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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.


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.


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.


HOW A BROKING PROFESSIONAL CARVED A TECH NICHE FOR HERSELF

Insurance Business - Alicja Grzadkowska (2020-09-23)

“It was in this role that I became involved in our TAM to Epic migration as project lead and trainer on the new system,” said Yelland. “As we settled in to using this new piece of technology, among others, it became apparent that someone was needed to keep on top of these ever-changing tools and ensure that we’re using them to their full capacity.”


AVIVA EXPLORES SALE OF ANOTHER BUSINESS UNIT

Insurance Business - Alicja Grzadkowska (2020-09-23)

Aviva already reported on September 11 that it would sell control of its Singapore business for SG$2.7 billion, and is now exploring a potential sale of its French unit, which could be valued at about €3 billion, according to reports from Bloomberg.


DOES THE WEAK OUTLOOK FOR BONDS MEAN YOU SHOULD AVOID BALANCED ETFS?

G&M - Rob Carrick (2020-09-23)

The outlook for bonds is negative because interest rates are low and probably close to their bottom in the current down cycle for the economy. If rates edge back up even a modest amount, bond prices will decline. For this reason, some market strategists have talked about changes to the 60-40 mix.

 


SORRY INVESTORS, THIS MONTH’S MARKET SELLOFF ISN’T OVER (BUT THESE FIVE THINGS WILL TELL YOU WHEN IT IS)

G&M - Ron Meisels (2020-09-23)

The sell-off at the start of this week was fueled by the triple-witching expiry of the call and put options this past Friday and by continued worries about the economy. Monday’s action brought the SPX near its support level at 3,200; however, it is probably not the end of the decline, even given Tuesday’s partial recovery. Remember that we are not even half way through the September-October period.


JPMORGAN SET TO PAY $1-BILLION IN SPOOFING PENALTY: REPORT

G&M - Reuters (2020-09-23)

JPMorgan Chase & Co. is set to pay $1 billion to resolve market manipulation investigations by U.S. authorities into its trading of metals futures and Treasury securities, Bloomberg News reported on Wednesday, citing people familiar with the matter.


SKIPTHEDISHES CO-FOUNDERS LOOK TO SHAKE UP BANKING AS NEO FINANCIAL HITS THE MARKET

Betakit - Meagan Simpson (2020-09-23)

Neo Financial is a Prairies-based startup created by SkipTheDishes founders Andrew Chau and Jeff Adamson, alongside Kris Read. It is the newest challenger bank entrant into the Canadian financial market and is on a mission to re-imagine everyday banking.


LIBERALS PROMISE TO EXTEND EMERGENCY COVID-19 SUPPORTS, BUILD NATIONAL CHILDCARE PROGRAM IN THRONE SPEECH SOCIAL SHARING

CBC - Kathleen Harris (2020-09-23)

The Liberal government is promising to extend emergency support for Canadians hit by the COVID-19 crisis while building a more resilient economy that empowers women, fights climate change and tackles systemic racism.


SHOPIFY FIRES 2 EMPLOYEES FOR STEALING CUSTOMER DATA FROM UP TO 200 MERCHANTS

CBC - CBC (2020-09-23)

"We don't take these events lightly at Shopify," the company said. "We have zero tolerance for platform abuse and will take action to preserve the confidence of our community and the integrity of our product."


NATURAL RESOURCES SECTOR SUFFERS 'STEEPEST DECLINE EVER' WITH 43,000 JOBS LOST: STATSCAN

FP - Geoffrey Morgan (2020-09-23)

Canada recorded its largest ever drop in natural resources employment in the second quarter, as the COVID-19 pandemic caused commodity prices to plummet and close to 43,000 workers lost their jobs.


AMAZON FACING TRIO OF CANADIAN CLASS-ACTION LAWSUITS ACCUSING IT OF ILLEGALLY FIXING PRICES ON GOODS SOLD ONLINE

FP - Zane Schwartz (2020-09-23)

Amazon is facing three class-action lawsuits accusing the firm of conspiring over the past decade to illegally fix the prices on goods sold online in Canada.  The lawsuits accuse the firm of price-fixing by making any business using its platform to sell their products agree not to sell them for lower prices elsewhere. The suits seek combined damages of over $12 billion. The lawsuits come as Amazon is under investigation by the federal Competition Bureau for its relationship with businesses that sell on its platform, and as it faces scrutiny from regulators around the world over its alleged anti-competitive practices.


MOODY’S, BLACKROCK SEEK ROAD MAP FROM TRUDEAU FOR CANADA’S DEBT

Bloomberg - Estaban Duarte (2020-09-23)

As Justin Trudeau prepares to reveal his new policy agenda, credit rating companies and investors including BlackRock Inc. are looking for his plan for pulling Canada out of a record borrowing binge.


CANADIANS CHARGED IN ALLEGED U.S. PUMP-AND-DUMP BUST

Investment Journal - James Langton (2020-09-23)

The three Canadians — Ottawa resident Michael Wexler, Oakville, Ont.-based attorney Ashmit Patel and a Canadian who lived in Grand Cayman, Andrew McAlpine — are also facing criminal charges brought by the U.S. attorney’s office for the Southern District of California.


CANADIAN BANKS RANKING - WHICH ONE IS THE STRONGEST BANK?

Seeking Alpha - The Dividend Guy (2020-09-23)

Canadian banks are amazing. They have outperformed the Canadian market for the past 5, 10, 15, probably 25 years.


DIGITAL LENDING REQUIRES SPEED AND SIMPLICITY TO WIN BATTLE WITH FINTECHS

CUInsight - Jim Marous (2020-09-23)

Leveraging new forms of data, advanced analytics, and modern technology, financial institutions of all sizes can reduce the cost of delivering products and services and serve a much more comprehensive array of consumers with innovative products and services. In no product area is this more evident than in digital lending.


JPMORGAN TO MOVE $230 BILLION OF ASSETS TO GERMANY AHEAD OF BREXIT

Reuters - Lawrence White, Abhishek Manikandan (2020-09-23)

The shift sees JPMorgan follow similar moves by other big banks in Britain, as regulators in continental financial hubs such as Frankfurt and Dublin urge banks to book their assets locally.


DEUTSCHE BANK TO CLOSE 20% OF DOMESTIC BRANCHES IN CORONAVIRUS SHIFT

G&M - Patricia Uhlig (2020-09-22)

Deutsche Bank plans to shutter one in five branches in its home market in Germany as it seeks to save costs and capitalise on the changing habits of customers during the coronavirus pandemic, an executive said.


DOCUMENTS SUGGEST INTERNATIONAL BANKS DID $2T WORTH OF BUSINESS THEY KNEW WAS SUSPICIOUS

CBC - AP (2020-09-22)

The consortium reported that documents indicate that JPMorgan moved money for people and companies tied to the massive looting of public funds in Malaysia, Venezuela and the Ukraine. The bank also processed more than $50 million in payments over a decade for Paul Manafort, the former campaign manager for President Donald Trump, according to the documents, which are known as the FinCEN Files.


