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'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.


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


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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

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.


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.


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.


CHRISTINE LAGARDE GETS A HEAVY POINTER ON HER ECB REVIEW

Bloomberg - Ferdinando Giugliano (2020-06-20)

Nevertheless, Lagarde and her colleagues would be wise to read the staff paper closely. Among all the carefully worded language, one can clearly see the contours of a monetary framework that would work for the ECB’s third decade. These include changing the inflation target to 2%, and maintaining all of the instruments — asset purchases, long-term loans to the banking system and negative interest rates — that the central bank used throughout the presidency of Lagarde’s predecessor, Mario Draghi. 

The argument for a symmetric inflation target is rooted in the power of expectations. The ECB at the moment aims to reach an inflation rate “close to but below 2%.” This means that, as price pressures start climbing toward 2%, investors and consumers expect the ECB to react aggressively, tightening monetary policy to push inflation back. The authors believe this served the ECB well during its first decade, when it had to establish its reputation and fight off inflationary forces. However, the objective has been less useful in today’s era of persistently low inflation. It may even be counterproductive. Consumers and investors don’t expect the central bank to act so decisively to counter deflation.  


TRAVEL INSURERS EXCLUDE CLAIMS RELATED TO CORONAVIRUS FOR FLIGHTS ABROAD

G&M - Clare O'Hara (2020-06-01)

Canadian travellers may be unwilling to leave the country even as international travel is resuming because most major travel insurers say they are continuing to exclude COVID-19 from their out-of-country medical coverage until the risks become clearer.


CHANGING OF THE GUARD AT BANK OF CANADA ADDS TO COVID-19 UNCERTAINTY: DON PITTIS

CBC - Don Pittis (2020-06-01)

But just as when Poloz replaced media darling Mark Carney, who set off to an even more glamorous and demanding job at the Bank of England only to be replaced by a relatively stodgy and unknown replacement, changes of leadership style at the top matter.


COVID-19 HAS CANADA'S BANKS WORRIED ABOUT SICKLY LOANS, BUT THEY'RE STILL RAKING IN THE CASH

CBC - Pete Eves (2020-06-01)

Canada's 5 biggest banks took in nearly $5B in profit last quarter, but set aside twice that for bad loans


CANADA'S ECONOMY SHRANK AT 8% PACE IN THE FIRST THREE MONTHS OF 2020, WORST SINCE 2009 SOCIAL SHARING

CBC - Pete Evans (2020-06-01)

Statistics Canada reported Friday that the slowdown was the sharpest quarterly drop since the financial crisis of 2009, as measures to contain the pandemic such as school and business closures, border shutdowns and travel restrictions brought economic activity grinding to a halt. 


LAURENTIAN BANK CUTS DIVIDEND BY 40%

CBC - CBC (2020-06-01)

The Montreal-based lender said Friday its profit fell by 79 per cent to $8.9 million, and its provisions for credit losses — the amount of money the bank is setting aside to cover loans that may go bad — soared to $54.9 million. That's up from $9 million in the same period a year ago.


BIG SIX BANKS HAVE OFFERED DEFERRALS ON MORE THAN $180 BILLION IN MORTGAGES SO FAR

FP - Geoff Zachodine (2020-06-01)

“At the outset of this pandemic, it was clear to us, based on the inbound calls and based on the economics that we saw out there, that clients were feeling anxiety and hardship,” Canadian Imperial Bank of Commerce chief executive Victor Dodig said on a conference call Thursday morning. “Some was real financial hardship, some was perceived financial hardship, and we wanted to deal with them as expeditiously as possible.”


SAUDI CENTRAL BANK PROVIDES $13.3 BLN TO SUPPORT BANK LIQUIDITY

Reuters - Reuters (2020-06-01)

“April SAMA data offers the first indication of the magnitude of the curfew with consumer spending tumbling 35% y/y despite 2x surge in food spending on Ramadan season and household stocking,” Arqaam Capital said in a research note.


CITIGROUP'S MASON EXPRESSES HORROR OVER MINNEAPOLIS KILLING

Reuters - Reuters (2020-06-01)

Citigroup Inc Chief Financial Officer Mark Mason, one of the few black executives on Wall Street, published a personal essay on Friday expressing his “horror, disgust and anger” over the killing of George Floyd, an unarmed black man who died after a Minneapolis police officer knelt on his neck.


WELLS FARGO REVEALS NEW RISK MANAGEMENT STRUCTURE

Reuters - Reuters (2020-06-01)

The bank has had to contend with a federal investigation, a dozen consent orders and an unprecedented Federal Reserve cap on its balance sheet growth as the fallout of a 2016 sales practices scandal.


TORONTO’S UNDERGROUND CITY FACES BLEAK FUTURE WITH BANKERS MIA

Bloomberg - Steven Frank, Sandra Mergulhao, and Doug Alexander (2020-06-01)

To get an idea of the long recovery ahead for Toronto’s financial district, take a walk through the vast subterranean pathways that connect the city’s skyscrapers.

   


LAURENTIAN PLUNGES AFTER RARE DIVIDEND CUT FOR CANADIAN BANK

Bloomberg - Doug Alexander (2020-06-01)

The Montreal-based regional bank chopped its dividend by 27 Canadian cents to 40 cents, a 40% reduction. The move came as Laurentian posted fiscal second-quarter results Friday that missed analysts’ estimates, the result of higher provisions for loan losses to brace for the financial impacts of the coronavirus pandemic.


IMMIGRATION DROPS SHARPLY IN ANOTHER VIRUS HIT TO CANADA

Bloomberg - Kait Bolongaro and Shelly Hagan (2020-06-01)

In the first release of data that covers the pandemic’s spread into Canada, the number of permanent residents who came to the country in March dropped by 29% from the same period last year, falling to 19,115 during the month. Temporary foreign workers were down 35% to 5,635, while international student visas plunged 45% to 11,130, according to the immigration department.


BIG BANKS BRACE FOR HIGHER LOAN LOSSES IN ENERGY SECTOR AMID OIL SLUMP

G&M - Mark Rendell (2020-06-01)

Canada’s large banks are bracing for major losses on energy-sector loans over the coming quarters, as producers and oil field service companies continue to struggle with low oil prices.


PARAMOUNT INVESTORS FACED BIG LOSSES AFTER BEING PROMISED MONEY WAS SECURE, OSC HEARS

G&M - Greg Mcarthur (2020-06-01)

A few months after the Ontario Securities Commission ordered a receiver to take control of Paramount Equity Financial Corp., which sold pooled mortgage products, the company’s chief executive officer, Marc Ruttenberg, asked one of his largest investors for an unsettling favour.


OIL RESCUES WORLD’S BIGGEST INVESTMENT BANKS’ COMMODITIES PROFITS AS GOLD INCOME TUMBLES

G&M - Peter Hobson (2020-06-01)

The world’s 12 biggest investment banks cashed in on commodity price volatility caused by the coronavirus in the first quarter, with big increases in income from oil offsetting a tumble in precious metals, consultancy Coalition said.


BOMBARDIER EXITS COMMERCIAL JET SECTOR WITH CLOSURE OF $550-MILLION CRJ DEAL

G&M - Christopher Reynolds (2020-06-01)

Bombardier Inc. has completed the sale of its regional jet business to Mitsubishi Heavy Industries Ltd. for US$550 million, cementing the plane maker’s departure from commercial aviation following a three-decade run.


LINDA SEYMOUR NAMED NEW PRESIDENT AND CHIEF EXECUTIVE OF HSBC CANADA

G&M - CP (2020-06-01)

HSBC Bank Canada says Linda Seymour has been appointed as the lender’s president and chief executive, effective Sept. 1.


TD BANK CHARGES $30,000 MORTGAGE PENALTY TO WOMAN FORCED TO SELL HOME DUE TO PANDEMI

CBC - Erica Johnson (2020-06-01)

When the pandemic hit Ontario, Kristina Barybina's income as a real estate agent dried up and she knew the writing was on the wall — she'd have to sell her own house.


'THEY CAN’T DRAW ANY CASH ON THE LINE': ATHABASCA OIL EYES SUPPORT FROM OTTAWA AFTER BANKS SLASH CREDIT FACILITY BY 65%

FP - Geoffrey Morgan (2020-06-01)

Athabasca’s banking syndicate reduced its credit facility to $42 million after a review, which represents a 65 per cent cut from $120 million previously, the company said.


