘all-risk’ policies should be covered under business interruption,” said Tony Vecchio, a Vancouver-based personal injury lawyer. “If it is an all-risk or all-perils policy, why would a pandemic be excluded? And then if it is not excluded, how are you supposed to interpret that?”


MILAN FIGHTS AGAINST NEW LOCAL CORONAVIRUS LOCKDOWN

FT - Silvia Sciorilli Borrelli (2020-10-28)

As Italian businesses grapple with the sweeping new Covid-19 restrictions introduced by the central government, the country’s financial capital is fighting to avoid a local lockdown that some people fear will cripple its economy.


DEUTSCHE BANK RETURNS TO PROFIT AS BOND TRADING SURGES

FT - Olaf Storbeck (2020-10-28)

Deutsche Bank returned to profit for the first time since early 2019 as a surge in bond trading, falling costs and lower provisions for bad loans buoyed Germany’s largest lender.


THE DEUTSCHE BANK WHISTLEBLOWER WHO GAVE UP $8M IS GOING BROKE

FT - Tom Braithwaite (2020-10-28)

Four years ago, Eric Ben-Artzi was awarded $8.25m by the Securities and Exchange Commission for helping to uncover false accounting at Deutsche Bank. Now the 48-year-old former risk manager, a nephew of the wife of Israeli prime minister Benjamin Netanyahu, is going broke. “I would need a near miracle to avoid bankruptcy at this point,” said Mr Ben-Artzi from Tel Aviv, where he is in quarantine after a trip to the US. That Mr Ben-Artzi failed to benefit from the SEC award is not surprising. The securities watchdog had allocated it to him in 2016, a year after it fined Deutsche Bank $55m for artificially boosting its balance sheet. But Mr Ben-Artzi rejected it, writing in the Financial Times that he could not take money that had been extracted from “Deutsche’s shareholders instead of the managers responsible”. He suggested a revolving door culture of top lawyers shuffling between the SEC and Deutsche Bank had made the watchdog go easy on management. His sacrifice attracted praise from around the world — and heavy fire from former friends and allies.


DIRECT LENDING RUSH

FT - Podcast (2020-10-28)

How the pandemic is expected to accelerate the shift from public debt markets to private credit


HSBC AND SANTANDER STEP UP COST-CUTTING EFFORTS

Finextra - Finextra (2020-10-28)

“SCF and Openbank are two businesses with excellent potential for growth," she says. "SCF, Europe’s consumer finance leader, serves over 20 million customers in 15 markets. Openbank is outperforming - and outgrowing - European digital banks in deposits, with a full-fledged retail product suite marketed on an innovative, scalable and efficient banking platform, a software built by us."


BANK OF CANADA TO REDUCE BOND PURCHASES, RECALIBRATE PROGRAM AS RECOVERY ENTERS LESS CERTAIN PHASE

G&M - DAVID PARKINSON (2020-10-28)

The Bank of Canada said it will reduce its Canadian government bond purchases to $4-billion a week while shifting more of its purchases to longer-term bonds, as the bank recalibrates its quantitative easing to deliver stimulus to an economy that it cautions is headed into a slowing and less certain phase of recovery.


INSURER TO CUT THOUSANDS OF JOBS

Insurance-Portal.ca - Frederique De Simone (2020-10-28)

 


ELLEN MOORE HANDS OVER THE REINS OF CHUBB CANADA

Insurance-Portal.ca - Aurelia Morvan (2020-10-28)

Until her departure, Moore will serve as Chair of Operations at Chubb Canada. This role mainly consists of advising the new president of Chubb Canada, John Alfieri, whose position is effective immediately.


BANK OF CANADA RATE ANNOUNCEMENT

Central 1 - Helmut Pastrick (2020-10-28)

The Bank of Canada’s monetary stance was little changed following today’s announcement except for an adjustment to its bond-buying program. The Bank is focusing on longer-term bond maturities, which have more infl uence on household and business borrowing costs, than shorter-term bonds and treasury bills. In addition, their weekly bond purchases will be reduced to four billion per week from fi ve billion. The Bank purchased shorter-term fi nancial assets in the early stage of the pandemic to provide liquidity to the market but that is no longer required and the Bank’s shift to longer-term bonds is intended to support and promote economic growth.


CELEBRATING A CREDIT UNION CHAMPION OF 47 YEARS

Alterna - Press Release (2020-10-28)

Over his 47 year career, Ray breathed new life into the institutions he led as CEO, including Bayshore Credit Union (now merged with Quinte First Credit Union) and City Savings & Credit Union (City Savings). A pioneer of technology, he brought City Savings telephone, online, and mobile banking. He also introduced e-transfers and me-to-me money transfers – helping members to better manage their money.


SURGE IN VIRUS CASES SENDS WALL STREET TUMBLING; TSX AT LOWEST LEVEL SINCE JULY

G&M - Staff (2020-10-28)

The S&P 500 and the Dow hit their lowest levels since late-September on Wednesday as a surge in coronavirus cases in the United States and Europe dashed hopes of a quick global economic recovery. Selling pressure was nearly as intense in Canada, where the energy sector had to contend with a 5% drop in crude oil prices. The TSX was down more than 2% at midday, to the lowest levels it has seen in more than three months.


THE DEFICIT MYTH: MODERN MONETARY THEORY AND THE BIRTH OF THE PEOPLE’S ECONOMY

Foreign Affairs - Stephanie Kelton (2020-10-28)

In this clear and vigorously written book, she argues that any country that borrows in its own currency in a floating exchange-rate system has no effective limit on its central-government debt. A country reaches the limits of its ability to spend when the rate of inflation rises; the size of its budget deficits and public debt is irrelevant. 


AUTOMATION TO DRIVE EVOLUTION OF FINANCIAL SERVICES

Bobsguide - Video (2020-10-27)

In this bobsguide video, sponsored by FactSet, Drake Bushnell, VP director of content and technology solutions strategy at FactSet and Byron Bianco, managing director of BMO Capital Markets discussed how the use of data will change the financial services industry.


TD LAUNCHES NEW FINANCIAL PLANNING APP

G&M - Clare O'Hara (2020-10-27)

Toronto-Dominion Bank is taking on the robo-adviser sector with a new financial planning app that aims to draw in young do-it-yourself investors who have flocked to trading on their mobile devices during the COVID-19 pandemic.


FINANCIAL COMPANY LIKELY THE UNNAMED BIDDER FOR HALIFAX-BASED CHORUS AVIATION

G&M - Eric Atkins (2020-10-27)

A financial investor, not a rival airline, is likely the suitor of Halifax-based aircraft lessor and operator Chorus Aviation, which on Friday said it had received a takeover offer from an unnamed bidder, analysts say.


CANADIAN DOLLAR HITS 10-DAY LOW AS VIRUS CLIPS GLOBAL OUTLOOK

G&M - Fergal Smith (2020-10-27)

The Canadian dollar weakened by the most in nearly five weeks against its U.S. counterpart on Monday, as investors grew more worried about the outlook for the global economy and eyed a Bank of Canada interest rate decision this week.


TRUDEAU AND THE FEDERAL GOVERNMENT HAVE LOST THEIR WAY, INNOVATORS' GROUP SAYS

FP - Kevin Carmichael (2020-10-27)

Jim Balsillie’s band of innovators and technologists is tiring of Justin Trudeau’s approach to the digital economy, mostly because they’ve become unsure if the prime minister actually has one.


HSBC TO REVAMP BUSINESS MODEL AS LOWER INTEREST RATES HIT PROFIT

Reuters - Sumeet Chatterjee, Lawrence White (2020-10-27)

HSBC Holdings PLC HSBA.L on Tuesday signalled it would embark on a pandemic-induced overhaul of its business model, seeking to flip its main source of income from interest rate to fee-based businesses.