DBRS MAINTAINS CANADA'S AAA RATING, BUT EYES THRONE SPEECH FOR NEW SPENDING PLANS

FP - Colin McClelland (2020-09-22)

The government forecast in July the country’s fiscal deficit will hit $334 billion or 15.9 per cent of gross domestic product by March. Yet, the economy has recovered around two-thirds of jobs lost at the height of the pandemic’s economic impact in March and April while reports show improving retail sales and robust housing market in most regions.


WILKINS' NEXT JOB MAY BE UP IN THE AIR, BUT SHE'S GOT PLENTY TO DO BEFORE LEAVING BANK OF CANADA

FP - Kevin Carmichael (2020-09-22)

Wilkins, who had been elevated from the rank of adviser to second-in-command two years earlier, delivered the opening statement at the central bank’s quarterly press conference as Stephen Poloz, the governor, sat quietly by her side.


BARCLAYS, SOCGEN UK STAFF REVERT TO HOME WORKING AS GOVERNMENT ADVICE SHIFTS

Reuters - Lawrence White, Sinead Cruise 3 MIN READ (2020-09-22)

Of the roughly 1,000 more who had begun to return to work worldwide, hundreds based in Britain will resume working from home, the spokesman said, with others potentially following suit if local advice changes in other countries.


A NEIGHBORHOOD’S RACE AFFECTS HOME VALUES MORE NOW THAN IN 1980

Bloomberg - Brentin Mock (2020-09-22)

In other words, if  an appraiser is calculating  the value of a home in a Black neighborhood by comparing it to houses recently sold around it, then chances are she is comparing it to other Black-owned houses that, because of the legacy of segregation, have handicapped values in the market compared to similar homes in white communities appraised at higher prices. 


A NEIGHBORHOOD’S RACE AFFECTS HOME VALUES MORE NOW THAN IN 1980

Bloomberg - Bloomberg (2020-09-22)

In other words, if  an appraiser is calculating  the value of a home in a Black neighborhood by comparing it to houses recently sold around it, then chances are she is comparing it to other Black-owned houses that, because of the legacy of segregation, have handicapped values in the market compared to similar homes in white communities appraised at higher prices. 


WALL STREET HAS AN OBAMACARE PROBLEM

WSJ - Charley Grant (2020-09-22)

Uncertainty at the Supreme Court means a familiar and unwelcome risk has resurfaced for health-care stocks.


INSURANCE FREEZE SNARLS U.S. SUPPLY CHAINS

WSJ - Julie Steinberg and Joe Wallace (2020-09-22)

An obscure part of the insurance industry that helps commodities flow smoothly around the world is seizing up, presenting another obstacle to the U.S. economy’s fitful recovery.


TASK FORCE REPORT DRAWS CRITICISM

Investment Executive - James Langton (2020-09-22)

The task force’s July report proposes a series of reforms largely designed to stoke growth in the capital markets. In addition to the Ontario Securities Commission’s (OSC) traditional priorities of investor protection and ensuring fair and efficient markets, the task force proposes expanding the regulator’s mandate to include an obligation to foster capital formation and competition.


NEARLY HALF OF CANADIAN REAL ESTATE MARKETS HAVE “MODERATE” VULNERABILITY

Better Dwelling - Daniel Wong (2020-09-22)

Canadian real estate has a moderate level of vulnerability. There are now 7 major markets displaying a moderate level of vulnerability. This is up from 5 during the February report. New markets to join these ranks are Moncton, Halifax, and Ottawa. The only market to see the rating lower back to a “low” degree of vulnerability is Regina.


ACTIVE MANAGERS FAIL TO BEAT THE MARKET AGAIN

FT - Michael Mackenzie (2020-09-22)

Most active fund managers in the US failed to beat the market over the past year, according to another dispiriting report on an industry that often claims it will come into its own during periods of volatility.


UK INSURERS TO BE BLOCKED FROM FAVOURING NEW CUSTOMERS

FT - Oliver Ralph and Matthew Vincent (2020-09-22)

UK regulators are to ban insurance companies from charging existing customers more than new ones for motor and home cover, in a move that could save policyholders £3.7bn over 10 years.


IS CANADA ABOUT TO REPEAT FISCAL HISTORY? DEBT LEVELS SUGGEST THAT’S LIKELY

G&M - John Ibbitson (2020-09-22)

At the same time, life expectancy continues to increase, from 74 years of age for a woman in 1960 to 84 today, to a projected 89 years by 2068. By then, more than a quarter of the Canadian population will be 65 or older.


GOOD NEWS, MORTGAGE SHOPPERS: RATES ARE PLUMBING NEW LOWS. BUT WILL THEY STAY THERE?

G&M - Robert Mclister (2020-09-22)

Central bankers have a simple message for you mortgage shoppers: Interest rates will “remain low for a long time.”


SCOTIABANK CEO CALLS ON OTTAWA TO BOOST CHILD-CARE SUPPORTS

G&M - James Bradshaw (2020-09-21)

The chief executive officer of one of Canada’s largest banks is urging the federal government to “significantly” enhance its supports for parents with children in daycare to allow more women to thrive in the work force.


DIVERSITY EXPERTS URGE FINANCIAL FIRMS TO SET SPECIFIC STAFFING TARGETS

G&M - James Bradshaw (2020-09-21)

Diversity experts are urging Canada’s most prominent financial institutions to build on commitments to combat systemic racism by developing more detailed staffing targets that would help ensure the most marginalized employees don’t get left behind.


HOW CRUSHING HOUSEHOLD AND BUSINESS DEBT IS PUSHING OUR ECONOMY TO A TIPPING POINT

G&M - Patrick Brethour (2020-09-21)

For months, the economy has been pulled along by two lifelines: the unprecedented intervention by Ottawa to prop up households and businesses with income supports and subsidies, and an equally unprecedented move to allow individuals and companies to put off paying their mortgages and taxes. Add to that the uncounted debts amassed by tenants and by businesses that have run up tabs with suppliers.


HEY, WASN’T SAVING MORE MONEY DURING COVID-19 SUPPOSED TO MAKE US FEEL BETTER ABOUT OUR FINANCES?

G&M - Rob Carrick (2020-09-21)

The Canadian Payroll Association’s 12th annual Survey of Working Canadians has detected a bizarre contradiction – increased savings levels have left us more financially stable, but we are much more worried about money.


U.S. CONSUMER SENTIMENT TICKS UP AHEAD OF ELECTION WHILE CURRENT-ACCOUNT DEFICIT SOARS

G&M - Lucia Mutikani (2020-09-21)

U.S. consumer sentiment increased in early September, with Democrats growing more upbeat about the economy’s outlook ahead of the Nov. 3 presidential election while Republicans' optimism waned slightly.


SOCIéTé GéNéRALE TO SELL LYXOR ASSET MANAGEMENT BRANCH: SOURCES

G&M - DAVID FRENCH AND PAMELA BARBAGLIA (2020-09-21)

Société Générale is gearing up to launch the sale of its asset management arm Lyxor as the French lender seeks to shore up its finances after two consecutive quarterly losses, two sources familiar with the matter told Reuters.


RESTAURANTS SEEK HELP IN THRONE SPEECH AMID FORECAST THAT 60 PER CENT WILL FAIL BY NOVEMBER

G&M - Josh O'Kane (2020-09-21)

More than 1,200 restaurants have banded together to ask Ottawa for more robust and long-term pandemic programs, including wage subsidies and rent relief, in next Wednesday’s Speech from the Throne, as they repeat a warning that three in five Canadian restaurants could close for good this fall.