BANKS' TENFOLD JUMP IN ENERGY LOAN PROVISIONS COULD CAP FUTURE PAIN, ANALYSTS SAY

FP - Nichola Siminather (2020-06-01)

Canadian banks’ exposure to the beleaguered energy industry contributed to plunging profits in the second quarter, but investors said that as oil prices recover, the tenfold boost in loan-loss provisions lenders made from a year earlier may be enough to absorb any losses.


WESTERN UNION MAKES AN OFFER TO BUY MONEYGRAM

Bloomberg - Ed Hammond and Jennifer Surane (2020-06-01)

Western Union Co. is seeking to acquire MoneyGram International Inc. in a transaction that would bring together two of the largest U.S. providers of money-transfer services, according to a person familiar with the matter.


CHINA’S DIGITAL CURRENCY COULD CHALLENGE BITCOIN AND EVEN THE DOLLAR

Bloomberg - Bloomberg (2020-06-01)

People in China are no strangers to digital payments—if anything, it’s easier to move around and shop in Shanghai or Beijing with an Alipay or WeChat Pay smartphone app than it is bearing a pocketbook filled with yuan notes. Now the Chinese government has begun a pilot program for an official digital version of its currency—with the likelihood of a bigger test at the Beijing Winter Olympics in 2022. Some observers think the virtual yuan could bolster the government’s power over the country’s financial system and one day maybe even shift the global balance of economic influence.


MFDA SEEKS TO SPEED UP ACCOUNT TRANSFERS

Investment Executive - James Langton (2020-06-01)

The self-regulatory organization issued a consultation paper on Monday that seeks industry feedback on the problems firms face regarding client account transfers.


CONSUMER CREDIT PLUNGES IN APRIL THANKS TO COVID-19 RELIEF

Investment Executive - IE (2020-06-01)

Scotiabank said consumer borrowing slowed as government relief efforts such as the Canada Emergency Response Benefit took effect and consumers became more cautious amid economic uncertainty.


CMHC HEAD WARNS HOMEBUYERS TO QUESTION MOTIVES OF THOSE SAYING PRICES WILL RISE

Better Dwelling - Stephen Punwasi (2020-06-01)

Canada’s economy has been slowing in growth for a few quarters, even before the pandemic. It got much worse after the economic lockdown. Stat Can reported GDP fell 2.11% in Q1 2020, when compared to the previous quarter. Pre-pandemic growth in Q4 2019 also wasn’t very impressive though, coming in at the weakest level since the 2015 oil crash. With the exception of some noise in Q2 2019, GDP growth has been trending lower since the back half of 2017. This view gets even worse if you’re looking at the issue on a per capita basis.


LIBRO CREDIT UNION IS FIRST IN CANADA WITH NEW DIGITAL SERVICE

Libro Credit Union - Libro (2020-05-30)

Scott Ferguson, Libro’s Executive Vice President, Information Systems, said: “Everyone at Libro is thrilled to be leading the way on bringing this service to Canada’s financial services industry. We’re happy to say it’s another example of Libro making sure we are involved in the latest trends in payments, and being ready to meet the demands of customers.


CANADIAN BANKS DOWNPLAY HOUSING RISKS

RichardsonGMP - Hilliard MacBeth (2020-05-30)

A large correction in house prices is forecast by many non-bank analysts. Even the CMHC forecasts average price declines of 9 to 18 percent. Other macroeconomic researchers expect price declines of 30 to 40 percent, in line with past crashes in Canada and other countries. According to MRB Partners the average decline in housing bear markets is 36 percent:


GOVERNMENT ANNOUNCES COMING INTO FORCE OF REGULATIONS PROVIDING RELIEF TO FEDERALLY REGULATED PENSION PLAN SPONSORS

Press Release - Cdn Govt (2020-05-30)

Due to the pandemic’s effects on the economy, some federally regulated pension plan sponsors are facing significant financial constraints. To provide temporary relief to sponsors of federally regulated, defined benefit pension plans, on April 15, 2020 the government announced a moratorium on solvency special payments.


TORSTAR BUYERS PLAN TO RAMP UP STRUGGLING NEWSPAPER’S DIGITAL STRATEGY

G&M - Jeffrey Jones (2020-05-29)

The bidders for Torstar Corp. plan to push the struggling newspaper publisher’s transformation into a digital news and information provider, which they say is an effort best accomplished outside the glare of public markets.


PROFIT FALLS AT TD AND CIBC AS LOAN LOSS PROVISIONS SOAR

CBC - Reuters (2020-05-29)

The massive jump in provisions took the total amount set aside by Royal Bank of Canada, Bank of Montreal , Bank of Nova Scotia, National Bank of Canada , CIBC and TD Bank to $10.93 billion.


INVESTORS TO BANKS: SHOW ME THE MONEY YOU’RE SETTING ASIDE TO COVER BAD LOANS

FP - Geoff Zochodne (2020-05-29)

The main business lines at both CIBC and TD were hit hard by COVID-19. TD said net income at its Canadian retail unit was approximately $1.2 billion, which was down 37 per cent year over year, as loan-loss provisions jumped by $873 million as a result of a bleaker economic forecast. Its U.S. retail banking line was hit even harder, with net income falling 73 per cent from a year earlier to $336 million.


MORGAN STANLEY NOT GIVEN ADVISORY ROLE ON ARAMCO PIPELINE SALE: SOURCES

Reuters - Clara Denina, Davide Barbuscia (2020-05-29)

Although Morgan Stanley was one of Aramco’s top advisers on its initial public offering last year, three local banks - NCB, Samba and HSBC Saudi Arabia - ended up controlling most of the process when the listing was scaled down.


HOUSING FACES MULTI-YEAR CLIMB OUT OF COVID-19 HOLE IN CANADA

Bloomberg - Shelly Hagan (2020-05-29)

“Following declines in 2020, housing starts, sales and prices are expected to start to recover by mid-2021 as the pandemic recedes,” Bob Dugan, chief economist at Canada Mortgage and Housing Corp., wrote in a market outlook report Wednesday. “Sales and prices are still likely to remain below their pre-Covid-19 levels by the end of 2022.”


JAMIE DIMON CAPTURES THE STOCK MARKET MOMENT

Bloomberg - Marcus Ashworth (2020-05-29)

Don’t fight the U.S. Federal Reserve — repeat that mantra until it sticks.


BBVA CALLS FOR EASING OF CORONAVIRUS RESTRICTIONS

FT - Daniel Dombey, Stephen Morris (2020-05-29)

BBVA, Spain’s second-largest bank by market capitalisation, said it would cut its internal financial targets for this year and called for the relaxation of coronavirus restrictions to help kick-start the economy.


COVID-19 MEASURES – FAQS FOR FEDERALLY REGULATED DEPOSIT-TAKING INSTITUTIONS

OSFI - OSFI (2020-05-29)

Sample faq question: What does OSFI mean when it says banks can treat mortgage borrowers who apply for payment relief as performing loans? When does a bank now have to designate a mortgage loan as non-performing?


WHAT’S BEHIND YOUR MORTGAGE RATE

BOC - BOC (2020-05-29)

A broad discussion/explanation of the factors the contribute to individual mortgage rates.


DEALING WITH EXTREME UNCERTAINTY

BOC - Stephen S. Poloz (2020-05-29)

In the face of this uncertainty, our priorities are helping people and the economy and sticking with our inflation target.


FIFTEEN TSX STOCKS THAT SHOWED THEIR METTLE WITH FIRST QUARTER EARNINGS

G&M - Ian Tam (2020-05-28)

Over this period the strategy produced an annualized total return of 11.7 per cent while the Morningstar Canada Gross Return Index advanced 7 per cent over the same time frame. On a one-year trailing basis ended April, 2020, the strategy lost 6.1 per cent while the index lost 8.3 per cent. The stocks that meet the requirements to be purchased into the model today are listed in the table below.


CANADA BRACES FOR ECONOMIC RETALIATION FROM CHINA FOLLOWING MENG WANZHOU COURT RULING

G&M - Robert Fife, Steven Chase (2020-05-28)

The federal government said a B.C. judge’s refusal on Wednesday to end an extradition case against Chinese telecom executive Meng Wanzhou was entirely out of its hands as it braced for economic retaliation from Beijing.


TRADING STRATEGY LOSSES HURT BANKS’ CAPITAL MARKETS PROFIT

G&M - Mark Rendell (2020-05-28)

The capital markets divisions at the Bank of Montreal and the Royal Bank of Canada did little to prop up earnings this quarter, as losses due to market volatility overshadowed strong fixed income trading activity and debt underwriting.