TOP CANADA PENSION FUND HUNTS FOR DEALS IN ‘CHEAP’ TRAVEL SECTOR

Bloomberg - Derek Decloet and Paula Sambo (2020-10-27)


HSBC GOT ITS LIONS BACK. CAN THE BANK ROAR AGAIN?

Bloomberg - Andy Mukherjee (2020-10-27)

HSBC Holdings Plc is a bank in limbo. Pandemic-related bad loans have messed up its cost-reduction plan. Coming in the crosshairs of the U.S.-China conflict made investors nervous about the jewel in its crown: the Hong Kong franchise. 


ANT GROUP SETS IPO PRICING

Finextra - Finextra (2020-10-27)

Chinese fintech giant Ant Group has set the price for its upcoming initial public offering, which is expected to raise a record $34 billion.


FEDERAL BUDGET UPDATE WON’T HAVE FISCAL ANCHOR, PM SAYS

Investment Executive - CP (2020-10-27)

The federal government’s promised update on the health of its finances won’t have a specific anchor to guide decisions and keep spending from spiralling out of control, Prime Minister Justin Trudeau says.


SUN LIFE DEAL FOR U.S. FUND MANAGER A WIN: MOODY’S

Investment Executive - James Langton (2020-10-27)

Moody’s said that the acquisition is consistent with SLF’s strategy to build up its third-party asset management capabilities while also limiting its reliance on asset management fees.


INTACT’S TAKE ON REGULATING COMMERCIAL ‘MIDDLE PLAYERS’

Canadian Underwriter - Greg Meckbach (2020-10-27)

“We know there are some things happening in the market where some rules…do not apply to everyone in our market, and maybe those rules will have to change or be adapted to a new environment or a new reality,” Louis Gagnon, president of Intact Financial Corp.’s Canadian operations, said during the CEO Panel hosted by the Insurance Brokers Association of Ontario (IBAO).


WHAT BROKERS REALLY THINK ABOUT THEIR JOBS AND THEIR BOSSES

Canadian Underwriter - David Gambrill (2020-10-27)

The 2020 National Broker Survey was conducted in the summer, during the middle of the COVID-19 global pandemic. The novel coronavirus caused many brokerages to go digital in a hurry; many brokers started working from home in March to avoid the spread of the virus. At the same time, commercial clients facing government-ordered business lockdowns were all trying to reach their brokers for premium relief.


RBC FORECASTS CANADIAN MORTGAGE DEFAULTS WILL START RISING NEXT YEAR

Better Dwelling - Stephen Punwasi (2020-10-27)

Canadian real estate markets aren’t yet in the clear, despite the surge in buying activity. RBC Capital Markets, in a note to institutional clients, is forecasting mortgage defaults won’t rise until the second half of 2021. Analysts authoring the report said a combination of payment deferrals and government support, “kicked the can down the road.”


A FAILURE OF THE FINANCIAL PLANNING PROFESSION WAS EXPOSED IN THE PANDEMIC

G&M - Rob Carrick (2020-10-27)

Financial Literacy Month is just ahead, so prepare for a lot of self-important outreach by various players in the world of personal finance.


PUBLIC CONSULTATION – DRAFT GUIDELINE E-4

OSFI - OSFI (2020-10-27)

OSFI is seeking feedback on draft Guideline E-4 Foreign Entities Operating in Canada on a Branch Basis, which will replace existing guidelines E-4A Role of the Chief Agent and Record Keeping Requirements and E-4B Role of the Principal Officer and Record Keeping Requirement


INDIA BANS MOBILE PAYMENT PROVIDERS FROM LAUNCHING NEW PROPRIETARY QR CODES

NFCW - Tom Phillips (2020-10-27)

The move is part of the RBI’s plan to implement a fully interoperable QR code infrastructure in 2022.


CANADIAN NEWS PUBLISHERS CALL ON GOVERNMENT TO TAKE ON GOOGLE/FACEBOOK, URGE ADOPTION OF THE AUSTRALIAN MODEL

G&M - Josh O'Kane (2020-10-26)

Canadian news publishers want government approval to seek compensation from digital giants such as Facebook Inc. and Alphabet Inc.'s Google for using their content, including the power to bargain as an industry to negotiate the terms.


INVESTMENT INDUSTRY MAKING THE MOST OF VIRTUAL EVENTS

G&M - Jameson Berkow (2020-10-26)


AMERICAN EXPRESS ISSUES DISMAL OUTLOOK ON BUSINESS-TRAVEL SPENDING AS PROFIT SLUMPS

G&M - Nikent Nishant (2020-10-26)

American Express Co on Friday warned that business travel spending would not pick up before early 2022 after reporting underwhelming third-quarter profit due to weak spending on travel and entertainment by its card users.


HOW THE PANDEMIC 'LIT THE FIRE' OF A RED-HOT REAL ESTATE MARKET INSIDE THE ATLANTIC BUBBLE

FP - Victor Ferreira (2020-10-26)

“It’s the first time in a long time where I’ve seen listings go at asking price or over asking price,” he said, noting the last time he experienced a market like this was in the early 2000s. “I was just speaking to another agent about this: Houses are up for 48 hours and they’re gone.”


MORTGAGE RATES MAY RISE AS BANK OF CANADA ENDS EMERGENCY PANDEMIC PROGRAM

FP - Liz Beddall (2020-10-26)

“For those thinking rates could drop to below 1%, this move signals that that may not happen anytime soon,” says Jesse Abrams, founder and CEO of the online mortgage brokerage Homewise.


WIRECARD NA SOLD

The Logic - Zane Schwartz (2020-10-26)

The deal is backed by private investment management firm Centerbridge Partners, which is making a majority equity investment in Syncapay, and existing Syncapay shareholders like Bain Capital Ventures and Silversmith Capital Partners, the statement added.


WELLS FARGO EXPLORES SALE OF ASSET MANAGEMENT BUSINESS - SOURCES

Reuters - David French (2020-10-26)

Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank’s biggest shake-up since former Bank of New York Mellon chief executive Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday.


CENOVUS TO CREATE CANADA OIL GIANT WITH $2.9 BILLION HUSKY DEAL

Bloomberg - Simon Casey and Robert Tuttle (2020-10-26)

Cenovus Energy Inc. agreed to buy Husky Energy Inc. in a C$3.8 billion ($2.9 billion) all-stock deal that will combine two of the largest players in Canada’s beleaguered oil-sands industry, which is struggling after the slump in crude prices.

The transaction will create the country’s third-largest oil and natural gas producer and lead to C$1.2 billion in savings, the companies said Sunday in a statement. Following the completion of the deal, Hong Kong billionaire Li Ka-shing and CK Hutchison Holdings, the conglomerate he founded and Husky’s biggest shareholder, will together own about 27% of Cenovus.


UBS SET TO BOOST FIXED PAY, CUT BONUSES IN COMPENSATION REVAMP

Bloomberg - Marion Halftermayer (2020-10-26)


BUSINESS ON BIDEN: NOT SO BAD, GIVEN THE ALTERNATIVES

WSJ - Greg IP, Ken Thomas (2020-10-26)

Many executives see the Democratic nominee as less adversarial than Sanders or Warren, and less unpredictable than Trump. Yet political attitudes vary considerably by industry and type of business.