ONLINE THIEVES SCAM TORONTO COUPLE OUT OF MORE THAN $1,000 IN PC OPTIMUM POINTS HACK

CBC - Natalie Kalata (2020-09-21)

"One of the links I clicked, and I still have the text, asked me to enter my PC optimum information."


CMHC TO GET NAME CHANGE TO REFLECT CHANGING FOCUS AWAY FROM JUST HOME OWNERSHIP

CBC - Jordan Press (2020-09-21)

The head of the Crown corporation says the decades-old name overemphasizes the financing of home ownership and does not do enough to highlight housing affordability.


ONE IN FOUR CREDIT-CARDHOLDERS COULDN'T MAKE PAYMENTS IN MAY AND JUNE, SURVEY SAYS

FP - CP (2020-09-21)

One in four credit-cardholders couldn’t make payments in May and June, survey says


RENTS IN CANADA’S TWO MOST EXPENSIVE CITIES ARE DROPPING AT RECORD RATES

FP - Pamela Heaven (2020-09-21)

With immigration stalled during the COVID-19 pandemic, rental markets in some of Canada’s biggest and most expensive cities have seen record declines.


HSBC SHARES SINK TO 25-YEAR LOW IN HK, STANCHART SAGS OVER DIRTY MONEY SCANDAL

Reuters - Alun John, Sumeet Chatterjee (2020-09-21)

HSBC HSBA.L and Standard Chartered STAN.L Hong Kong shares dropped on Monday after media reports that they and other banks moved large sums of allegedly illicit funds over nearly two decades despite red flags about the origins of the money.


GOLD INVESTORS TAKE AIM AT MINERS WITH RETURNS FALLING SHORT

Bloomberg - Steven Frank (2020-09-21)

A coalition of gold investors, including firms backed by billionaires John Paulson and Naguib Sawiris, is urging changes at miners as performance “continues to fall short” in some areas even as prices rise.


DON'T OVERTHINK CHINA'S STRENGTHENING YUAN

Bloomberg - Daniel Moss (2020-09-21)

China may be the only major economy to notch growth at all in 2020, quite the reversal after the onset of Covid-19 triggered a historic collapse early in the year. This revival has been reflected in the yuan, Asia's best performing currency this quarter. There’s good reason to think it isn’t a fluke.


AVOIDING FUND REDEMPTION NIGHTMARES

Investment Executive - James Langton (2020-09-21)

In the wake of the unprecedented market stress prompted by the Covid-19 outbreak, regulators have been on guard for funds unable to meet investor redemption demands. And now, the Canadian Securities Administrators (CSA) are issuing new guidance for fund managers on dealing with critical liquidity risk.


JUDGE ORDERS SEQUOIA BANKRUPTCY TRUSTEE TO PAY LEGAL COSTS OF PERPETUAL ENERGY CEO

G&M - ALEXANDRA POSADZKI AND JEFFREY JONES (2020-09-21)

A judge has ordered the trustee of bankrupt Sequoia Resources Corp. to pay Perpetual Energy Inc. chief executive Susan Riddell Rose nearly $600,000, saying the trustee’s vice-president engaged in misconduct by failing to adequately investigate any involvement she may have had in the insolvency before suing her.


CMHC STILL SEES WEAKNESS FOR REAL ESTATE MARKET AHEAD

G&M - Rachelle Younglai (2020-09-21)

The federal housing agency still expects a steep decline in home prices, as the rise in novel coronavirus cases leads provinces to restrict activity and threatens the country’s economic recovery.


EQUITABLE BANK COMPLETES $200 MILLION DEPOSIT NOTE ISSUE

Equitable - Press Release (2020-09-21)

The Deposit Note was priced at 150 basis points over comparable term Government of Canada bonds, and will carry a coupon of 1.774%.  The bond was supported by a broad investor base expressing record interest in the purchase of Equitable Bank deposit notes.  The Deposit Note ranks equally and ratably with all present and future unsecured and unsubordinated liabilities of the Bank.  It is not eligible for Canada Deposit Insurance Corporation insurance.


TSX JOINS GLOBAL STOCK MARKET SELL OFF AS CORONAVIRUS FEARS REFUSE TO GO AWAY

CBC - Pete Evans (2020-09-21)

Bank stocks had sharp losses Monday morning after a report alleged that several of them continue to profit from illicit dealings with criminal networks despite being previously fined for similar actions.


NEW HOME PRICES SEE BIGGEST MONTHLY JUMP IN 3 YEARS AS LUMBER PRICES SOAR

CBC - CBC (2020-09-21)

The data agency says homebuilders expect the record high lumber prices this year will most likely add an extra $5,000 to $10,000 to the cost of a single family house.


RBC ONLINE BANKING, TRADING INACCESSIBLE DUE TO 'TECHNICAL ISSUES'

FP - FP (2020-09-21)

Irate clients of Canada’s biggest bank took to Twitter to complain about their inability to access their accounts, execute trades on the bank’s website or app, or reach customer service agents, with some pointing out that this was not the first outage experienced by the bank this year.


FEWER INVESTORS DEPEND ON ADVISORS TO PURCHASE MUTUAL FUNDS: SURVEY

Investment Executive - Fiona Collie (2020-09-21)

The survey, released by Pollara Strategic Insights and the Investment Funds Institute of Canada (IFIC) on Monday, found that only 75% of mutual fund investors said they work with a financial advisor, compared with about 90% who said the same in 2016.


SUPPORT LACKING FOR INVESTOR ADVOCATES

Investment Executive - Rudy Mezzatta (2020-09-21)

In-house committees can help regulators identify issues that affect investors and provide guidance, says Neil Gross, president of Toronto-based Component Strategies Consulting and chair of the Ontario Securities Commission’s (OSC) Investor Advisory Panel (IAP). However, independent advocates “act as a counterweight to industry groups” and “shine a public spotlight on investor protection issues,” Gross says.


CANADA’S LARGEST REAL ESTATE MARKETS SEE PERMANENT RESIDENT DECLINES ACCELERATE

Better Dwelling - Stephen Punwasi (2020-09-21)

The number of permanent residents admitted to Toronto is seeing declines become larger. There were 4,450 permanent residents admitted in July, down 64.0% from the same month last year. Year-to-date there were 69,825 people admitted, down 40.82% compared to the same period last year. July’s decline is almost 50% larger than June, so the declines are getting much larger. The year-to-date rate of decline is also smaller, confirming July’s acceleration. The drops aren’t getting better, they’re getting worse. 


TRUDEAU POISED TO ANNOUNCE THREE-PILLAR ECONOMIC RECOVERY PLAN

Bloomberg - Kait Bolongaro (2020-09-21)

Prime Minister Justin Trudeau is set to unveil a new plan to try to contain the spread of Covid-19 and recharge Canada’s pandemic-battered economy, according to a senior government official.