RBC PROFIT FALLS 54% AS LOAN-LOSS PROVISIONS SPIKE AMID COVID-19 PANDEMIC

G&M - James Bradshaw (2020-05-28)

Royal Bank of Canada’s second-quarter profit fell 54 per cent as the bank built up massive reserves to cover potential losses on loans as a result of the coronavirus pandemic.


BANK OF MONTREAL PROFIT SINKS AS MORE THAN $1.1-BILLION EARMARKED TO COVER POTENTIAL LOAN LOSSES

G&M - James Bradshaw (2020-05-28)

Bank of Montreal reported a 54-per-cent plunge in second-quarter profit as it earmarked more than $1.1-billion to cover potential losses on loans amid the coronavirus pandemic.


NEW HOME CONSTRUCTION COULD DROP BY AS MUCH AS 75 PER CENT FROM EARLY-YEAR LEVELS, CMHC WARNS

G&M - Rachelle Younglai (2020-05-28)

Canadian home building could drop by as much as 75 per cent and prices could decline by up to 25 per cent in oil-producing provinces, the country’s housing agency said in its outlook that predicts a long recovery from the coronavirus pandemic.


WHY THE PEOPLE RUSHING TO GET LIFE INSURANCE NOW ARE DOING A SMART THING

G&M - Rob Carrick (2020-05-28)

The pandemic has revealed a big but fixable hole in our financial planning for emergencies.


HOUSING MARKET WILL FEEL EFFECT OF COVID-19 UNTIL 2022, CMHC SAYS

CBC - CBC (2020-05-28)

Canada's national housing agency says the number of new homes being built and sold will remain below the levels they were at before COVID-19 until 2022 at least, and prices won't get back to where they were for another two years either.


ROYAL BANK AND BMO PROFIT CUT IN HALF AS LOAN LOSS PROVISIONS SPIKE BY 500%

CBC - Pete Evans (2020-05-28)

A big reason for the profit plunge is a spike in loan loss provisions. That's the amount that banks set aside to cover bad loans. Royal hiked its provisions to $2.8 billion in the quarter, a huge jump from $426 million last year.


WHAT THE OILPATCH THINKS ABOUT THE FINANCIAL AID OFFERED BY OTTAWA

CBC - Kyle Bakx, Tony Seskus (2020-05-28)

One of those details is a built-in safeguard for taxpayers which requires participating companies to give the government either an ownership stake or cash equivalent of 15 per cent of the principal loan amount.


NATIONAL BANK PROFIT DROPS 32% AS LOAN LOSS PROVISIONS SOAR

CBC - CP (2020-05-28)

The Montreal-based bank said after markets closed that its net income amounted to $379 million for the period ended April 30, compared with $558 million in the same quarter last year.


VANCOUVER MODEL FOR MONEY LAUNDERING UNPRECEDENTED IN CANADA, B.C. INQUIRY HEARS

CBC - Bethany Lindsay (2020-05-28)

Those professional groups allegedly included Silver International Ltd., the Richmond company at the centre of a high-profile money laundering probe that collapsed in 2018. The company and two directors were criminally charged, but the charges were later stayed in court.


‘THIS IS STAR TREK FINANCE’: COVID-19 FORCES CANADA’S BANKS INTO A STRANGE NEW WORLD

FP - Geoff Zochodne (2020-05-28)

“We would describe the current environment … as going where no one has gone before,” said Louis Vachon, chief executive of Montreal-based National Bank of Canada, during a conference call Tuesday evening. “So this is Star Trek finance.”


MORTGAGE 'DEFERRAL CLIFF' AVOIDED: SCOTIABANK SAYS REQUESTS TO DELAY LOAN PAYMENTS HAVE PEAKED

FP - Geoff Zachodine (2020-05-28)

“I would like to point out that requests for payment deferrals peaked in the first week of April here in Canada, and we are now tracking at significantly lower levels,” said Brian Porter, president and CEO of Scotiabank, during a conference call Tuesday morning. 


POST-PANDEMIC RETURNS UNLIKELY TO MATCH PAST DECADE'S: CPPIB CHIEF

FP - Barbara Shecter (2020-05-28)

“I don’t expect as good returns in the next 10 years as they have been in the last 10 years,” Machin said in an interview after the CPP fund posted a 3.1 per cent annual return for the year ended March 31, a period that also contained punishingly low oil prices and deep interest rate cuts.


WHY BMO LOST $180 MILLION DURING JUST ONE DAY OF TRADING

BNN - BNN Video (2020-05-28)

Two-thirds of the trading losses on that day were tied to the firm’s equity-linked note-related business, according to Flynn. The business sells notes to investors that give them returns linked to equities. The other third of the day’s trading losses were from hedging around Bank of Montreal’s derivative book, he said.


THE EUROPEAN UNION IS ON THE BRINK OF HISTORIC CHANGE

BNN - Ferdinando Giugliano (2020-05-28)

The Commission president outlined a 750 billion-euro ($825 billion) rescue program to help the bloc cope with the fallout from Covid-19. EU governments still have to agree to the plan, and some northern member states — especially the Netherlands and Austria — are likely opponents. But if the final deal looks even close to Von der Leyen’s proposal, it will mark a radical transformation of Europe.


GOLDMAN SACHS PRESIDENT SAYS BANK ON TRACK TO MEET GROWTH GOALS

Reuters - Elizabeth Dilts Marshall (2020-05-28)

However, the crisis has created unexpected growth in some of Goldman’s newer businesses. Deposits in Goldman’s Marcus savings accounts rose to $80 billion as of late May, up from $72 billion on March 31. The bank also now has over 175 large and medium-sized corporate clients using its cash management platform, Waldron said.


BMO’S $130 MILLION TRADING LOSS SHOWS PAIN FROM NOTES, HEDGING

Bloomberg - Doug Alexander (2020-05-28)

The company, in its presentation Wednesday, offered an explanation: “In March, markets experienced unprecedented asset price declines, record volatility, extreme liquidity challenges and dislocations, and significant widening of corporate bond spreads. Given certain trading activities and positions, we experienced negative trading revenue during the most volatile days.”


ONLY 5% OF GREATER TORONTO’S NEW HOMES SOLD LAST MONTH

Better Dwelling - Daniel Wong (2020-05-28)

The Altus benchmark price for new homes increased, but with some confusing metrics. The benchmark for a new single-family unit reached $1,117,955 in April, down 0.2% from a month before. The condo apartment benchmark reached $984,369, up a massive 29.8% from last year. Detached prices are still about 10% lower than peak, while condo apartments are at a new high.


TRANSUNION WARNS A “SEVERE” SCENARIO LIKELY IN CANADA, MORTGAGE DEFAULTS TO JUMP

Better Dwelling - Stephen Punwasi (2020-05-28)

As previously discussed, risk firms forecast in ranges – which depend on various factors. TransUnion analysts looked at over 40 different metrics, including forbearance and credit. The “base case” before the pandemic saw slowing credit growth, and rising delinquencies. As the pandemic set in, analysts from the firm began to think the medium case was likely. However, due to recent developments, metrics now show we’ve entered the “severe scenario.” 


TORONTO PRIVATE LENDER CANSO FUNDS TORSTAR TAKEOVER BID, AFTER BACKSTOPPING TWO OF ITS PRINT MEDIA RIVALS

G&M - Andrew Willis (2020-05-28)

A Toronto-based fund manager has emerged as the lender of choice and potential kingmaker at Canadian print media companies, pledging $50-million for the planned takeover of Torstar Corp. after previously backstopping two of the publisher’s biggest rivals.


TD PROFIT DROPS 52% AS LOAN-LOSS PROVISIONS SURGE, CONSUMER ACTIVITY SLOWS AMID PANDEMIC

G&M - James Bradshaw (2020-05-28)

Toronto-Dominion Bank’s second-quarter profit fell 52 per cent as Canada’s most retail-focused lender suffered from a surge in expected loan losses and a slowdown in consumer activity amid the coronavirus pandemic.


BANKS REPORT UPTICK IN CREDIT CARD SPENDING, LOAN ACTIVITY AS CONSUMERS LOOSEN PANDEMIC PURSE-STRINGS

G&M - James Bradshaw, Mark Rendell (2020-05-28)

Credit card spending has begun to rebound and consumers are starting to take out new loans, even as Canadians remain cautious with personal finances as physical distancing measures relax.