PANDEMIC-DRIVEN TRAVEL HURDLES HIT ECONOMY HARD: STATSCAN

Investment Executive - James Langton (2020-10-26)

Study estimates that travel restrictions are taking heavy toll on GDP, jobs


CHANGE IS COMING IN 2021 FOR WEALTH MANAGEMENT: FORRESTER

Investment Executive - Fiona Collie (2020-10-26)

Technology can help firms and advisors meet changing client expectations


HOW SOLVENCY RISK HAS CHANGED SINCE THE DAYS OF THE EIGHT-TRACK TAPE

Canadian Underwriter - Greg Meckbach (2020-10-26)

“When I first started in this industry in the early days, I was doing commercial underwriting and there were a lot of subscription policies and just a lot of small companies around that would [accept risks] on different things,” said Tisdale, who retired this past summer as president and chief operating officer of Allstate Canada units Pembridge Insurance Company and Pafco Insurance Company. (Pembridge distributes through brokers, while Pafco writes non-standard auto.) “A lot of those companies ended up going bankrupt because they weren’t properly capitalized or they just got into risks that they probably should not have.”


NOW WOULD BE A CRAZY TIME FOR BANKS TO RESUME DIVIDENDS

FT - Patrick Jenkins (2020-10-26)

On Friday, Barclays’ share price jumped 7 per cent after it reported upbeat results for the third quarter of the year. A declining quarter-on-quarter trend in bad-debt provisioning plus a booming markets business equalled forecast-beating profits.


EUROPEAN BANK ETFS LOSE OUT AS INVESTORS FLOCK TO US COUNTERPARTS

FT - Steve Johnson (2020-10-26)

Exchange traded fund investors are shunning European banks and flocking to their US counterparts, ignoring valuations that have plunged to their lowest in decades.


ALL THE PRESIDENT’S DEBTS: TO WHOM TRUMP OWES MONEY

FT - Robert Armstrong, Joe Rennison (2020-10-26)

These are tough times in the real estate market. The Covid-19 crisis has hit asset values, particularly commercial real estate in cities such as New York. Investors holding debt with upcoming maturities are preparing for tricky negotiations with their debtors. The negotiations will be trickier if the debtor is the president of the United States.  Virtually all of Donald Trump’s debt — there is at least $1.1bn of it, according to his government financial disclosures and other documents — is backed by real estate, mostly linked to a small number of buildings and golf courses that form the core of the Trump business empire. About $900m of that debt will come due in Mr Trump’s second term, should he win the November 3 presidential election. 


PENSION BUYOUTS CARRY NEEDLESS CREDIT RISKS

FT - Jonathan Ford (2020-10-26)

Imagine you are a banker and a customer approaches you for a loan of £850,000 to buy a £1m house. Would you be willing to lend the money on an unsecured basis, or would you first insist on taking a charge over the property? 


TRADERS AND VENUES URGED TO PREPARE FOR NON-EQUIVALENCE

Bobsguide - Bobsguide (2020-10-26)

“I have not the impression that the European Commission is inclined to move forward with an equivalence decision for trading venues swiftly, particularly in the absence of an overall agreement with the United Kingdom,” said Markus Ferber, member of the European Parliament in an email.


INDIA PREPS FINTECH REGULATORY SANDBOX FOR SMART CITY HUB

Finextra - Finextra (2020-10-26)

The sandbox will let established players and startups in the banking, capital markets and insurance sectors test products and services in a live environment with a limited number of real customers for a set time frame.


DEBUNKING OPEN BANKING TO DEMOCRATISE FINANCIAL SERVICES

Dynamic Business - Carolyn Breeze (2020-10-26)

So far, the lack of participating data recipients comes down to a complex accreditation process and CDR framework which is being reviewed and simplified by the Australian Competition and Consumer Commission (ACCC). 


ISRAEL’S FINTECH ECOSYSTEM IS HELPING USHER IN A NEW ERA OF GLOBAL FINANCE

CTECH - CTECH (2020-10-26)

In 2019 alone, Israel’s Fintech sector raised $1.8 billion in equity, representing a 100% increase from 2018 and jumping to 5% of the world’s total venture investments in Fintech - compared to onlyranked fifth for global investments following powerhouses such as The U.S, China, India, and the U.K.


MARKETS WAIT FOR POLICY HINTS IN BANK OF CANADA’S INTEREST RATE DECISION

G&M - DAVID PARKINSON (2020-10-26)

Balancing a stronger-than-expected economic rebound with a second wave of the COVID-19 pandemic, the Bank of Canada looks unlikely to make any dramatic moves in this week’s monetary policy decision. But the financial markets will nevertheless be looking for hints on where the central bank will take its highly stimulative policy position from here.


CANADA’S ANNUAL INFLATION RATE UP 0.5 PER CENT IN SEPTEMBER

G&M - Jordan Press (2020-10-26)

Canada’s headline inflation measure went up in September by 0.5 per cent compared with a year ago, a better-than-expected increase, but one that experts say won’t sway the Bank of Canada’s stimulus measures.


TARGET2 EXPERIENCES TOTAL SYSTEM FAILURE, SEPA PAYMENTS DELAYED

Finextra - Finextra (2020-10-26)

In a status update posted Sunday, the ECB states that “due to an internal issue affecting the Target2 infrastructure, all settlement services became unavailable from approximately 14:40 CET."


NEW REAL ESTATE PLAYERS TRY TO GAIN FOOTHOLD IN CANADA’S HOT MARKET

G&M - Rachelle Younglai (2020-10-26)

New real estate players are trying to grab a piece of Canada’s booming real estate market, taking on traditional brokerages in the latest battle for a share of the lucrative business.


MORGAN STANLEY SAYS IT’S TIME FOR ROTATION OUT OF STAY-AT-HOME STOCKS. PLUS, THE SURPRISING CASE FOR WHY BONDS ARE A BARGAIN

G&M - G&M (2020-10-26)

Morgan Stanley U.S. equity strategist Michael Wilson, among the first Wall Street pundits to correctly assess the sustainability of the post-March equity rally, is now warning clients against the current work-from-home-related market winners in favour of neglected materials and industrial stocks.


BOND DEFAULTS DELIVER 99% LOSSES IN NEW ERA OF U.S. BANKRUPTCIES

FP - Jeremy Hill and Max Reyes (2020-10-26)

Bankruptcy filings are surging due to the economic fallout of COVID-19, and many lenders are coming to the realization that their claims are almost completely worthless. Instead of recouping, say, 40 cents for every dollar owed, as has been the norm for years, unsecured creditors now face the unenviable prospect of walking away with just pennies — if that.


BANK OF CANADA ALREADY PUSHING THE LIMITS OF THE DOMESTIC BOND MARKET

FP - Theophilos Argitis (2020-10-26)

Market operation data from the Bank of Canada show benchmark bonds — those currently being sold by the government, as opposed to older debt — are making up a growing share of the central bank’s secondary market purchases.


AIG NAMES NEW CEO, PLANS TO SPIN OFF LIFE AND RETIREMENT UNIT

Reuters - Suzanne Barlyn, Alwyn Scott (2020-10-26)

Insurer American International Group Inc AIG.N on Monday said its board approved a plan to separate the life and retirement business from the rest of the company, and named President Peter Zaffino as chief executive officer, effective next year.


GOLDMAN SACHS ATTEMPTED TO COVER UP SEXUAL MISCONDUCT, LAWSUIT CLAIMS

Reuters - Staff (2020-10-26)

Crawford, who was a confidant of the alleged victim, attempted to speak up about the alleged misconduct, the lawsuit said, and was subsequently fired after 10 years of “exemplary performance.”


JPMORGAN CURRENCY DEAL HIGHLIGHTS FINANCE’S GREEN SHIFT

WSJ - Anna Hirtenstein (2020-10-26)

Green finance is making tracks into foreign-exchange markets, with JPMorgan arranging a type of currency derivative for Italy’s Enel that is linked to both companies’ sustainability targets.


TIME FOR BOC TO PULL BACK ON QE, NBF SUGGESTS

Investment Executive - James Langton (2020-10-26)

In a research note, NBF said the bank’s policy rate is expected to remain at its rock-bottom level of 0.25% at its rate decision on Wednesday, and likely until 2023 at least.