The broad themes in this week’s so-called Throne Speech -- which outlines his government’s priorities -- will be a focus on the immediate task of tackling the coronavirus, a medium-term commitment to support Canadians through the pandemic and a “resiliency agenda” to spur recovery and reconstruction.   Trudeau’s agenda won’t establish budget targets, which will be left for Finance Minister Chrystia Freeland to detail later this year in a fiscal update, the official said, speaking on condition they not be identified because the document isn’t yet public. Wednesday’s speech is one of the most anticipated in Trudeau’s five years in power, with questions mounting over how his governing Liberals plan to navigate their next policy steps amid surging Covid-19 case numbers and soaring budget deficits.


HOUSING AGENCY STANDS BY FORECAST FOR SHARP PRICE DROP IN CANADA

Bloomberg - Shelly Hagan (2020-09-21)

Canada’s federal housing agency is sticking to its pessimistic forecast for the future of the country’s housing market, citing “tremendous” risks from the Covid-19 pandemic.

Canada Mortgage and Housing Corp. forecast in May that average prices would fall between 9% and 18% from pre-pandemic levels before beginning to recover in the first half of 2021. Chief Economist Bob Dugan reiterated that forecast, though he cautioned that it’s difficult to predict the “peaks and troughs” and there are many moving parts. “When I say I stand by our forecasts, it’s really with respect to what are the broad trends we expect moving forward,” Dugan said Monday on a conference call with reporters. “When I look at the housing market there are a tremendous number of risks.” Canada’s housing market has not only defied expectations of a slowdown, it’s booming, even as the economy suffers from the deepest downturn since the Great Depression. Demand for homes combined with tight inventory levels and historically low interest rates are driving gains.  


TREASURY HAS $541 BILLION OF DIRTY LITTLE SECRETS

Bloomberg - Shuli Ren (2020-09-21)

More than 70% of Americans hold unfavorable views of China, a historical high, as many find fault in its handling of Covid-19. Yet that hasn’t stopped Americans from staking their retirements on the nation through their mutual funds. U.S. residents have amassed roughly $700 billion worth of mainland stock over the years, mostly in the technology sector. 


ONE OF FINANCE’S FEW BLACK CEOS THRIVES WHERE BIG BANKS FLED

Bloomberg - Jeff Green and Peter Robison (2020-09-21)

Darrin Williams thinks it was probably a Fox News interview he did in early April that caught the eye of the White House and got him invited later that month to a videoconference with President Trump, his daughter Ivanka, and other top advisers. The pandemic was raging, and Trump had convened a lineup of financial luminaries to discuss how to save the economy. Treasury Secretary Steven Mnuchin took notes as Brian Moynihan, chief executive officer of Bank of America Corp., and Goldman Sachs Group Inc. CEO David Solomon opened the conversation. Then came Williams, who runs Southern Bancorp Inc. in Little Rock.


EU COULD FORCE APPLE TO OPEN UP IPHONE NFC FUNCTIONALITY

Finextra - Finextra (2020-09-21)

Apple Pay is the only mobile payment service that may access the NFC 'tap and go' technology embedded on iOS mobile devices for payments in stores, a process that has been damned by banks in a number of jurisdictions for preventing competition from their own proprietary apps.


EUROPEAN BANKS LOAD UP ON GOVERNMENT BONDS, RAISING CONCERNS OVER ‘DOOM LOOP’

FT - Tommy Stubbington (2020-09-21)

European banks have loaded up on more than €200bn of their own governments’ bonds since the start of the Covid-19 pandemic, in a move that could reawaken fears about the sector’s growing stockpiles of risky sovereign debt.


UK HEDGE FUND HIT BY OIL SLIDE AND LOCKDOWN EFFECTS

FT - Laurence Fletcher (2020-09-18)

A UK hedge fund set up by the former head of Canyon Capital’s London office is suffering its toughest year yet, say people familiar with its performance, joining a number of managers that were hit by market turmoil and have failed to recover.


FED MULLS EXTENSION OF BANK DIVIDEND AND BUYBACK CURBS

FT - James Politi (2020-09-18)

The US Federal Reserve is considering whether to extend restrictions on dividends and share buybacks that it imposed on large banks after determining that the pandemic could trigger up to $700bn in losses for the lenders. The US central bank had acted in June to ban share buybacks by the banks and cap their dividends for the third quarter. It said at the time that the large banks were “sufficiently capitalised” but that “heightened economic uncertainty” meant they should act “to preserve their capital levels in the third quarter”.


REVOLUT SAGA SPOTLIGHTS CONCERNS OVER DIGITAL BANKS’ SERVICE STANDARDS

FT - Lindsay Cook (2020-09-18)

Being repaid the £150,000 in dollars and euros that he had lent to a relative 10 years ago should have been good news for Richard Walker. Instead, it was the beginning of an eight-week nightmare this summer, when he was unable to find out why the money had not arrived in his account. 


FED DETAILS NEW ROUND OF BIG-BANK STRESS TESTS

WSJ - Andrew Ackerman (2020-09-18)

The Federal Reserve will analyze large banks’ ability to withstand two coronavirus-related recession scenarios as part of a second round of stress tests later this year, the central bank said.


FINTECH SECTOR FACES "EXISTENTIAL CRISIS" SAYS MCKINSEY

Finextra - Finextra (2020-09-17)

After growing more than 25% a year since 2014, investment into the sector dropped by 11% globally and 30% in Europe in the first half of 2020, says McKinsey, citing figures from Dealroom. In July 2020, after months of Covid-19-related lockdowns in most European countries, the drop was even steeper, 18% globally and 44% in Europe, versus the previous year.


MARKETS CAN COUNT ON ONE THING: LOW INTEREST RATES WILL STAY FOR A WHILE

G&M - Tim Shufelt (2020-09-17)

Whatever surprises the economy has in store over the next few years, financial markets can count on one constant source of support – rock-bottom interest rates.


CIBC EXECUTIVE DEEPAK KHANDELWAL LEAVING BANK NEXT MONTH

G&M - James Bradshaw (2020-09-17)

Canadian Imperial Bank of Commerce executive Deepak Khandelwal is leaving the bank next month, three years after CIBC paid a steep price to poach him from the telecommunications sector.


COUCHE-TARD FOUNDERS TO LOSE SPECIAL VOTING RIGHTS

G&M - Nicolas Van Praet (2020-09-17)

Alimentation Couche-Tard Inc. will let the sun set on the special voting rights held by its four founders.


FEDERAL RESERVE SIGNALS PLAN TO KEEP U.S. INTEREST RATE NEAR ZERO UNTIL 2023

CBC - AP (2020-09-17)

The U.S. Federal Reserve adjusted its inflation target to seek price increases above two per cent annually, a move that will likely keep interest rates low for years to come.


MANULIFE TO OFFER COVID TRAVEL INSURANCE THAT COVERS MEDICAL CARE, QUARANTINE AND EMERGENCY TRANSPORT HOME

FP - Barbara Schecter (2020-09-17)

Business and leisure travel remains sluggish more than six months into the pandemic as COVID-19 continues to spread around the world in places including Canada, where cases are once again on the rise.


HOW TO GET AROUND CANADA'S HARSH NEW MORTGAGE RULES

FP - Jeliette Baxter (2020-09-17)

So even if the CMHC thinks you’re a bad bet, you’ll still find a range of lenders that want your business.