CN LAYS OFF 5,800 AS RAIL TRAFFIC, ECONOMIC DEMAND FALL

G&M - Eric Atkins (2020-05-28)

Canadian National Railway Co. is making deeper cuts to its work force amid a plunge in rail traffic and economic demand stemming from the COVID-19 pandemic.


UNLIKE CPPIB’S PANDEMIC PERFORMANCE, AIMCO’S GIVES ALBERTANS CAUSE FOR CONCERN

G&M - Andrew Willis (2020-05-27)

Canadians can take comfort from knowing their pension plan was well-managed during a brutal market meltdown. However, Albertans have new reasons to worry about poor performance from their government-owned fund manager.


COVER YOUR EARS: CANADA’S REAL ESTATE MARKET WON’T SHRUG OFF THIS CRISIS LIKE THE LAST ONE

G&M - KONRAD YAKABUSKI (2020-05-27)

Before COVID-19 struck, Canada’s real estate sector had been on a tear for two decades. Despite minor periodic lulls, the housing market kept on defying warnings of a major price correction even as household debt surged to record levels and income growth stagnated.


INSURER DEFIES COVID-19

Insurance-Portal.ca - Aurelia Morvan (2020-05-27)

The company reported a net loss of $3.2 million in the first quarter of 2020. However, this result is 15.8% or $600,000 higher than that of Q1 2019, when the company reported a net loss of $3.8 million.


IA FINANCIAL GROUP CONCLUDES ACQUISITION OF US-BASED VEHICLE WARRANTY BUSINESS

Insurance-Portal.ca - IIJ (2020-05-27)

iA Financial Corporation has concluded the acquisition of a U.S. vehicle warranty business.


CHALLENGES TO CANADIAN REAL ESTATE WILL BE “COMING IN 12-18 MONTHS”

Better Dwelling - Daniel Wong (2020-05-27)

No surprise, and an issue that’s been cited in most forecasts – employment is going to have the biggest impact. The bank notes the unemployment rate went from 5.5% pre-crisis, to 13% at writing – and will likely inch higher. They echoed the belief most job losses will be temporary, and the market will see the rate drop to 8% next year. A 200 bps increase is all that’s needed for unemployment to become recessionary. For this reason,  the bank is forecasting a recessionary environment post-pandemic. This is expected to impact both demand for housing, as well as the ability to cover home payments.


U.S. MOVES TO AUDIT CHINESE FIRMS. MARKET FRETS OVER WHAT COMES NEXT.

WSJ - Dave Michaels and Akane Otani (2020-05-27)

Chinese companies raised billions of dollars by listing their shares on U.S. stock exchanges while avoiding the accounting-quality checks that other public firms get. But economic tensions have pushed a financial-markets issue into the political mainstream.


SCOTIABANK Q2 PROFIT DOWN FROM YEAR AGO AS PROVISIONS FOR CREDIT LOSSES SOAR

Investment Executive - CP (2020-05-27)

The bank’s provisions for credit losses totalled nearly $1.85 billion for the quarter, more than doubling from $873 million a year earlier.


NATIONAL BANK REPORTS Q2 NET INCOME OF $379 MILLION, BEATS ANALYST EXPECTATIONS

Investment Executive - CP (2020-05-27)

The Montreal-based bank says its net income amounted to $379 million for the period ended April 30, compared to $558 million in the same quarter last year.


FEDERAL DEFICIT LIKELY TO RISE TO $260B, SAYS PBO

Investment Executive - CP (2020-05-27)

Speaking to the Senate finance committee Tuesday, Giroux said the government has added about $7.6 billion in spending since his last report, pushing the potential deficit ever deeper.


VERSABANK - SECOND QUARTER 2020 RESULTS

VersaBank - Versabank (2020-05-27)

Latest results.


TRUDEAU REACHES OUT TO BANK CEOS FOR ADVICE ON ECONOMIC RECOVERY

G&M - Daniel Leblanc (2020-05-26)

Although Mr. Trudeau has called the bank CEOs on occasion in the past, such direct discussions are not common. In the fall of 2018, Mr. Trudeau briefed them in separate calls at a key juncture in negotiations to redraw the North American free-trade agreement.


CHINA SAYS BANKS' BAD LOANS AT HIGH LEVEL DUE TO VIRUS, CREDIT RISKS ACCUMULATE: STATEMENT

Reuters - Reuters (2020-05-26)

China’s banking and insurance regulator said on Tuesday that bad loans at banks now stand at a high level due to the impact of the coronavirus pandemic.


EX-COUTTS BANKER ON TRIAL OVER $700 MILLION TRANSFER FROM 1MDB TO JHO LOW

Bloomberg - Hugo Miller (2020-05-26)

A decade after billions of dollars were wired to Swiss banks, the country is holding its first trial into whether a local banker failed to stop a $700 million transfer into an account controlled by Low Taek Jho, the alleged mastermind behind the 1MDB scandal.


MORTGAGE CREDIT TIGHTENS, CREATING DRAG ON ANY ECONOMIC RECOVERY

WSJ - Andrew Ackerman and Nick Timiraos (2020-05-26)

With interest rates falling to the lowest level on record, this should be a banner time for households in search of a new mortgage.


SCOTIABANK PROFIT DROPS 41% AS LOAN-LOSS PROVISIONS SOAR AMID PANDEMIC FALLOUT

G&M - James Bradshaw (2020-05-26)

Scotiabank is the first major Canadian lender to report earnings since the novel coronavirus wreaked havoc on public health and economic activity, providing an early barometer for the depth of the losses Canada's banks expect to suffer on loans. The bank added about $1-billion to loan-loss reserves for the fiscal second quarter, bringing provisions for credit losses to $1.85-billion, up 111 per cent from a year ago.


CI FINANCIAL BUYS MINORITY STAKE IN U.S.-BASED WEALTH MANAGER CONGRESS AS INTERNATIONAL EXPANSION CONTINUES

G&M - Clare O'Hara (2020-05-26)

Independent fund giant CI Financial Corp. continues to boost its presence in the U.S. market with its latest purchase of a minority interest in Congress Wealth Management LLC, a Boston-based registered investment adviser firm that caters to high-net-worth families.


CPPIB WEATHERS CORONAVIRUS DOWNTURN WITH MODEST INVESTMENT LOSS

G&M - David Milstead (2020-05-26)

The Canada Pension Plan Investment Board managed to stay in the black for its just-completed fiscal year, despite a final quarter that shaved more than $10-billion from the pension’s assets.


FEDERAL DEFICIT LIKELY NOW AT $260-BILLION DUE TO COVID-19, PBO SAYS

G&M - CP (2020-05-26)

Parliament’s spending watchdog says the estimated federal deficit for the year has likely risen to about $260-billion with new measures rolled out in recent weeks.


DEUTSCHE BANK CEO FEELS MARKETS ARE TOO OPTIMISTIC ABOUT CORONAVIRUS RECOVERY

G&M - Reuters (2020-05-26)

Deutsche Bank chief executive Christian Sewing said on Tuesday that markets were too optimistic in their assessment of a recovery from the novel coronavirus crisis.


QUARANTINED INVESTORS CREATE ‘PERFECT STORM OF STUPID’ (PLUS, A TSX STOCK SKYROCKETING ON THE SHIFT TO REMOTE WORKING)

G&M - Scott Barlow (2020-05-26)

Almost 800,000 bored Americans have opened online trading accounts in what Business Insider’s Linette Lopez describes as ‘a perfect storm of stupid.’


CPP ADDS $17B TO ASSETS NOW WORTH MORE THAN $409B DESPITE PANDEMIC

CBC - Pete Evans (2020-05-26)

Net assets for Canada's national pension plan totalled $409.6 billion as of the end of March, up from $392 billion at the end of the previous financial year.


COMPARED WITH BANK OF CANADA’S BIGGER WORRY — DEPRESSION-INDUCING MIX OF DEFLATION AND DEBT

FP - Kevin Carmichael (2020-05-26)

One point he likes to make is that policy-makers learn from their mistakes, so errors of the past won’t be repeated. He went so far as to tell the House finance committee last month that he would welcome inflation because upward price pressure would imply the economy was recovering from the COVID-19 recession.


NATIONAL BANK OF CANADA PROFIT FALLS 32% ON LOAN LOSS PROVISIONS

FP - Reuters (2020-05-26)

Net income fell to $379 million, or $1.01 per share, in the second quarter ended April 30, from $558 million, or $1.51 per share, a year earlier.