FUND DEALERS FOCUS ON MIDDLE-CLASS INVESTORS

Investment Executive - James Langton (2020-10-26)

With nearly 80,000 reps serving nine million households with an average $75,000 in financial assets, mutual fund reps represent the face of financial advice to Canada’s middle class, according to a new report from the Mutual Fund Dealers Association of Canada (MFDA).


DEUTSCHE BANK IN TALKS TO SELL POSTBANK IT UNIT

Finextra - Finextra (2020-10-23)

The offloading of PBS would go some way to reaching Deutsche Bank's goal of cutting 18,000 jobs under a mammoth restructuring programme currently underway at the German lender.


STREETWISE NEWSLETTER: SUN LIFE TO BUY MAJORITY STAKE IN U.S.-BASED LOAN PROVIDER CRESCENT

G&M - Clare O'Hara (2020-10-23)

Sun Life Financial Inc. is set to buy a majority stake in U.S.-based Crescent Capital Group, a US$28-billion loan provider the insurer had been looking to add to its investment portfolio for almost two years.


BARCLAYS RECOVERS AS BAD DEBT CHARGES FALL

FT - Stephen Morris (2020-10-23)

Barclays reported a big drop in provisions for bad loans in the third quarter as the initial economic shock from coronavirus subsided, while revenue at its trading arm continued to surge in turbulent markets, driving better than expected profits.


THE SWEDISH EXCEPTION AND THE EFFECT ON HOUSE SALES

FT - Alice Kantor (2020-10-23)

Iris Rosa, a 33-year-old fintech developer, decided to move with her husband from their 45 sq m flat in Lidingö, an island in the Stockholm archipelago, to a house in Stallarholmen, a town an hour’s drive from the city centre.


CHINA’S ANT GETS FINAL APPROVAL FOR WORLD’S BIGGEST-EVER IPO

FT - Hudson Lockett (2020-10-23)

China’s Ant Group has cleared the final hurdle for its $30bn initial public offering, after receiving approval from Hong Kong’s bourse ahead of what is set to be the world’s biggest-ever stock market debut. The city’s exchange gave the deal its public stamp of approval on Wednesday, setting off a whirlwind of preparations for the hotly anticipated dual listing in Hong Kong and Shanghai.


MARK CARNEY SAYS SMART MONEY NEEDS BETTER TOOLS TO MEASURE CLIMATE RISK

CBC - Don Pittis (2020-10-23)

But Carney says that is not enough. Governments and market regulators must make climate disclosure mandatory so that investors have a transparent view of the climate value and risk of any company as it follows its business plan.


HSBC INSTALLS CONTACTLESS POPPY BOXES ACROSS CANADIAN BRANCH NETWORK

Finextra - Finextra (2020-10-22)

The Pay Tribute Poppy Box enables HSBC customers to tap their card of phone against a glowing poppy motif to make a $2 donation and take a badge to pin to their lapel.


MASTERCARD INVESTS IN NO-CODE AI PLATFORM SIGNZY

Finextra - Finextra (2020-10-22)

"The decisions that used to need years to finalise are now being closed in just a quarter. We have worked hard to keep up with the growing demand."


INFLATION MOVES OFF FLOOR, BUT STILL A FAR CRY FROM NORMAL

G&M - DAVID PARKINSON (2020-10-22)

Any movement away from zero, and toward the central bank’s target range of 1 to 3 per cent, removes heat on the bank to add to the substantial monetary stimulus it already has in place, in the form of near-zero interest rates and its $5-billion-a-week purchases of government bonds. The central bank’s three measures for core inflation – designed to filter out temporary distortions (of which there are plenty in this crisis) – had an average reading of 1.7 per cent, which, all things considered, is not massively short of the bank’s central inflation target of 2 per cent.


LIFE INSURANCE INDUSTRY OPPOSES ONTARIO’S NEW REGULATIONS OF FINANCIAL ADVISER, PLANNER TITLES

G&M - Clare O'Hara (2020-10-22)

Canada’s life insurance industry is opposing a proposal by the Ontario government that would prevent people licensed to sell insurance from using the title “financial adviser” or “financial planner."


WHY IMMIGRATION WILL BE VITAL FOR CANADA'S ECONOMIC RECOVERY

FP - Larysa Harapyn (2020-10-22)

Scotiabank Senior Economist Marc Desormeaux speaks with the Financial Post’s Larysa Harapyn about Scotiabank’s provincial outlook report.


GOVERNMENT SPENDING IS BECOMING A PROBLEM AND PRINTING MONEY IS A DANGEROUS SOLUTION

FP - Martin Pelletier (2020-10-22)

That appears to be the case here in Canada, where the Liberal minority government — backstopped by the NDP — is looking to implement massive, costly programs including a national daycare system, pharmacare, affordable housing and green initiatives.


FINANCIAL INDUSTRY MUST EXPAND CAPITAL MARKETS ACCESS TO HELP CANADA TRANSITION TO LOW-CARBON ECONOMY: LAURENTIAN BANK

FP - Esteban Duarte (2020-10-22)

“These findings make it imperative for the financial sector to develop and expand capital market tools to foster the transition towards a low-carbon economy,” the analysts said in a report released Wednesday. “The introduction of ‘transition’ bond frameworks come to serve that purpose by allowing entities, usually operating in high-emission sectors such as transportation and oil & gas.”


THE RETIREMENT DOWNSIZING MYTH: NO, SENIORS AREN'T MOVING IN DROVES — AND THAT WILL AFFECT THE HOUSING MARKET

FP - Jason Heath (2020-10-22)

A recent survey by Ryerson’s National Institute on Ageing found that 91 per cent of respondents would try “to live safely and independently in their own home as long as possible.” The survey was conducted this summer, so the findings may be influenced by the impact of COVID-19 on retirement and nursing home residents.


EXCLUSIVE: HSBC TO CUT UP TO 300 JOBS IN UK COMMERCIAL BANKING OVERHAUL - SOURCE

Reuters - Lawrence White (2020-10-22)

HSBC has launched a restructuring of its commercial banking business in Britain, a source familiar with the matter told Reuters on Wednesday, resulting in around 300 job losses.


ANALYSIS: BIDEN TAX INCREASE MIGHT NOT BE SO BAD FOR BIG BANKS

Reuters - David Henry (2020-10-22)

Banks were big beneficiaries of tax cuts under President Donald Trump, making a reversal seem ominous. But a second look at what might happen if Biden were to win the election and Democrats were to win control of the U.S. Senate suggests the pain might not be so bad.


SUN LIFE BUYS MAJORITY STAKE IN ATTANASIO’S CRESCENT CAPITAL

Bloomberg - Eric Schatzker (2020-10-22)

Crescent, which is based in Los Angeles and manages about $28 billion, is a major player in senior loans, junk bonds, buyout financing and direct lending to private equity-backed companies. Co-founders Mark Attanasio and Jean-Marc Chapus will retain control of day-to-day operations for five years, at which point Sun Life may acquire the remaining 49%, according to a statement today. The talks were first reported by Bloomberg in August.


APARTMENT RENTS ARE PLUNGING IN THE WORLD'S RICHEST CITIES. IT'S TIME FOR YOU TO NEGOTIATE

Bloomberg - Emily Cadman and Charlie Wells (2020-10-22)


BOND INSURANCE RETURNS TO THE MUNI MARKET IN A BIG WAY

WSJ - Heather Gillers (2020-10-22)

The decimated municipal-bond insurance industry is having a renaissance. Weakened by Covid-19, state and local borrowers are using insurance at their highest rates in more than a decade.