SOCGEN SAYS NOW SEES AN 80% PROBABILITY OF A NO DEAL BETWEEN UK AND EU

Reuters - Staff (2020-09-17)

“With PM Johnson likely to continue his high-stakes negotiating strategy, we no longer think a deal can be struck before year-end. We now see an 80% probability of a No Deal,” they said in a note.


BOJ HOLDS FIRE, SEES ECONOMIC GLOOM LIFTING SLIGHTLY

Reuters - Leika Kihara, Tetsushi Kajimoto (2020-09-17)

The Bank of Japan kept monetary policy steady on Thursday and slightly upgraded its view on the economy, suggesting that no immediate expansion of stimulus was needed to combat the coronavirus pandemic.


ECB OFFERS BANKS MORE CAPITAL RELIEF TO COPE WITH PANDEMIC

Bloomberg - Nicholas Comfort and Alexander Weber (2020-09-17)

The coronavirus pandemic “has resulted in an ongoing need for a high degree of monetary policy accommodation, which in turn requires the undeterred functioning of the bank-based transmission channel of monetary policy,” the Governing Council said in an opinion laying the ground for the decision.


WHY LIQUIDITY IS A SIMPLE IDEA BUT HARD TO NAIL DOWN

Bloomberg - Stephen Spratt (2020-09-17)

Think of it as the opposite of friction. An asset’s liquidity is a measure of how easily its value can be converted or transferred into another form. Cash is the ultimate liquid asset. Freeing up the value of less-liquid assets takes time or money or both – paying for something by selling a car isn’t as easy, quick or cheap as using a $5 bill to buy coffee. But liquidity is about more than individual assets.


WEALTH MANAGEMENT REMAINS A STRENGTH FOR BANKS: MOODY’S

Investment Executive - James Langton (2020-09-17)

Stable income, rising wealth a bright spot for big global investment firms


FORESTS A GROWING ISSUE FOR FINANCIALS: FITCH

Investment Executive - James Langton (2020-09-17)

Banks, institutional investors facing deforestation pressures


CANADIAN SENIORS HAVE RACKED UP OVER $4.3 BILLION IN REVERSE MORTGAGE DEBT

Better Dwelling - Daniel Wong (2020-09-17)

Canadian seniors are hammering away at their home equity at a very fast pace. Reverse mortgage debt reached $4.30 billion in July, up 0.62% from the month before. This represents an increase of 13.63% when compared to the same month last year. Yes, that’s huge growth and a new record all-time high. 


US MONEY TRANSFER FIRMS HAIL MULTI-STATE COMPLIANCE INITIATIVE

Finextra - Finextra (2020-09-17)

Known as MSB Networked Supervision, the new regime will apply to 78 of the nation’s largest payments and cryptocurrency companies that combined move more than $1 trillion a year in customer funds.


MASTERCARD LAUNCHES CBDC TESTING PLATFORM FOR CENTRAL BANKS

Finextra - Finextra (2020-09-17)

Central banks around the world are warming to the concept of creating their own digital currencies. A recent survey from the Bank for International Settlements found that 80% are working in some way on CBDCs, while 40% have moved beyond conceptual research to experimentation.


SWIFT OUTLINES STRATEGY TO EXPAND BEYOND FINANCIAL MESSAGING

Finextra - Finextra (2020-09-17)

The co-operative is building a new digital platform that will use APIs and cloud technology to provide a set of common processing services that banks have historically invested in individually. New and extensive data capabilities will enable the pre-validation of essential data, fraud detection, data analytics, transaction tracking and exception case management.


NUVEI STOCK SOARS AFTER LARGEST TECH IPO IN TSX HISTORY

G&M - Sean Silcoff (2020-09-17)

Montreal payments-processing company Nuvei Corp. soared in its debut as a public company Thursday after raising US$700-million in the largest technology initial public offering ever on the Toronto Stock Exchange.


BANK OF CANADA SENIOR DEPUTY GOVERNOR CAROLYN WILKINS WON’T SEEK A SECOND TERM

G&M - DAVID PARKINSON (2020-09-17)

Carolyn Wilkins, the highest-ranking woman in the Bank of Canada’s history who was passed over for the top job of governor this year, has decided to leave the bank when her term as senior deputy governor ends next May.


REGULATORS CRACK DOWN ON FUNDS SOLD BY DISCOUNT BROKERS

G&M - Clare O'Hara (2020-09-17)

After decades of controversy, discount brokerages will be banned from selling mutual funds that have charged investors billions of dollars in fees for advice they did not receive.


MACKENZIE, GREAT-WEST BUY MAJOR STAKE IN PRIVATE EQUITY INVESTOR NORTHLEAF

G&M - Mark Rendell, Clare O'hara (2020-09-17)

Mackenzie Financial Corp. and Great-West Lifeco Inc. are buying a major stake in private-equity firm Northleaf Capital Partners in a move to bring alternative investments, such as infrastructure and private credit, to retail clients.


CIBC CUTS PORTFOLIO MANAGERS, ANALYSTS, TRADERS IN DRIVE FOR 5% REDUCTION IN STAFF

FP - Paula Sambo, Michaael Bellusci (2020-09-17)

Canadian Imperial Bank of Commerce has cut a number of portfolio managers, analysts and traders as part of a plan to reduce staff by almost 5 per cent, according to people familiar with the matter.


NEW DATA SHOWS DRAMATIC DECLINE IN CANADIAN AIRBNB BOOKINGS IN SUMMER 2020

FP - Vanmala Subramaniam (2020-09-17)

Short-term-rental bookings in Canada’s three largest cities declined dramatically for the peak summer travel months, according to new data obtained by The Logic, showing just how severe and prolonged the pandemic’s impact has been on urban tourism and the companies that depend on it.  For Airbnb, a behemoth in the online-vacation-rental space, the sharp declines in three of its biggest Canadian markets speak to the challenges facing the company as it gears up to go public after laying off thousands of workers amid months of tanking revenues.


NEW ZEALAND TO REQUIRE FINANCIAL FIRMS REPORT CLIMATE CHANGE RISKS

Reuters - Melanie Burton (2020-09-17)

New Zealand will be the first country in the world to require the financial sector to report on climate risks, its minister for climate change James Shaw said on Tuesday.


EX-JPMORGAN TRADER SENTENCED TO PRISON FOR CURRENCY RIGGING

Reuters - Jonathan Stempel (2020-09-17)

A former JPMorgan Chase & Co JPM.N foreign exchange trader was sentenced on Thursday to eight months in prison, following his Nov. 2019 conviction for conspiring with traders at other banks to rig currency trades.


POWELL LAID THE BLUEPRINT FOR TECH’S EVENTUAL WRECK WITH QE PUNT

Bloomberg - Katherine Greifeld and Sarah Ponczek (2020-09-17)

Big tech’s market-leading days might be numbered thanks to Federal Reserve Chairman Jerome Powell.


BANKS’ JOB CULL RETURNS WITH CUTS TOPPING 60,000 IN 2020

Bloomberg - Nicholas Comfort (2020-09-17)

More than 30 lenders -- from Europe, North America, Asia and Africa -- are behind the planned reductions. The actual total is probably higher because many banks eliminate staff without disclosing their plans. The banks cited a need to reduce expenses to offset the cost of credit souring during the pandemic as well as spending to comply with stricter regulation and invest in digital technology.