JPMORGAN CEO: BANK WILL AGAIN BOOST CREDIT RESERVES IN SECOND QUARTER

Reuters - Elizabeth Dilts Marshall (2020-05-26)

JPMorgan Chase & Co (JPM.N) Chief Executive Officer Jamie Dimon said on Tuesday that he expects the bank will boost its credit reserves again in the second quarter by an amount “roughly equivalent” to the $7 billion it added in the first quarter to protect the bank from a potential wave of loan defaults.


CAPITALISM ALONE CANNOT SAVE CORONAVIRUS-BASHED COMPANIES. NATIONALIZATIONS ARE COMING

G&M - Eric Reguly (2020-05-25)

Governments lunged into the nationalization game in the autumn of 2008, when the financial crisis shredded banks alive. The novel coronavirus crisis will force them to make a repeat performance.


BANK OF ENGLAND TO PHASE OUT SOME EMERGENCY COVID-19 MARKET SUPPORT

G&M - David Milliken (2020-05-25)

The Bank of England will begin to phase out weekly emergency support for financial markets that it introduced in response to coronavirus fears in March, now that markets have calmed and banks no longer have difficulty accessing cash.


CREDIT CARD CHARGEBACKS A CHALLENGE FOR SOME AIRLINE CUSTOMERS

CBC - Jeremy McDonald, Asha Tomlinson (2020-05-25)

Customers say they were also told of policies that exclude cases where a travel credit was offered, or were encouraged to accept a credit rather than pursue a dispute. Some say they were told pandemic-related disputes would not be addressed at all.


THE UNINTENDED CONSEQUENCES OF DOUBLING THE MINIMUM DOWN PAYMENT ON A HOUSE

FP - Haider-Moranis Bulletin (2020-05-25)

Evan Siddall, chief executive of Canada Mortgage and Housing Corp. (CMHC), expressed serious concerns about Canadians’ increasing debt levels, which are dominated by mortgage debt, in his prepared remarks on Tuesday for the House of Commons Standing Committee on Finance.


APPS TO BOOK ELEVATOR RIDES, MASKS AND STAGGERED SHIFTS: TORONTO BANKERS GET GLIMPSE OF NEW OFFICE NORMAL

FP - Doug Alexander (2020-05-25)

Elevators will have limits of four people and Cadillac Fairview plans to add thin anti-microbial film over the buttons. It’s looking to introduce digital apps so people can schedule their elevator rides instead of waiting in line, Iacono said, “so that you know with certainty that you’re not going to have to wait a long time in order to be able to access your floors.”


BLACKROCK AND THE RISE OF CORPORATISM

FP - Terence Cocoran (2020-05-25)

Is this a fundamental clash of ideas between two different proposals for economic and political governance? They are, more likely, two sides of the same corporatist coin in which the state and corporations, the public and the private, the collective and the individual, converge to form some new variation on an old and historically troublesome model.


MORGAN STANLEY CEO: TOO EARLY TO CONSIDER RESTARTING SHARE BUYBACKS

Reuters - Elizabeth Dilts Marshall (2020-05-25)

Morgan Stanley, along with JPMorgan Chase & Co (JPM.N), Bank of America (BAC.N) and five others, voluntarily suspended their share repurchases in mid-March to preserve liquidity during the novel coronavirus pandemic to lend to individuals and businesses in need.


‘NEVER WASTE A CRISIS’: INSIDE SAUDI ARABIA’S SHOPPING SPREE

FT - Andrew England and Arash Massoudi (2020-05-25)

You don’t want to waste a crisis . . . So for us, definitely we are looking into any opportunities.”


INSURANCE PRICES RISE ACROSS THE BOARD AS CORONAVIRUS HITS

FT - Oliver Ralph (2020-05-25)

Insurers are facing a double hit from coronavirus. Claims from customers could pass $100bn in total, while there has also been a hit to reserves from volatile financial markets.


UK’S LARGEST PENSION SCHEME STOCKPILES CASH

FT - Attracta Mooney (2020-05-25)

Britain’s biggest pension fund has hoarded cash reserves in anticipation of further market uncertainty as companies and countries grapple with the fallout of coronavirus.


HOUSING ACTIVITY COULD ACCELERATE AS ECONOMY OPENS: CIBC REPORT

Investment Executive - IE (2020-05-25)

“The housing market was basically frozen in April,” the Friday report said, with both sales and new listings down substantially last month. However, that resulted in “a relatively stable sales-to-listing ratio and a muted price response,” and all provinces were affected similarly.


WHAT EMERGENCY RELIEF WILL INSURERS OFFER CUSTOMERS? HERE’S WHAT THEY TOLD US

Canadian Underwriter - Adam Malik (2020-05-25)

This article chronicles the steps insurers are taking. For example, Customers of the three carriers with an active auto policy as of Apr. 8 can get a one-time payment equaling about 25% of their monthly premium. Allstate said cheques can be expected in May. The company is looking into offering electronic options, according to a spokesperson.


CANADIAN ECONOMY ENTERING ‘UNKNOWABLE TIMES’ DUE TO DOWNTURN FROM PANDEMIC, POLOZ SAYS

G&M - DAVID PARKINSON (2020-05-25)

He said the most pressing danger stemming from this uncertainty is that the dramatic COVID-19 economic downturn could fuel serious deflationary pressures – a strong argument for central banks to respond with decidedly inflationary monetary policy.


AS CHINA GOES GLOBAL, ITS BANKS ARE COMING OUT, TOO

Economist - Economist (2020-05-25)

american bankers make for bold bosses. From his roomy office in Manhattan, in early February, the boss of one of the country’s biggest suggested he has few serious rivals—and all are just a few blocks away. “us banks continue to gain share from European banks.” Asia barely gets a mention. “Chinese institutions have generally proven incapable of expanding globally. When they buy sports cars and flashy hotels, it just doesn’t feel solid.” Days later Morgan Stanley, America’s sixth-largest bank, announced its $13bn acquisition of E-Trade, a broker—the biggest by a Wall Street bank since 2008.


GOLDMAN SACHS FORECLOSES ON 10,000 HOMES FOR ‘CONSUMER RELIEF’

NY Times - Matthew Goldstein (2020-05-25)

Investors in distressed mortgages often face little opposition when they take homeowners to court, but some of the legal proceedings have not been easy for Goldman.


MARCEL OSPEL, ARCHITECT OF THE SWISS BANK UBS, IS DEAD AT 70

NY Times - Stanley Reed (2020-05-25)

Mr. Ospel rose from modest origins to become the leading figure in Swiss banking in the early years of this century — and, for a time, one of the top financial executives of his generation. His crowning achievement was engineering the merger in 1998 of Swiss Bank Corporation, which he headed, with Union Bank of Switzerland, creating the wealth management giant UBS.


MOST OF CANADA’S INSURED MORTGAGES ON DEFERRALS PROJECTED TO BE UNDERWATER SOON

Better Dwelling - Stephen Punwasi (2020-05-25)

The number of Canadians on mortgage deferrals has been rapidly rising, and that number is expected to climb further. The CMHC estimates 12% of insured mortgages are now on a payment deferral. They expect this number will rise to 20% towards the end of the summer – by September. Which is part of the reason they warned first-time homebuyers to be careful with the amount of debt they assume.


IA FINANCIAL GROUP CONCLUDES ACQUISITION OF US-BASED VEHICLE WARRANTY BUSINESS

Insurance-Portal.ca - IIJ (2020-05-25)

iA Financial Corporation has concluded the acquisition of a U.S. vehicle warranty business.


ECONOMICAL INSURANCE ELECTS MEMBERS TO ITS BOARD OF DIRECTORS

Insurance Business - Lyle Adriano (2020-05-25)

The individuals were elected during Economical’s annual meeting held just yesterday. The meeting was held over a live audio webcast, and the votes for the board members were similarly conducted through electronic means.


REMARKS BY JEREMY RUDIN, SUPERINTENDENT AND BEN GULLY, ASSISTANT SUPERINTENDENT, REGULATION SECTOR TO THE HOUSE OF COMMONS STANDING COMMITTEE ON FINANCE

OSFI - Jeremy Rudin (2020-05-25)

One of OSFI's most important tools in the current situation is setting capital levels. You may wish to think of capital as a form of self-insurance, which provides both a buffer against unforeseen losses and an incentive to manage risk taking. Strong capital levels allow a financial institution to operate normally even if it experiences losses.