U.K. REGULATOR URGES IMPROVED DISCLOSURE ON LIQUIDITY RISK, REVENUE

WSJ - Mark Maurer (2020-10-22)

In its annual review, the Financial Reporting Council found information wanting for 96 companies of the 216 it looked into.


GOLDMAN TO PAY $2.8 BILLION, ADMIT WRONGDOING TO SETTLE 1MDB CHARGES

WSJ - Dave Michaels, Liz Hoffman and Bradley Hope (2020-10-22)

Goldman Sachs Group will pay about $2.8 billion and admit wrongdoing to end a bribery probe that stretched from Southeast Asia to Hollywood and reinforced a reputation for scandal that the Wall Street firm has spent years trying to shed.


TOP CANADIAN HEDGE FUND RETURNS 16% OVER 10 YEARS

Investment Executive - IE (2020-10-22)

The top equity fund for the year ended June 30 was the Lynwood Opportunities Fund from Toronto-based Lynwood Capital Management Inc. The fund, which uses long/short and event-driven equity strategies, recorded a one-year return of 46.29%. It was the top equity fund in 2019, as well.


ALTERNA TO MERGE MEMBER SAVINGS CREDIT UNION

Investment Executive - Rudy Mezzatta (2020-10-22)

Ottawa-based Alterna Savings and Credit Union Ltd. and Toronto-based Member Savings Credit Union Ltd. have signed an agreement that will see Member Savings become part of Alterna at the end of 2020, the two Ontario-based financial cooperatives said on Wednesday.


RE/MAX TURNS BEARISH ON TORONTO CONDO PRICES, EXPECTS DECLINES SOON

Better Dwelling - Stephen Punwasi (2020-10-22)

RE/MAX is seeing condo inventory rise due to both flight to the suburbs and interest rates spurring more detached demand. The firm cites a decline in short-term rentals, like AirBnB, collapsing as one reason. This has resulted in even more condo owners looking to sell or rent to long-term tenants. Massive amounts of building across the city further complicates this trend, with the firm warning “thousands more to come once new construction is completed over the next two to three years.” Further adding, “…condo prices, as well as rents, are expected to decline in the coming months.”


WHY BROKERS ARE GOING TO GET SUED OVER PANDEMIC BUSINESS INTERRUPTION CLAIMS

Canadian Underwriter - Greg Mechbach (2020-10-22)

“The main area of claim will be failure to advise of potential risks regarding pandemic, and failure to advise how business interruption coverage actually works in their policy,” said Laurie LaPalme, partner with the insurance and reinsurance group at Cassels Brock & Blackwell LLP, during the keynote sessions of IBAO’s annual convention, which is taking place virtually this week.


TRUDEAU GOVERNMENT SHOULD HEED LOOMING RISKS TO FEDERAL FINANCES

G&M - JASON CLEMENS AND MILAGROS PALACIOS (2020-10-22)

The federal government and several prominent economists have played down the near-term risks to federal finances. Some have actually characterized Ottawa’s financial position as basically “sound.” Such analyses are premised on questionable assumptions and ignore the country’s past experiences with perennial deficits.


CANADA RANKED IN WORLD’S TOP 10 PENSION SYSTEMS

FP - Yadullah Hussain (2020-10-22)

The pandemic has rocked government finances across the world and led to questions about the financial durability of pension funds. But a new ranking by Mercer and the CFA Institute puts the Canada Pension Plan in the top 10. There is always room for improvement, however.


CANADIANS ARE BEING SOLD THE WRONG LIFE INSURANCE, BROKERAGE SAYS

FP - Juliette Baxter (2020-10-22)

“Permanent life insurance is a very specialized product that only meets the needs of a very small percentage of the population. Most people are sufficiently covered with the more flexible and affordable term life insurance,” says Andrew Ostro, the brokerage’s CEO and co-founder.


HOW THE PANDEMIC HAS CHANGED MONTREAL REAL ESTATE

FP - Briana Doyle (2020-10-22)

Selling your home in the middle of a pandemic may seem stressful, but the thought of going through a long winter lockdown in a home you’re unhappy in can feel unbearable. When you can go from long lunches on pop-up terrasses to living in lockdown in the space of a few days, it’s clear: there’s no time like now to do the things you dream of.


BREAKINGVIEWS - GOLDMAN’S CLAWBACK IS SMALL BUT POINTY

Reuters - John Foley (2020-10-22)

Goldman last year tweaked some awards granted almost a decade ago so it could hold back payments depending on how the Malaysian 1MDB saga panned out. The recipients include Chief Executive David Solomon’s predecessor Lloyd Blankfein. Another who has already cashed out is former Chief Operating Officer Gary Cohn. Goldman says it is in talks to recover past payments to a retired executive – that’s Cohn, according to the Wall Street Journal.


MUTUAL FUND SALES TURN NEGATIVE BUT ETFS ROLL ON: IFIC

Investment Executive - James Langton (2020-10-22)

ETFs continued to rack up positive net sales in September even as mutual funds returned to net redemptions, according to new data from the Investment Funds Institute of Canada (IFIC).


WHISTLEBLOWER, REPORTER RECEIVE ANTI-CORRUPTION PRIZE

Investment Executive - James Langton (2020-10-22)

The $100,000 award, which was established in 2012 and is funded by Vancouver lawyer, Peter Allard, recognizes efforts to promote human rights or fight corruption.


U.K. GOVERNMENT BORROWING HITS RECORD

Investment Executive - AP (2020-10-22)

The government borrowed a net 36.1 billion pounds (US$47.1 billion) in September, pushing the total for the first six months of the year to 208.5 billion pounds, the Office for National Statistics (ONS) said Wednesday. That’s the highest figure since records began in 1993.


FIRST CREDIT UNION AND UNION BAY CREDIT UNION ANNOUNCE PROPOSED MERGER

Shared Vision - Press Release (2020-10-22)

Operating as First Credit Union, the merged entity will have over $600 million in assets and serve a combined membership of more than 15,500. As there is no geographical overlap, the intent is that all eight branches of the combined organization will continue to operate. 


CRA LAUNCHES AUDITS ON SELECT SMALL BUSINESSES THAT TOOK A PANDEMIC WAGE SUBSIDY

G&M - Bill Curry (2020-10-20)

Some small business owners that received the federal wage subsidy are now facing midyear audits, prompting a major organization representing independent businesses to formally urge the Canada Revenue Agency to shelve the audits until the pandemic eases.


TWO TOP MORGAN STANLEY COMMODITIES TRADERS LOSE JOBS OVER USE OF WHATSAPP

FT - Laura Noonan (2020-10-20)

Morgan Stanley’s two most senior commodities traders have lost their jobs for using WhatsApp and other unauthorised messaging platforms, reflecting Wall Street’s continued clampdown on communications channels that it cannot monitor.


DOES A DIGITAL EURO CHALLENGE THE DOLLAR’S GLOBAL DOMINANCE?

FT - Claire Jones (2020-10-20)

A European Central Bank research paper on the feasibility of the digital euro has garnered a lot of attention over the past couple of weeks.


INVESTORS BET US RECOVERY WILL FORCE LONG-TERM BOND YIELDS HIGHER

FT - Laurence Fletcher, Eric Platt and Colby Smith (2020-10-20)

US government bond prices are about to fall, anticipating that a Democratic win at next month’s US election and progress against Covid-19 could dent the haven assets.


CANADIAN HOME EQUITY BORROWING GRINDS TO A SUDDEN HALT

Better Dwelling - Daniel Wong (2020-10-20)

The total balance of loans secured by real estate inched higher for a third month, but remains below the peak. The balance outstanding was $305.17 billion in August, virtually flat from the month before with a 0.04% increase. Compared to the same month last year, this represents a 0.58% increase. That’s the lowest rate of annual growth since 2016, and it’s due almost entirely to personal loans drying up. 