LAGARDE LEVERAGES VIRUS TO PRESS FOR GREENER MONETARY POLICY

Bloomberg - Jana Rando (2020-09-16)

The pandemic could easily have derailed Christine Lagarde’s plan to enlist the European Central Bank in the fight against climate change. Only she won’t let it. “It’s a topic that I am very keen about, which I believe has a systemic dimension,” she told journalists after the ECB’s latest monetary policy meeting on Sept. 10.


CANADIAN HOME SALES CLIMB AGAIN, SET RECORD FOR AUGUST: CREA

Investment Executive - CP (2020-09-16)


FEDERAL RESERVE TO MEET AFTER SHARP CHANGES TO ITS OUTLOOK

Investment Executive - Christopher Rugaber (2020-09-16)

But the statement that Fed policymakers release Wednesday is expected to contain revisions that reflect the sweeping changes that Fed Chair Jerome Powell announced late last month in how the central bank operates. The Fed will also issue its quarterly economic projections, which will for the first time include estimates for growth, unemployment and the Fed’s benchmark interest rate for 2023.


MIXED RESULT IN BRITISH COURT RULING IN BUSINESS INTERRUPTION COVERAGE DISPUTE

Canadian Underwriter - Greg Mechbach (2020-09-16)

In a test case brought by the British regulator, the British court looked at more than 21 business interruption policy wordings that insurers said do not cover the specific circumstances of the business closures in Britain related to COVID-19. The disease was declared a pandemic Mar. 11 by the World Health Organization, resulting in widespread mandatory closures in Britain, Canada and other jurisdictions. Many insurers are being sued after denying BI coverage.


AON’S TAKE ON THE STATE OF THE CANADIAN P&C INSURANCE MARKET

Canadian Underwriter - Jason Contant (2020-09-16)

The first quarter of 2020 saw a continuation and acceleration of the Canadian risk and insurance market shift that took hold in 2019, with pricing increases, withdrawn capacity in several key lines of business, tightened terms, and an increasingly rigorous underwriting process.


HONG KONG: SUN LIFE CONFIDENT DESPITE POLITICAL INSTABILITY

Insurance-Portal.ca - Dean Connor (2020-09-16)

  Sun Life CEO comments on the impact of the political crisis on the insurer’s business in Hong Kong.


CANADIAN IMMIGRATION RESUMES BIG DECLINES, AS PERMANENT RESIDENT NUMBERS PLUMMET

Better Dwelling - Stephen Punwasi (2020-09-16)

Permanent residents arriving in Canada are back to making steep declines. There were 13,645 permanent residents admitted in July, down 60.29% from the same month a year before. Year-to-date the country has seen 220,500 people admitted, down 38.25% compared to the same period last year. June showed improvements in the trend, but those rolled back in the latest numbers.


OSFI LAUNCHES CONSULTATION ON TECHNOLOGY RISKS IN THE FINANCIAL SECTOR

OSFI - Press Release (2020-09-16)

Today the Office of the Superintendent of Financial Institutions (OSFI) launched a three-month consultation with the publication of a discussion paper, Developing financial sector resilience in a digital world. The paper focuses on risks arising from rapid technological advancement and digitalization, as these trends impact the stability of the Canadian financial sector.


CANADA TO UNVEIL RETALIATORY MEASURES AGAINST UNITED STATES THIS WEEK IN ALUMINUM DISPUTE

G&M - Steven Chase (2020-09-15)

Canada this week will unveil the retaliatory measures it’s taking against the United States after President Donald Trump slapped tariffs on Canadian aluminum in August.


DJURFELDT JOINS CIBC WOOD GUNDY

Investment Executive - Rudy Mezzetta (2020-09-15)

Djurfeldt resigned from his previous position as executive vice president, senior investment advisor with Wellington-Altus Private Wealth in June after joining the Winnipeg-based independent brokerage in September 2019. At Wellington-Altus, he was responsible for recruiting established advisors and advisory teams in Eastern Canada.


WHY WATER DAMAGE CLAIMS COST THE INDUSTRY MORE EACH YEAR THAN SEVERE WEATHER CLA

Canadian Underwriter - Adam Malik (2020-09-15)

Between 2009 and 2017, the Canadian P&C industry spent $1.8 billion on flood claims alone, Pittendreigh points out. In contrast, the industry spent just $400 million on flood claims between 1983 and 2008. That’s a 400% increase in the last eight years compared to the previous 25.


CANADIAN HOUSEHOLD DEBT TO INCOME TEMPORARILY PLUMMETS DUE TO GOVERNMENT SUPPORT

Better Dwelling - Stephen Punwasi (2020-09-15)

Canadian households were in the biggest recession since the Great Depression, but it looks like an economic boom. Statistics Canada (Stat Can) data shows the household debt to income ratio dropped in Q2 2020. The ratio had grown to notoriously high levels in the past decade, which were wiped out overnight. The national statistics agency said this is partly due to government support, which means the declines are likely temporary.


THE SHOPIFY SNUB: BAY STREET LEFT OUT AGAIN AS WALL STREET BANKS NAB $2-BILLION-PLUS UNDERWRITING ROLES

G&M - Sean Silcoff (2020-09-15)

Canada’s largest company once again appears to be bypassing Canadian-based underwriters for its latest capital raise.


CANADIAN HOMES SALES JUMPED IN AUGUST, PRICES CONTINUE TO CLIMB

G&M - Rachelle Younglai (2020-09-15)

Canadian home sales and prices hit record highs in August, as low borrowing costs and an easing of pandemic restrictions continued to fuel housing demand.


BANK OF CANADA TO REDUCE CANADA TREASURY BILL PURCHASES, CITING IMPROVED MARKET CONDITIONS

G&M - DAVID PARKINSON (2020-09-15)

For the second time in two months, the Bank of Canada has slashed its buying of federal government treasury bills and similar short-term provincial debt as it continues to scale back some of the emergency market supports it put in place to lean hard against the COVID-19 crisis.


IGM CHIEF EXECUTIVE JEFF CARNEY STEPS DOWN AFTER ALZHEIMER’S DIAGNOSIS

G&M - Clare O'Hara (2020-09-15)

IGM Financial Inc.'s chief executive officer Jeff Carney has departed the company for health reasons, handing the reins over to former Scotiabank executive James O’Sullivan.


U.S. BACKS DOWN ON ALUMINUM TARIFFS DIRECTED AT CANADA

G&M - Steven Chase (2020-09-15)

The U.S. government has axed controversial tariffs on Canadian aluminum first announced in August, but also warned it would re-impose them if shipments to the United States exceed specific volumes in the months ahead.


INEQUALITY IS NOT THE BANK OF CANADA’S PROBLEM TO SOLVE

G&M - KONRAD YAKABUSKI (2020-09-15)

Bank of Canada Governor Tiff Macklem last week provided a further illustration of the disturbing mission creep under way at the central bank by wading into the political debate over income inequality.


WHY THE BANK OF CANADA NEEDS A DUAL MANDATE TO ALSO PURSUE MAXIMUM EMPLOYMENT

G&M - Diane Bellemare (2020-09-15)

Many economists, including myself, believe that it is time to broaden the Bank of Canada’s mandate to include the pursuit of maximum levels of employment or full employment. It’s not a new idea. Australia, the United States and New Zealand have legislated that the mandate of their central banks is both price stability and full employment.