PUBLIC PENSION PLANS LARGELY STICK TO CONVENTION AND OFFER LITTLE INFORMATION ON PANDEMIC IMPACT

G&M - David Milstead (2020-05-25)

The Canada Pension Plan Investment Board is about to give Canadians insight into what COVID-19 has done to the investments of the country’s public pensions in the past few months – but for members of most other major plans, the damage that’s been done from a sharp, sudden decline in markets may remain a mystery.


TSX GAINS AS POT STOCKS SOAR; CANADA’S 10-YEAR BOND YIELD AT ALL-TIME LOW

G&M - Darcy Keith (2020-05-25)

Canada’s main stock index rose on Monday as investors looked to an eventual economic recovery from the coronavirus with more countries scaling back lockdown measures. Pot stocks rallied sharply on positive momentum that started for many of them last week.


BARRY SCHWARTZ DISCUSSES LAURENTIAN BANK

BNN - Video (2020-05-25)

Barry Schwartz of Baskin Wealth Management gives his outlook for shares of Laurentian Bank.


IT COULD TAKE UP TO FIVE YEARS TO GET BACK TO NORMAL: DAVID ROSENBERG

BNN - Video (2020-05-25)

David Rosenberg, chief economist at Rosenberg Research and Associates says that it could take between three to five years for the economy to get back to normal. He also says that economies can reopen all they want, but that demand is what's key.


POLOZ REJECTS ‘DIRE’ FORECASTS, SAYS ECONOMY WILL REBOUND QUICKLY

G&M - DAVID PARKINSON (2020-05-22)

Bank of Canada Governor Stephen Poloz believes Canada’s economy remains on track for a healthy recovery this year from the COVID-19 crisis, despite the steady flow of discouraging economic headlines in recent weeks.


BOC NEEDS TO FIGURE OUT HOW PANDEMIC PATTERNS WILL AFFECT INFLATION MEASURES

G&M - DAVID PARKINSON (2020-05-22)

“These shifts mean that the standard consumer price index, [which is] based on the cost of a fixed basket of goods, is less meaningful,” he said. “Over all, the results indicate that the decline in inflation experienced by consumers may be less than indicated by the official CPI measure.”


RBC CAPITAL MARKETS LIMITS TRADING OF WORLD’S LARGEST OIL ETF

G&M - Mark Rendell (2020-05-22)

RBC Capital Markets is limiting its trading relationship with a wildly popular U.S.-based oil exchange traded fund, after unprecedented price volatility forced the bank to reassess its exposure to oil futures contracts.


CREDIT CARD CHARGEBACKS A CHALLENGE FOR SOME AIRLINE CUSTOMERS

CBC - Jeremy McDonald, Asha Tomlinson (2020-05-22)

A chargeback is a reversal of a charge on your credit card, resulting from a dispute filed with the institution that issued the card — often a bank.


ALBERTA AND QUEBEC LEAD THE COUNTRY IN CMHC-INSURED MORTGAGE DEFERRALS

CBC - CBC (2020-05-22)

Roughly 12 per cent of mortgage holders have elected to defer payments so far, Evan Siddall, the chief executive officer at Canada Mortgage and Housing Corporation, told the House of Commons standing committee on finance in Ottawa on Tuesday.


WILL COVID-19 LEAD TO AN EXODUS FROM CROWDED OFFICES IN DOWNTOWN TOWERS? DON'T COUNT ON IT, EXPERTS SAY

CBC - Dianne Buckner (2020-05-22)

"At our office building, you can only have two people in an elevator and there's 550,000 square feet of people," said Glenn Gardner, a broker on the downtown Vancouver leasing team of commercial real estate firm Avison Young.


HOW THE BANK OF CANADA COULD PLAY A ROLE IN SAVING OILSANDS COMPANIES — AND THE ENVIRONMENT

FP - Kevin Carmichael (2020-05-22)

I’m not sure the climate debate is as unsettled as it seems. Sure, the Alberta government continues to fight the carbon tax, but the biggest oilsands companies have all pledged to lower their net greenhouse gas emissions to zero by 2050, the same target that Prime Minister Justin Trudeau has set for the country.


CANADIAN BANK EARNINGS EXPECTED TO DROP BY 36% IN Q2

FP - Nichola Saminather (2020-05-22)

Earnings expectations have undergone “a monumental, paramount change,” said Kash Pashootan, chief executive of First Avenue Investment Counsel. Pashootan also saw credit-loss provision ratios four to five times above pre-pandemic levels and warned of “lagged, yet material, insolvencies and defaults that will carry forward for several quarters.”


BROOKFIELD IS SITTING ON $60 BILLION TO HELP IT WEATHER THE PANDEMIC

FP - Scott Deveau (2020-05-22)

“In reflecting on what really matters to our business, it is liquidity, liquidity and liquidity, in that order,” he wrote in the letter. “The most damaging thing for any business owner is to find yourself out of business and unable to participate in the recovery, or in a position of needing to issue shares which dilute the owners, and therefore make it impossible to ever recover from undue dilution at the wrong time.”


BANKS PURSUE LUCKIN COFFEE CHAIRMAN'S ASSETS AFTER LOAN DEFAULT

Reuters - Scott Murdoch (2020-05-22)

The banks that lent $518 million to Luckin Coffee (LK.O) Chairman Charles Zhengyao Lu have started court proceedings to liquidate his private company, a government gazette for the British Virgin Islands showed.


RISKS TO ECONOMIC OUTLOOK ARE OVERBLOWN IN CANADA, POLOZ SAYS

Bloomberg - Theophilos Argitis (2020-05-22)

The governor has been forced to take unprecedented action just to keep credit markets from seizing up -- cutting the benchmark rate to near zero, injecting more than C$300 billion ($210 billion) of cash into financial markets and undertaking the central bank’s first-ever foray into large-scale purchases of government debt.


MILLIONS OF PPP LOAN-FORGIVENESS REQUESTS ARE ABOUT TO RAIN ON BANKS

Bloomberg - Olivia Rockerman (2020-05-22)

Banks are preparing for a flood of applications for loan forgiveness under the U.S. Paycheck Protection Program, marshaling staff to help borrowers navigate a complicated process that recalls the fraught early days of the Covid-19 small-business relief effort.

   


TRUDEAU AID SADDLES COMPANIES WITH DEBT, MAY SLOW RECOVERY: RBC

Bloomberg - Shelly Hagan (2020-05-22)

Total economic support during the pandemic equals about 10.2% of Canada’s GDP versus 12.7% south of the border, RBC said in a note published Wednesday. Canada’s measures lean more heavily toward repayable loans and short-term tax deferrals instead of direct spending and grants.


THE PANDEMIC MAKES FANNIE AND FREDDIE EVEN MORE INDISPENSABLE

Bloomberg - Joe Light and Prashant Gopal (2020-05-22)

Even critics of government’s involvement in housing have undergone a bit of a conversion. “The private market can’t save us,” says Anthony Sanders, a finance professor at George Mason University who describes himself as a libertarian. He was a steadfast advocate for paring down Fannie and Freddie. “The tides have changed dramatically. Now we realize without Fannie and Freddie, we’d be in a world of hurt, because who else is going to buy these mortgages?”


POUND RISKS 35-YEAR LOW WITH BOE FUELING SUB-ZERO RATE BETS

Bloomberg - John Ainger (2020-05-22)

Sterling tumbled against a stronger dollar and gilt yields touched fresh all-time lows after Bank of England Deputy Governor Dave Ramsden became the latest policy maker to signal that interest rates below 0% could be a possibility. Traders in money markets are betting the U.K. could see sub-zero interest rates by year-end.


PANDEMIC POSES MOST SERIOUS THREAT TO FED’S GOALS ‘IN OUR LIFETIMES,’ CLARIDA SAYS

WSJ - Nick Timiraos (2020-05-22)

The coronavirus pandemic poses the most serious threat ‘in our lifetimes’ to the Fed’s goals of maintaining strong employment and stable prices, Fed Vice Chairman Richard Clarida said Thursday.


EUROPE’S RECOVERY IMPERILED BY BANKS TOO SCARED TO LEND

WSJ - Giovanni Legorano (2020-05-22)

The ECB is offering banks trillions of euros in ultracheap money to keep European businesses afloat with loans to fight the effects of coronavirus. Governments are further sweetening the deal. But evidence is mounting that the effort is stuttering.