PANDEMIC PUTS PRESSURE ON GLOBAL PENSIONS

Investment Executive - Mark Burgess (2020-10-20)

The combination of low interest rates, a pandemic-ravaged global economy and reduced investment returns are straining pension systems, according to an annual survey.


SOME LONG-TERM CARE HOMES CAN’T GET INSURANCE, COULD BE FORCED TO CLOSE: ASSOCIATION

Canadian Underwriter - Liam Casey (2020-10-20)

Ontario’s long-term care homes are having trouble securing liability insurance for COVID-19, a situation that could force some of them to close, a group representing more than 70 per cent of the province’s homes says.


BOAZ MANOR, BUSINESS PARTNER INDICTED ON FRAUD CHARGES IN U.S. OVER BLOCKCHAIN VENTURE

FP - Barbara Shecter (2020-10-20)

Boaz Manor, a former Canadian hedge fund manager who served jail time following the collapse of Portus Alternative Asset Management Inc. in 2005, was indicted Friday on fresh criminal charges in the United States in connection with an alleged securities fraud scheme at an entirely different venture: a New York-based blockchain technology startup.


GOVERNMENT SPENDING PLANS WOULD PUSH FEDERAL DEBT BURDEN BACK TO 1990S LEVELS, DRUMMOND WARNS

G&M - Patrick Brethour (2020-10-20)

The Liberal government’s expansive spending plans would push the federal debt burden back to the dangerous levels of the 1990s over the next decade, according to a report from one of the architects of Ottawa’s successful effort to defuse Canada’s debt crisis a quarter century ago.


INVESTORS FLEE BROOKFIELD’S NEW INSURANCE PARTNER AS TAKEOVER IS THWARTED

G&M - David Milstead (2020-10-20)

Brookfield Asset Management Inc.’s big deal to boost its insurance efforts was met with an underwhelming reception from its partner’s investors, who sent its shares tumbling.


LIBERALS THREATEN ELECTION IF PROPOSED ‘ANTI-CORRUPTION’ COMMITTEE IS DEBATED

G&M - MARIEKE WALSH, PAUL WALDIE (2020-10-20)

The Liberals are threatening opposition parties with an election if the Conservatives move ahead Tuesday with their attempt to create a special “anti-corruption” committee in the House of Commons.


VC INDUSTRY WARNS OF ‘SEVERELY WEAKENED’ INNOVATION SECTOR IF OTTAWA DOESN’T BACK TECH STARTUPS

G&M - Sean Silcoff, Mark Rendell (2020-10-20)

Canada’s venture-capital industry is warning the federal government of dire consequences for the innovation sector unless Ottawa commits fresh funds to back technology startups.


COVID-19: ALMOST A THIRD OF SMES FEAR THEY WON'T SURVIVE A SECOND WAVE

Insurance Portal - IIJ (2020-10-20)

Thirty-one per cent of small- and medium-sized business owners or decision-makers are concerned that they won’t have the capital to make it through a second wave of COVID-19 if the economy craters, found a recent survey KPMG in Canada released Oct. 19.


THE PANDEMIC MAY CHANGE THE FACE OF REAL ESTATE AS WE NOW KNOW IT

Insurance-Portal.ca - IIJ (2020-10-20)

COVID-19 has also accelerated the move to e-commerce, paving the way to increased warehousing space. Survey respondents indicate that malls with excess land need to be changed into residential or mixed-use properties. Some of that space can also be used for warehousing, distribution or fulfillment—including last-mile delivery—to satisfy the growing demand for online shopping. Grocery-anchored strip malls will fare best, as grocers have seen record sales during the pandemic.


NEW REAL-TIME HONG KONG DOLLAR CLEARING SYSTEM HANDLED ALMOST HK$10 BLN ON FIRST DAY

MacauBusiness - Nelson Moura (2020-10-20)

The Monetary Authority of Macau (AMCM) announced today (Tuesday) that the new Hong Kong Dollars Clearing House Automated Transfer System – a real-time gross settlement system launched on October 19 – cleared some HK$9.4 billion (US$1.1 billion) in its first day of operations, with about 28 banks joining the system.


U.S. JUSTICE DEPARTMENT FILES LANDMARK ANTITRUST CASE AGAINST GOOGLE

G&M - MICHAEL BALSAMO AND MARCY GORDON (2020-10-20)

The Justice Department on Tuesday sued Google for antitrust violations, alleging that it abused its dominance in online search and advertising to stifle competition and harm consumers.


LAURENTIAN NAMES RANIA LLEWELLYN AS ITS NEXT CEO; FIRST WOMAN TO HEAD MAJOR CANADIAN BANK

G&M - James Bradshaw (2020-10-20)

Laurentian Bank of Canada has chosen Rania Llewellyn as its next chief executive officer, making her the first woman to lead a major Canadian-based bank.


TRUDEAU DARES OPPOSITION TO FIGHT ELECTION AMID SECOND COVID WAVE

Bloomberg - Kait Bolongaro (2020-10-20)

Justin Trudeau warned opposition lawmakers they will trigger an election in Canada if they approve the creation of an “anti-corruption” committee.


ROSS MCDONALD JOINS COMMUNITY SAVINGS AS CHIEF FINANCIAL OFFICER & CHIEF RISK OFFICER

Community Savings - Staff (2020-10-20)

“We are so excited to welcome Ross to the growing Community Savings team. Ross brings a unique skill set within the credit union system and is going to prove a great fit for our team here. Ross’ leadership strengths, experience and critical thinking will position us as one of the leading credit unions in BC for many years to come.” Mike Schilling, CEO.


ALTICE, ROGERS INCREASE BID FOR COGECO TO $11.1-BILLION

G&M - Andrew Willis, James Bradshaw (2020-10-19)

Altice USA Inc. and Rogers Communications Inc. sweetened their bid to acquire Cogeco Inc. and Cogeco Communications Inc. to $11.1-billion, while setting a time limit on their offer for the family controlled companies.


CPPIB EMERGES WITH A JEWEL FROM THE NEIMAN MARCUS BANKRUPTCY

G&M - David Milstead (2020-10-19)

Normally, stockholders in a bankrupt company get wiped out. But the Canada Pension Plan Investment Board and its partners in U.S. department store Neiman Marcus Group LLC have emerged from the retailer’s hard-fought bankruptcy process with a possible jewel.


INFLATION NUMBERS REALLY ARE BEING DISTORTED BY COVID-19 SPENDING, NEW RESEARCH SHOWS SOCIAL SHARING

CBC - Don Pittis (2020-10-19)

New research by two of Canada's most credible analytic agencies appears to prove that critics — who have complained that inflation data has been distorted by COVID-19 both here and in the U.S. — actually got it right.


BANK OF CANADA PHASING OUT 3 PROGRAMS SET UP IN EARLY DAYS OF COVID-19 TO PROVIDE EMERGENCY LIQUIDITY

CBC - CBC (2020-10-19)

The mortgage bond program accomplished this by having the central bank buy up billions of dollars worth of insured mortgages from lenders and move them on to its balance sheet, which makes it easier for lenders to go out and lend money to someone else.


THE PROBLEM WITH CANADA'S MONETARY POLICY REGIME

FP - Kevin Carmichael (2020-10-19)

The Bank of Canada’s mandate is up for renewal next year, and this time will be different. The central bank has set a new standard for how an arm’s length Crown corporation should engage with the people it ultimately serves.


ECB'S DE GUINDOS SAYS MERGERS CAN IMPROVE BANKS' PROFITABILITY

Reuters - Jesús Aguado, Emma Pinedo (2020-10-19)

Last month's deal between Caixabank CABK.MC and Bankia BKIA.MC to create Spain's largest domestic bank boosted expectations of a new wave of mergers and acquisitions among Spanish banks. Their numbers have already fallen to 12 from 55 after the 2008 financial crisis.