AVERAGE CANADIAN HOUSE PRICE SOARED 18% IN PAST YEAR, CREA SAYS

CBC - Pete Evans (2020-09-15)

Canada's housing market continued its improbable run in August, as average prices jumped by almost 20 per cent from where they were a year earlier, and the number of homes sold shattered the monthly record.


SEWAGE KEEPS PARISIAN BANKING ELITE IN HERMèS TIES

Reuters - Rob Cox, Christopher Thompson (2020-09-15)

At first glance, the deal is small with Veolia offering 2.9 billion euros for a stake in its quarry held by energy group Engie, in which the French state holds 24%. But it marks the opening salvo in a possible takeover of 10 billion euros Suez. Each of the three has hired consiglieri to crunch numbers, leaving left-outs to scramble - in a best-fees scenario - alternatives for Suez. They could possibly arise from infrastructure or private equity funds.


CANADIAN BANKS SEE BORROWERS RESUMING PAYMENTS AFTER DEFERRALS

Bloomberg - Kevin Orland (2020-09-15)

At Bank of Nova Scotia, 99% of mortgage borrowers whose deferrals have expired are current on their payments, the lender said in a statement. Scotiabank now has C$39 billion ($30 billion) of deferral exposure, down from C$41.5 billion as of July 31, and expects the “vast majority” of its remaining balances to expire this quarter, Chief Executive Officer Brian Porter said in the statement.


ARE MORTGAGE DEFERRALS KEY TO SUSTAINING CANADA’S FINANCIAL STABILITY THROUGH THE PANDEMIC? THE BANK OF CANADA THINKS SO

G&M - DAVID PARKINSON (2020-09-14)

As the Bank of Canada fretted over bloated household debts for the better part of the past decade, its biggest fear was that stretched-to-the-limit mortgage holders would collapse under the weight of the next major economic shock.


GOVERNMENTS MUST FINANCE ECONOMIC RECOVERY, EUROPEAN CENTRAL BANK CHIEF SAYS

G&M - Reuters (2020-09-14)

“Confidence in the private sector rests to a very large extent on confidence in fiscal policies,” Ms. Lagarde said in a speech. “Continued expansionary fiscal policies are vital to avoid excessive job shedding and support household incomes until the economic recovery is more robust.”


WHAT IF WE NEVER REPAY THE NATIONAL DEBT?

G&M - Michael Smart (2020-09-14)

As Ottawa prepares for a Throne Speech and a fall economic recovery plan under new Finance Minister Chrystia Freeland, the country is at a crossroads. How will we respond?


THE ‘SUPPLY CRISIS’ IN CANADA’S HOUSING MARKET ISN’T BACKED UP BY THE EVIDENCE

G&M - Josh Gordon (2020-09-14)

If you follow the housing debates in Toronto and Vancouver, you’ll have undoubtedly heard the claim that the affordability challenges facing both cities are the result of supply problems. Common complaints include a lack of new housing, burdensome regulation and flawed zoning.


BIG BANK CEOS SEE FINTECH THREAT 'DIMINISHING' DESPITE PANDEMIC

FP - Geoff Zochodne (2020-09-14)

Shopify provides loans and processes payments, qualifying the Ottawa-based e-commerce giant as one of the growing number of tech firms that have in recent years been encroaching on the financial-services turf the banks have traditionally owned.


CREDIT SUISSE CEO URGES END OF CANTONAL BANKS' PRIVILEGES

Reuters - Reuters (2020-09-14)

“I consider cantonal banks with implicit or explicit state guarantees and tax privileges a major market distortion in the Swiss private sector,” he told weekly Schweiz am Wochenende in an interview published on Saturday.


DANSKE BANK ADMITS IT KNEW OF ERRONEOUS DEBT COLLECTION FOR YEARS

Reuters - Reuters (2020-09-14)

Denmark’s financial watchdog last week launched an inquiry into how Danske had wrongly collected debt from up to 106,000 customers since 2004 due to IT system errors.


NEW HOME CONSTRUCTION IN CANADA HITS ITS HIGHEST SINCE 2007

Bloomberg - Theophilos Argitis (2020-09-14)

Housing starts surged to 262,396 units in August on an annualized basis, up 6.9% from an already elevated 245,425 units a month earlier, Canada Mortgage and Housing Corp. said Wednesday in Ottawa. The highest monthly total since September 2007 was powered by new construction in Toronto and Vancouver, particularly multiple units like condos.


GOLDMAN, DEUTSCHE SAY U.S. STOCK SELLOFF MAY BE CLOSE TO AN END

Bloomberg - Joanna Ossinger (2020-09-14)

The recent pullback in U.S. stocks could be close to an end if history is a guide, according to strategists at Goldman Sachs Group Inc. and Deutsche Bank AG.


CENTURY 21 WANTS TO MOVE COVID-19 INSURANCE FIGHT TO BANKRUPTCY COURT

WSJ - Soma Biswas (2020-09-14)

Century 21, which blamed its decision to shut down on its property insurers, wants to bring the legal fight over Covid-19 coverage to bankruptcy court.


DEUTSCHE’S COMPLIANCE PROCEDURES LIMIT DAMAGE OF SANCTIONS SETTLEMENT

WSJ - Mengqi Sun and Jack Hagel (2020-09-14)

A U.S. unit of Deutsche Bank paid a fraction of the maximum penalty it could have faced to settle alleged sanctions violations, as the Treasury Department pointed to the bank’s compliance efforts and cooperation as mitigating factors.


U.S. CONSUMER PRICES UP 0.4% IN AUGUST

Investment Executive - Martin Crutsinger (2020-09-14)

Other big gains were seen in household furnishings which jumped 0.9%, the largest monthly increase since February 1991, with the prices of furniture, bedding and appliances all showing big gains.


KEY HOUSEHOLD DEBT-TO-INCOME RATIO FELL IN Q2

Investment Executive - CP (2020-09-14)

The amount Canadians owe relative to their income fell in the second quarter as government aid to help offset the economic impact of the COVID-19 pandemic helped lift disposable income rose while the amount of debt was relatively unchanged.


THE NEXT BIG STEP IN ACCELERATING REAL-TIME DATA EXCHANGE

Canadian Underwriter - Jason Contant (2020-09-14)

“If there was a way for the broker to use their own system that connected to the carrier system so that all the information is correct and updated everywhere and they didn’t have to go into multiple systems, they wouldn’t have to spend as much money on stuff that doesn’t generate value,” he said. “Secondly, they could invest that time working with their clients or generating new clients. Not having connectivity generates a lot of inefficiencies, having it gets rid of those and actually benefits the end consumer.”


HOW MUCH THESE FOUR ALBERTA CATS COST INSURERS IN 2020

Canadian Underwriter - Greg Meckbach (2020-09-14)

A hailstorm June 13, affecting mainly northeast Calgary, topped the list as it caused about $1.2 billion in insured damages.