CANADIAN REAL ESTATE FACES A NEW PROBLEM: DEFLATION

Better Dwelling - Stephen Punwasi (2020-05-22)

Widespread economic deflation can lead to something called a “deflationary spiral.” Since prices are dropping, consumers wait to see if they can get a better deal. If businesses can’t sell inventory, they slow orders for new inventory and investment. This leads to lower employment… which leads to less demand… leading to further price drops… which leads to… you get the point. It becomes even more of an issue if interest rates are kept low for a long period before. Keynes himself once warned that lowering rates after a period of extended low rates, will fail to stimulate demand.


CI TAKES FULL CONTROL OF WEALTHBAR, PLANS LAUNCH OF CI DIRECT INVESTING

Investment Executive - Rudy Mezzetta (2020-05-22)

CI, which already held a 75% stake in WealthBar, announced on Thursday that it had acquired the remaining 25% of the Vancouver-based online financial planning platform. WealthBar will be rebranded CI Direct Investing in the coming months, CI said, and Virtual Brokers will be rebranded when the two platforms are fully integrated.


CENTRAL 1 PRESENTS THE FIRST THIRD PARTY WIDGET AVAILABLE ON THE FORGE DIGITAL BANKING PLATFORM WITH DO SOME GOOD

Central 1 - Central 1 (2020-05-21)

“We know that tailored digital banking experiences are vital to the success of financial institutions across Canada,” said Mark Blucher, President and CEO of Central 1. “From day one, we voiced that building this ecosystem would be a game changer, and we’ve successfully delivered. By pooling our talent and resources, we can maintain pace with major fintechs, create economies of scale, accelerate time to market on Forge and connect more deeply with our members and customers.”


VISA INVESTS IN ANALYTICS OUTFIT GOODDATA

Finextra - Finextra (2020-05-21)

The US firm, which claims more than 50% of the Fortune 500 as users, recently launched freemium and growth pricing tiers to target smaller firms.


FIRST DATA AGREES $40M FTC SETTLEMENT

Finextra - Finextra (2020-05-21)

"First Data is paying $40 million because it repeatedly looked the other way while its payment processing services were being used to commit fraud," says Daniel Kaufman, deputy director of the FTC’s Bureau of Consumer Protection. "When companies fail to screen out fraudsters exploiting the payment processing system to steal people’s money, they’re breaking the law - and injuring consumers."


TENCENT ROLLS OUT CREDIT SCORING SYSTEM - REPORT

Finextra - Finextra (2020-05-21)

The move into credit scoring has been long trailed; in 2018, Tencent began a nationwide test of a system only to call it off the next day, claiming more improvements were needed.


CMHC PREDICTS HOUSE PRICES COULD DROP UP TO 18 PER CENT

G&M - Rachelle Younglai (2020-05-21)

Canada’s national housing agency is predicting home prices could plummet up to 18 per cent and mortgage arrears could soar to 20 per cent, a forecast some economists and real estate experts say is a particularly dire assessment of the pandemic’s effect on the housing market.


TRUDEAU URGES COMMERCIAL LANDLORDS TO OFFER TENANTS RELIEF THROUGH FEDERAL PROGRAM

G&M - CP (2020-05-21)

Prime Minister Justin Trudeau is asking Canada’s commercial landlords to buy into a federal program launching next week that would give companies a break on the rent due in only a few days.


LARGE COMPANIES APPLYING FOR NEW COVID-19 LOAN PROGRAM MUST GIVE OTTAWA OPTION OF OWNING SHARES

G&M - Bill Curry (2020-05-21)

The federal government will be able to take an ownership stake in public companies and will block executives from earning more than $1-million, according to newly released details of Ottawa’s loan program for struggling large companies.


BANK OF CANADA SAYS DOWNWARD PRESSURE ON INFLATION LIKELY ONCE SHUTDOWN ENDS

G&M - KELSEY JOHNSON AND DAVID LJUNGGREN (2020-05-21)

The Bank of Canada thinks there is likely to be downward pressure on inflation once coronavirus-related shutdowns are lifted, a senior official said on Wednesday, a sign the Bank is in no rush to raise near-record low interest rates.


U.S. INVESTMENT BANK MORGAN STANLEY LAUNCHES WEALTH MANAGEMENT BUSINESS IN CANADA

G&M - Andrew Willis (2020-05-21)

Expansion into the Canadian retail financial services arena, currently dominated by domestic banks, is part of Morgan Stanley’s strategic expansion in wealth management under chief executive James Gorman. After snapping up Solium, Mr. Gorman committed US$13-billion in February to the takeover of discount brokerage E-Trade Financial Corp. If the E-Trade acquisition receives regulatory approval, Morgan Stanley will administer US$3.1-trillion of client assets, including stock compensation plans for 4.6 million customers.


CANADIAN FASHION RETAILER REITMANS GRANTED CREDITOR PROTECTION WHILE RESTRUCTURING ITS 576 STORES

CBC - Pete Evans (2020-05-21)

Women's fashion chain Reitmans has been granted protection from its creditors while it restructures, the latest retail victim of the COVID-19 pandemic.


RETAILER PIER 1 TO PERMANENTLY SHUT DOWN, CLOSE ALL 540 STORES IN U.S. AND CANADA

CBC - CBC (2020-05-21)

"This decision follows months of working to identify a buyer who would continue to operate our business going forward," the chain said in a statement. "Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down."


WHY THE EASY RIDE POLICYMAKERS HAVE HAD ON MEETING INFLATION TARGETS MAY BE OVER

FP - Kevin Carmichael (2020-05-21)

“The shutdown is not typical,” Timothy Lane, the longest-serving deputy governor on the Bank of Canada’s policy committee, said in a speech on May 20. “These shifts mean the standard consumer price index, based on the cost of a fixed basket of goods, is less meaningful.”


SHOPIFY TO LAUNCH ITS OWN TAKE ON THE BUSINESS BANK ACCOUNT

FP - Geoff Zochodne (2020-05-21)

Shopify Inc. says it plans on allowing merchants to start opening their own very bank-like accounts with it in the United States later this year, and then in Canada at some point after that, as the e-commerce company expands further into financial services.


JPMORGAN PLANS TO HIRE A DOZEN RESEARCH ANALYSTS FOR CHINA BROKERAGE: SOURCES

Reuters - Sumeet Chatterjee, Michelle Price (2020-05-21)

With the headcount expansion for its new brokerage business, the bank’s research arm aims to more than double the number of China-listed firms it covers in five years from about 225, the people said.


CITIGROUP LAUNCHES NEW ESG INVESTMENT BANKING GROUP

Reuters - Imani Moise (2020-05-21)

The New York-based company said its Sustainability & Corporate Transitions group will be led by Banking, Capital Markets and Advisory (BCMA) Chief Strategy Officer Bridget Fawcett and Keith Tuffley, who has lead the unit’s sustainability efforts so far.


TRUDEAU OPENS DOOR TO BUYING STAKES IN LARGE CANADIAN COMPANIES

Bloomberg - Kait Bolongaro (2020-05-21)

Justin Trudeau’s government is willing to take equity stakes in Canada’s largest firms in exchange for bridge financing as big business grapples with fallout from the coronavirus pandemic.


DEMAND HIT WARRANTS LOOSER BANK OF CANADA POLICY, LANE SAYS

Bloomberg - Theophilos Argitis and Shelly Hagan (2020-05-21)

The Bank of Canada believes weaker demand from the global pandemic will outweigh any supply side impacts, putting downward pressures on prices.


THE DAY CORONAVIRUS NEARLY BROKE THE FINANCIAL MARKETS

WSJ - Justin Baer (2020-05-21)

An urgent call reached Ronald O’Hanley, State Street Corp.’s chief executive, as he sat in his office in downtown Boston. It was 8 a.m. on Monday, March 16.


BEHIND BOND MARKET’S STALL, INVESTORS SEE HARD TIMES AHEAD

WSJ - Sam Goldfarb (2020-05-21)

Yields on U.S. government bonds have stalled near all-time lows, a sign that investors are anticipating a difficult economic recovery and years of aggressive monetary stimulus.