BARCLAYS, STAVELEY SPAR IN FINAL LAP OF LONDON TRIAL

Reuters - Kirstin Ridley (2020-10-19)

Staveley’s PCP Capital Partners, which led a 3.25 billion pound ($4.2 billion), Abu Dhabi-backed investment, alleges it was induced to fund Barclays on much worse terms than Qatar -- despite assurances it would get the same deal.


CHINA’S ECONOMY PLOWS ON AS WORLD’S ONLY MAJOR GROWTH ENGINE

Bloomberg - Bloomberg News (2020-10-19)

Gross domestic product expanded 4.9% in the third quarter from a year ago, missing economists’ forecast for a 5.5% expansion. Both retail sales and industrial production gained momentum in September, reassuring markets that the recovery is on track.


TRUDEAU IS PREPARING TO TEST LIMITS OF DEBT-FINANCED SPENDING

Bloomberg - Kait Bolongaro and Theophilos Argitis (2020-10-19)

Justin Trudeau’s Covid-19 support programs gave Canada one of the world’s largest budget deficits, and now the prime minister is ready to test public appetite for more red ink.


FED, CENTRAL BANKS WILL FIND EXIT FROM MASSIVE STIMULUS IMPEDED

Bloomberg - Rich Miller (2020-10-19)

The Federal Reserve and other central banks will eventually discover that breaking up isn’t easy after partnering with their governments and the financial markets to avert a pandemic-driven depression.


FOREIGN INVESTORS RETURNED IN AUGUST: STATSCAN

Investment Executive - James Langton (2020-10-19)

The national statistical agency said that international securities transactions generated a net inflow of $9.8 billion in August, pushing aggregate inflows through the first eight months of the year to $112.6 billion.


U.S. BANK PROFITS HOLD UP, BUT RISKS REMAIN: FITCH

Investment Executive - James Langton (2020-10-19)

The big Wall Street banks are reporting healthy third-quarter profits thanks to heightened market volatility and strong investment banking activity, but the sector’s outlook remains negative amid continued uncertainty, says Fitch Ratings.


COMPENSATION DURING COVID: BROKER PRINCIPALS REVEAL THEIR FAVOURITE WAY TO PAY PRODUCERS

Canadian Underwriter - David Gambrill (2020-10-19)

In the dog-eat-dog world of trying to generate sales during a global pandemic, brokerage principals are increasingly turning to performance-based compensation to help improve the performance of their brokers, according to Canadian Underwriter’s 2020 National Broker Survey.


YOUR LIST OF BUSINESS CLIENTS IS AT RISK OF SHRINKING: CPA CANADA CHIEF ECONOMIST

Canadian Underwriter - Adam Malik (2020-10-19)

The Canadian Federation of Independent Business, which represents small and medium-sized businesses, has been regularly highlighting commercial struggles as the pandemic More than half (56%) of its members recently said they will not easily survive a second wave of shutdowns, the group recently reported. Earlier, the CFIB said it would take a year-and-a-half on average for small business activity to normalize.


WATCH FOR GOVERNMENTS TO TRANSFER FINANCIAL RISK FROM NATURAL DISASTERS TO INSURERS: SWISS RE

Canadian Underwriter - Greg Meckbach (2020-10-19)

About 70% of economic losses from natural catastrophes around world are uninsured, Meier said Oct. 14 during Risks and Opportunities for the Capital Markets, a panel held during a virtual webinar hosted by CatIQ. Uninsured losses are growing faster than insured portion, Meier said.


THE DIGITAL CURRENCY ARMS RACE: CENTRAL BANKS ENTER THE FRAY TO PROTECT NATIONAL SOVEREIGNTY

G&M - Barry R Campbell (2020-10-19)

A group of seven central banks, including Canada’s, have issued a statement indicating they are working together on common principles and key features for a viable central bank digital currency, or CBDC.


BANK OF CANADA SURVEYS SUGGEST UNEVEN COVID-19 RECOVERY, EVEN BEFORE SECOND WAVE

G&M - DAVID PARKINSON (2020-10-19)

Meanwhile, the Canadian Survey of Consumer Expectations showed that consumers' views brightened with the gradual easing of COVID-19 containment restrictions over the summer, but they remained “cautious” about the course of the pandemic, and about employment, income and spending prospects. They reported stepping up their savings, as a precaution against further economic difficulties.


JAPAN TO JOIN FORCES WITH U.S. AND EUROPE IN REGULATING BIG TECH FIRMS

G&M - LEIKA KIHARA AND TAKAHIKO WADA (2020-10-19)

Japan will join forces with the United States and Europe to take on any market abuses by the four Big Tech companies, the new head of its antitrust watchdog said on Monday, a sign Tokyo will join global efforts to regulate digital platform operators.


ANT GROUP WINS APPROVAL FROM CHINESE REGULATORS FOR THE HONG KONG LEG OF ITS BLOCKBUSTER IPO

CNBC - Arjun Kharpal (2020-10-19)

The financial technology giant, which is 33% owned by Alibaba and controlled by billionaire Jack Ma, is seeking to list in Shanghai and Hong Kong in a concurrent IPO.


DOLLAR GREEN BOND APPEAL GROWS AS CIBC CLAIMS PRICE ADVANTAGE

Bloomberg - Estaban Duarte (2020-10-19)

Canadian Imperial Bank of Commerce’s inaugural green bond transaction Monday is providing fresh evidence that North American issuers can squeeze a price advantage out of sustainable debt, a longer standing feat in the euro market.


SLOWDOWN IN CORPORATE BOND ISSUANCE COULD BOOST INVESTMENT-GRADE DEBT

WSJ - PAUL J. DAVIES (2020-10-19)

Companies have pulled back from the frenetic pace of corporate-bond issuance earlier this year, and that could support further gains for high-grade debt investors.


MONETARY POLICY: WHAT DOES THE FUTURE HOLD

Investment Executive - Alizee Calza (2020-10-19)

Every five years, the Bank of Canada renews its agreement on the country’s inflation-control target. The BoC is due to announce its new framework in 2021, and this time around, it has asked Canadians for their opinions.


BANK OF CANADA STEPS UP FINANCIAL BENCHMARK OVERSIGHT

Investment Executive - James Langton (2020-10-19)

In a release, the bank said that while new risk-free rates (such as CORRA) are expected to become the primary financial benchmarks around the world, they are not necessarily ideal for all products, “so having robust credit-sensitive benchmarks may also be desirable,” it said.


OSFI REVIEWING ITS ANTI-MONEY LAUNDERING RULES

Investment Executive - James Langton (2020-10-19)

OSFI said this new approach to AML supervision reflects an effort to “eliminate duplication” and reduce the regulatory burden.


RBC JUST FORECASTED MORTGAGE DEFAULTS MAY BE HIGHER THAN IF THE BOC DID NOTHING

Better Dwelling - Stephen Punwasi (2020-10-19)

RBC sent a research note to institutional clients that mentions upcoming mortgage defaults. In the research note, they state “we believe 10% to 20% of mortgages under deferral are at a higher risk of defaulting.” Further adding, “if 20% of mortgages under deferral eventually become delinquent in Canada, this equates to a mortgage delinquency rate of 2.3% which is almost 4 times higher than the peak Canadian mortgage delinquency rate over the past 30 years.” Even at that rate, it’s still relatively low in the grand scheme of things. However, as the analysts note, it’s higher than Canada has seen in recent history.


US 2020 ELECTION: THE ECONOMY UNDER TRUMP IN SIX CHARTS

BBC - BBC (2020-10-19)

Reality Check verdict: It's true the economy was doing well prior to the pandemic - continuing a trend which began during the Obama administration - but there have been periods when it was much stronger.


VISA AND MASTERCARD ACCUSED OF CHARGING 'EXCESSIVE FEES'

BBC - BBC (2020-10-19)

"It is vital that the government takes action to tackle excessive card costs," said the BRC's Andrew Cregan.


ALIBABA INCREASES STRANGLEHOLD ON CHINESE SHOPPERS

BBC - BBC (2020-10-19)

The tech titan is looking to boost its offline shopping services and gain further ground in China's booming retail market.


LANDLORDS IN B.C., QUEBEC, FLORIDA TAKE HBC TO COURT FOR UNPAID RENT

G&M - RACHELLE YOUNGLAI SUSAN KRASHINSKY ROBERTSON (2020-10-16)

The legal proceedings are occurring as pandemic measures stretch into their eighth month and COVID-19 cases soar in Ontario and Quebec. Indoor activity is restricted and the economic slowdown is hurting retailers and their landlords.


BANK OF CANADA UNWINDS THREE EMERGENCY SUPPORT PROGRAMS

G&M - DAVID PARKINSON (2020-10-16)

The Bank of Canada is discontinuing its programs to purchase bankers' acceptances and Canada mortgage bonds, and reducing its term repo operations, as the central bank further scales back its emergency measures put in place last spring to stabilize financial markets at the height of the COVID-19 crisis.


CANADA’S SEPTEMBER HOME SALES SET RECORD, SOARING 45.6% FROM LAST YEAR

G&M - CP (2020-10-16)

Canadian homes sales set a monthly record in September and the national average price soared 17.5 per cent from last year, the Canadian Real Estate Association said Thursday.


AVERAGE CANADIAN HOUSE PRICE CONTINUES TO DEFY EXPECTATIONS, UP 17% IN PAST YEAR

CBC - Pete Evans (2020-10-16)

CREA said its average price is not the best gauge of the market because it is easily skewed by sales of expensive homes in Toronto and Vancouver. The group said if those two cities are stripped out, the average Canadian home sold last month went for $479,000. But that figure has risen by even more than the overall average, up by more that 20 per cent in the past year.


ALMOST 2,000 ROBINHOOD ACCOUNTS INFILTRATED IN RECENT HACKING SPREE

FP - Sophie Alexander (2020-10-16)

Almost 2,000 Robinhood Markets accounts were compromised in a recent hacking spree that siphoned off customer funds, a sign that the attacks were more widespread than was previously known.


MORGAN STANLEY PROFIT CRUSHES ESTIMATES ON TRADING STRENGTH

Reuters - Matt Scuffham, Ambar Warrick (2020-10-16)

Like fellow Wall Street trading powerhouse Goldman Sachs, Morgan Stanley capitalized on a flurry of activity in financial markets. Clients bought and sold securities in response to the coronavirus pandemic, and many companies went public or raised fresh capital.


BANK OF CANADA BECOMING ‘ATM FOR TRUDEAU,’ CONSERVATIVES CAUTION

Bloomberg - Theophilos Argitis and Kait Bolongaro (2020-10-16)

Canada’s main opposition party is cautioning the central bank against financing Justin Trudeau’s spending plans beyond immediate pandemic emergency measures, thrusting the Bank of Canada into a political firestorm.


TOP WORLD BANK ECONOMIST SAYS FINANCIAL CRISIS COULD EMERGE FROM PANDEMIC

Bloomberg - Michael Heath and Kathleen Hays (2020-10-16)

“This did not start as a financial crisis but it is morphing into a major economic crisis, with very serious financial consequences,” Reinhart said in an interview with Bloomberg Television. “There’s a long road ahead.”


MFDA PANEL FINES, BANS REP FOR SYNDICATED MORTGAGE MISCONDUCT

Investment Executive - James Langton (2020-10-16)

Among other things, the panel found that Li sold at least $2.2 million in syndicated mortgages to clients, generating $173,500 in fees from the unauthorized activity. The clients’ money was largely lost, the MFDA said.


CANADIAN REAL ESTATE SALES SOAR, AS SHIFTED COMPARISON PERIOD CONTINUES

Better Dwelling - Daniel Wong (2020-10-16)

Canadian real estate sales set a new record for the month. On a seasonally adjusted basis, there were 56,422 homes sold in September, up 0.9% from the month before. Unadjusted the number comes in at 61,308 sales, up 46.6% from the same month last year. This is the most sales for any September on record, according to CREA. The seasonal shift that was expected, is a little more obvious after viewing an overlay of year


IPSOS AWARDS TOP HONOURS FOR FINANCIAL SERVICES EXCELLENCE IN CANADA

IPSOS - IPSOS (2020-10-16)

Virtual banks, such as Tangerine and Simplii Financial have also benefited from the current climate, with Tangerine taking the honour of most recommended financial institution and Simplii sharing in four awards, including Value for Money and mobile and online banking excellence.


BANKS BRACE FOR ‘BIG BANG’ SWITCH ON $80 TRILLION WORTH OF SWAPS

Bloomberg - William Shaw, Liz McCormick, and Tasos Vossos (2020-10-16)

It’s being called the “big bang,” and it has derivatives traders on high alert.


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END OF AN ERA AS POLOZ EXITS BANK OF CANADA

G&M - DAVID PARKINSON (2021-06-01)

Stephen Poloz had only been Governor of the Bank of Canada for a few months in the late summer of 2013, when he gave a speech that defined his unique communication style and signalled a new era for a traditionally staid institution.


UBS WEALTH BANKERS GET DOSE OF CREDIT SUISSE TONIC IN KHAN PLA

Bloomberg - Patrick Winters and Marion Halftermeyer (2020-12-17)

Colleagues say the Pakistan-born executive is enthusiastic, energetic and talented. Former associates have described him as confident, even overly so. That said, he knows the business from several angles: Khan was a UBS auditor at Ernst & Young and a key competitor at Credit Suisse.


B.C. ECONOMIC BRIEFING

Central 1 - Central 1 (2020-12-08)

The unemployment rate edged lower to 10.7 per cent from 11.1 per cent in July as labour force participation edged up. Metro Vancouver’s rate came in at 12.4 per cent.


HOW CAN INSURANCE BROKERS USE RATE COMPARISON SITES TO BOOST THEIR BOOKS OF BUSINESS?

Insurance Business - Bethan Moorcraft (2020-12-07)

Enter, rate comparison websites. They’re all the rage in the UK and the USA, where consumers use comparison sites to shop for insurance much like Canadians do when comparing travel costs on sites like Expedia and Trivago. But Canadians are slowly starting to catch on to the insurance comparison trend. They’re searching for and finding platforms like LowestRates.ca, which is enabling consumers to compare insurance premium prices across a number of product lines, primarily in auto and home insurance.


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FEDERAL GOVERNMENT RELEASES MORE DETAILS OF FIVE-YEAR HOUSING INITIATIVE

The first round, dubbed the Data Driven phase, will attempt to address gaps in housing data “through technology or methodology-based solutions to improve data collection, sharing, analysis and integration, thus improving decision-making on housing supply,” the Canada Mortgage and Housing Corporation said late last week.


FALLING HOME PRICES, UNEMPLOYMENT TO UPSET BANKS' BALANCE SHEETS – ANALYST

With the looming threat of major home-price drops, a housing market correction accompanied by mounting unemployment will likely take a significant chunk off Canadian banks’ bottom lines, according to Barclays Plc. analyst John Aiken.


MASTERCARD TAPS AI TO HELP BANKS FIGHT OFF CYBER RISKS

Drawing on the capabilities of RiskRecon, which Mastercard acquired earlier this year, the Cyber Secure suite's AI combines multiple public and proprietary data sources.



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