CMHC WARNS CANADIANS: “SUPPORT FOR HOMEOWNERSHIP CANNOT BE UNLIMITED”

Better Dwelling - Stephen Punwasi (2020-05-21)

The CMHC is on an epic journey to try to contain the damage the economy is inflicting on home prices. They reiterated they are ready to buy up to $150 billion in mortgages, expand securitization, and extend deferrals. Currently they estimate 12% of mortgages are on payment deferral. They expect this number to rise to 20% by September. In other words, this is a huge (and expensive) operation they are undergoing. However, they warned their “support for homeownership cannot be unlimited.” After all, if the organization incurs substantial losses, it will require taxpayer help. Who wants higher taxes because Joe Vancouver put 5% on a 300 sqft condo at nearly a million dollars, thinking it can never go down in price? Probably not you.


IS CANADA’S AAA RATING IN PERIL?

Investment Executive - James Langton (2020-05-21)

“As related shutdowns/shut-ins lay waste to the global economy, fiscal fortunes have sunk … deep and quick,” the report said. “In Canada’s case, the deterioration in public sector finances appears more acute than elsewhere, owing to a hefty fiscal response to the virus and the added pressure of low commodity prices.”


PREPARING FOR A POST-CORONAVIRUS WEALTH ADVICE WORLD

Investment Executive - David Reeve (2020-05-21)

Clients are adapting, and often prefer virtual service that includes Zoom meetings and enhanced digital offerings. Many in our industry are predicting a permanent shift to remote advice as the “new normal.”


NEW MORTGAGE-BACKED SECURITIES MARKET INDEX FROM FTSE RUSSELL

Investment Executive - IE (2020-05-21)

FTSE Russell Canada has introduced a benchmark for the domestic mortgage-backed securities market, providing a new way to access the fixed income investments.


LONDON CITY AIRPORT PROVES ROUGH RIDE FOR CANADIAN PENSION PLAN OWNERS

G&M - PAUL WALDIE (2020-05-20)

London City’s proximity to the financial district – and Canary Wharf in particular – made it a favourite of corporate executives heading to European destinations. Passenger traffic soared, reaching a record 5.1 million in 2019. But that strength has suddenly become a liability as the COVID-19 pandemic brings the British economy to a standstill and raises questions about the future of business travel.


FACEBOOK TO PAY $9-MILLION PENALTY FOR MISLEADING CANADIANS ABOUT USER PRIVACY

ALEXANDRA STEVENSON and MATTHEW GOLDSTEIN - Christine Dobby (2020-05-20)

Competition Bureau after the watchdog concluded the social-media giant made misleading claims about protecting user privacy while improperly sharing data with the British consulting firm Cambridge Analytica.


HALF OF BANK OF CANADA’S CORPORATE BOND BUYING PROGRAM TO TARGET FINANCIAL AND ENERGY COMPANIES

G&M - Mark Rendell (2020-05-20)

The program, which begins on May 26, will see the Bank of Canada buy corporate bonds on the secondary market, with TD Asset Management acting as its broker. The goal is to add liquidity to the market, narrowing the spread between corporate and government bonds and making it easier for companies to issue new debt.


THE DEATH OF CASH IS A PROBLEM FOR THE BANK OF CANADA

G&M - Barry Campbell (2020-05-20)

In an old Twilight Zone episode, a bank robber stashes stolen cash and has himself cryogenically frozen. A hundred years later, waking up as programmed, his crime long forgotten, he digs up his stash and tries to spend it. No one will take it.


CANADIAN DARK POOL TRADING PLATFORM MATCHNOW TO BE ACQUIRED BY CHICAGO-BASED CBOE

FP - Barbara Shecter (2020-05-20)

MatchNow, Canada’s dominant dark trading platform, is being acquired by Chicago-based Cboe Global Markets Inc., a publicly traded holding company whose subsidiaries include the largest options exchange in the United States and third-largest stock exchange operator.


HSBC SEES DOUBLE-DIGIT WEALTH ASSET GROWTH IN ASIA BY 2023

Reuters - Sumeet Chatterjee (2020-05-20)

The Asia-focused lender in February announced the merger of its global private banking and retail wealth businesses to create a new wealth and personal banking unit, part of a radical strategy overhaul at Europe’s largest lender by assets.


HOUSING AGENCY SEES PRICES FALLING UP TO 18%, MAY CURB UNDERWRITING

Bloomberg - Chris Fournier (2020-05-20)

Canada’s federal housing agency is considering scaling back mortgage underwriting practices to limit excessive borrowing due to the threat of significant declines in real estate prices and rising debt levels.


EXTREME BEHAVIOR IS ON DISPLAY EVERYWHERE IN THE STOCK MARKET

Bloomberg - Sarah Ponczek (2020-05-20)

It took 33 days for stocks to drop 34%, and three weeks to gain half of it back. Whiplashed investors have been thankful for a dose of calm, but signs are emerging the lull may not last.


JPMORGAN JOINS GOLDMAN SAYING MORE QE NEEDED TO CAP BOND YIELDS

Bloomberg - Adam Haigh (2020-05-20)

The level of expected increase in supply this year -- about $2.1 trillion -- is offsetting the $1.9 trillion demand for bonds to the tune of $200 billion, the JPMorgan team concluded, implying upward pressure on yields. Goldman Sachs strategists last week said more issuance adds to the case for higher rates and steeper curves.


TOP U.S. BANKING REGULATOR TO STEP DOWN

WSJ - Andrew Ackerman (2020-05-20)

Joseph Otting is expected to step down this week as comptroller of the currency after completing an overhaul of rules governing billions of dollars of lending in low-income neighborhoods.


SONY TO ACQUIRE FULL CONTROL OF FINANCIAL UNIT FOR $3.7 BILLION

WSJ - River Davis (2020-05-20)

Sony Corp. said it would spend $3.7 billion to take full control of its banking and insurance unit, calling the Japan-centered business a hedge against uncertainty caused by the new coronavirus and global tensions.


SANTANDER UNIT AGREES $550M DECEPTIVE LENDING SETTLEMENT

FT - Kadhim Shubber, Robert Armstrong (2020-05-20)

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VERSABANK TO REPORT SECOND QUARTER FINANCIAL RESULTS AND HOST CONFERENCE CALL/WEBCAST ON MAY 27, 2020

VersaBank - Press Release (2020-05-20)

On May 27, 2020, financial results are expected to be released at approximately 7:00 a.m. (EDT). A conference call to discuss the results is scheduled for 9:00 a.m. (EDT) and will feature a presentation by David Taylor, President & CEO, and other VersaBank executives, followed by a question and answer period.


BANK OF CANADA DATA SHOWS WHY HOUSEHOLD DEBT IS THE BIGGEST VULNERABILITY

Better Dwelling - Stephen Punwasi (2020-05-20)

Canada’s credit growth has been largely a household credit story. In 2000, household debt was just 58% of GDP. By the end of 2019 Q4, that number has hit 100% of GDP. This is amongst the highest of advanced economies. To see how much the Canadian economy has leaned on household debt, the BoC contrasts it to the growth of non-financial and government debt.


FEDS EXPAND ELIGIBILITY FOR CEBA LOANS

Investment Executive - Greg Dalgetty (2020-05-20)

CEBA offers interest-free, partially forgivable loans of up to $40,000 for qualifying businesses. Previously, the program was available only to businesses with payrolls between $20,000 and $1.5 million.


EMPLOYMENT CONTINUES STEEP DROP

BIV - Bryan Yu (2020-05-20)

As expected, Canada suffered another month of record-shattering job loss in April as containment measures to stem the spread of COVID-19 kept workers at home and shuttered workplaces temporarily, leading to a swath of layoffs across the country.


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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.


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.


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.


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CMHC HEAD WARNS HOMEBUYERS TO QUESTION MOTIVES OF THOSE SAYING PRICES WILL RISE

Canada’s economy has been slowing in growth for a few quarters, even before the pandemic. It got much worse after the economic lockdown. Stat Can reported GDP fell 2.11% in Q1 2020, when compared to the previous quarter. Pre-pandemic growth in Q4 2019 also wasn’t very impressive though, coming in at the weakest level since the 2015 oil crash. With the exception of some noise in Q2 2019, GDP growth has been trending lower since the back half of 2017. This view gets even worse if you’re looking at the issue on a per capita basis.


CONSUMER CREDIT PLUNGES IN APRIL THANKS TO COVID-19 RELIEF

Scotiabank said consumer borrowing slowed as government relief efforts such as the Canada Emergency Response Benefit took effect and consumers became more cautious amid economic uncertainty.


MFDA SEEKS TO SPEED UP ACCOUNT TRANSFERS

The self-regulatory organization issued a consultation paper on Monday that seeks industry feedback on the problems firms face regarding client account transfers.



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