INDUSTRY NEEDS ‘TO FIND A SOLUTION’ TO THIS CLAIMS ADJUSTING PROBLEM

Canadian Underwriter - Greg Mechbach (2020-09-14)

“It’s generally understood that it’s easier to bring U.S. adjusters up to Canada than it is to bring adjuster across provincial boundaries in the country due to interprovincial trade barriers. We have been talking about ripping these down for many many years, and nothing really becomes of it,” said Glenn McGillivray, managing director of the Institute for Catastrophic Loss Reduction.


SANTANDER SPINS OUT FINTECH VC; DOUBLES ALLOCATED FUNDS TO $400M

Finextra - Finextra (2020-09-14)

Now called Mouro Capital, the fund will manage the existing portfolio of Santander Innoventures, which has invested in 36 startups in Europe and the Americas since its launch in 2014.


MACHINE LEARNING BEST PRACTICES IN FINANCIAL SERVICES

Finextra - Finextra (2020-09-14)

This whitepaper outlines security and model governance considerations for financial institutions using machine learning applications. It illustrates how you can create a secure machine learning environment on AWS and use best practices in model governance based on your organization’s risk tolerance, integration with existing governance, and regulatory expectations.


UK BANKS SIGN FINTECH PLEDGE

Finextra - Finextra (2020-09-14)

Launched by Tech Nation with support from HM Treasury, the Fintech Pledge is designed to boost the sector by helping to establish efficient and transparent commercial partnerships between banks and fintech firms.


EDC WON’T DISCLOSE REVIEW FINDINGS AFTER FINDEV CEO PAUL LAMONTAGNE DEPARTS

G&M - Geoffrey York (2020-09-14)

Canada’s export bank says it will not disclose the findings of an internal review of business dealings by Paul Lamontagne, chief executive of its development finance subsidiary, who left last week after less than three years in the post.


CANADIANS ARE PAYING DOWN DEBT DURING COVID-19 — BUT A 'TSUNAMI' OF BANKRUPTCIES COULD BE COMING SOCIAL SHARING

CBC - Pete Evans (2020-09-14)

Prior to the pandemic's start in March, consumer insolvencies had been growing at a double-digit pace since the start of 2019 as the system worked through a decade of debt fuelled by a low rate that Terrio said people "binged" on "and kicked the can down the road."

 
 


FINTECH BIDS FOR WIRECARD'S AUS AND NZ BUSINESSES

Finextra - Finextra (2020-09-14)

"The Wirecard business still remains an ongoing concern. Following a due diligence exercise and competitive sales process, Change Financial was selected as the preferred bidder and has signed a binding sale and purchase agreement with the administrators," Change Financial said.


POSTHASTE SHARPEN YOUR FOCUS BEFORE YOUR WORKDAY SIGN UP NOW> SECTIONS SEARCH SUBSCRIBE SIGN IN BREADCRUMB TRAIL LINKS NEWSFP STREET CPPIB MOVES TO BOOST DEALMAKING IN FIRMS IT OWNS AS IT SEARCHES FOR HIGHER RETURNS

FP - Bloomberg (2020-09-14)

Canada’s US$330 billion national pension fund will allocate more money to fuel deals by companies it owns in search of higher returns, said its top executive.


HOW ALIPAY IS WORKING WITH EUROPEAN PARTNERS TO FURTHER DIGITAL PAYMENTS POST COVID-19

The Paypers - Anda Kania (2020-09-14)

One area where we can expect accelerated transformation is in the field of payments, and more broadly, financial services, as social-distancing measures become a part of daily life. In Europe for example, payment habits have changed to become more digital due to COVID-19 and these changes are likely to be permanent.


AUTOMATION TIPPING POINT FOR FINANCIAL TRANSACTION TAXES ARRIVES

Bobsguide - Bobsguide (2020-09-14)

Following in the footsteps of its European counterparts, the Spanish Government is currently pushing an FTT bill through the parliamentary process.


DUBAI'S EMIRATES NDB SIGNS MOU WITH ISRAEL'S BANK HAPOALIM - HAPOALIM STATEMENT

Reuters - Staff (2020-09-14)

The statement said that the MoU “marks a historic first as the banks look to further cooperation ties following the establishment of financial and economic relations between the United Arab Emirates and Israel.”


BMO CLIENTS LAUNCH LAWSUIT ALLEGING MILLIONS LOST FROM ADVISER’S RISKY TRADING STRATEGIES

G&M - Clare O'Hara (2020-09-14)

A group of Bank of Montreal clients are suing their financial adviser, along with the bank’s brokerage division, claiming they have lost tens of millions in savings after being placed in high-risk trading accounts without their consent.


HOW THE PANDEMIC IS CHANGING VIEWS ON FINANCIAL RISK

G&M - Laurence Mussio (2020-09-14)

The great pandemic of 2020 has administered a series of brutal, real-time tests of how we understand and manage risk. How do you understand or manage something that has never happened before? In finance, the pandemic has demonstrated the value of, and the need for, human judgment in an increasingly algorithm-driven sector.


UBS CHAIRMAN MAPS OUT CREDIT SUISSE MERGER

FT - Owen Walker and Stephen Morris (2020-09-14)

UBS chairman Axel Weber has mapped out a merger with Credit Suisse that would create a unified Swiss champion in wealth management and investment banking. Mr Weber has used external management consultants to examine the potential for a deal but no formal discussions have taken place with Credit Suisse or with managers or directors at UBS, according to people briefed on the matter.


BOE DELAYS GOVERNMENT BOND PURCHASE AFTER SETTLEMENT GLITCHES

FT - Phillip Stafford (2020-09-14)

The Bank of England delayed a gilt purchase auction for the first time in more than three years on Monday, following outages in a vital part of the UK securities market’s infrastructure.


SUBSCALE MARKETS ‘COMING OF AGE’ PUSH GROWTH IN ASIA

FT - Selena Li (2020-09-14)

Growth in the Asia-Pacific exchange traded fund market is continuing at breakneck pace as the rise in assets under management in China and Taiwan adds to strong performance by Japan-domiciled ETFs.


RECORD NUMBER OF UNDERPERFORMING ‘DOG’ FUNDS

FT - Madison Darbyshire (2020-09-14)

A record 150 funds were classed as poor performers in a closely watched list of investment product returns, underlining the tumultuous impact of the coronavirus pandemic on stock markets.


THE GOOD TIMES FOR BIG US BANKS CANNOT LAST UNDER BIDEN

FT - Robert Armstrong (2020-09-14)

The prospect of a Joe Biden presidency — or, more to the point, a Democratic sweep of the presidency, the House and the Senate — should worry executives who run banks and anyone who invests in them.


LOBLAW MOVES BACK INTO BANKING THREE YEARS AFTER CUTTING TIES WITH CIBC

G&M - James Bradshaw (2020-09-14)

Grocery giant Loblaw Cos. Ltd. is pushing back into everyday banking with the launch of a new bank account for customers, three years after severing a 20-year relationship with Canadian Imperial Bank of Commerce to focus on its credit-card business.


OBAMACARE CO-OPS DOWN FROM 23 TO JUST 3

Benefits Pro - Phil Galewitz (2020-09-11)

They are also all in line to receive tens of millions of dollars from the federal government under an April Supreme Court ruling that said the government inappropriately withheld billions from insurers meant to help cushion losses from 2014 through 2016, the first three years of the ACA marketplaces. While those payments were intended to help any insurers losing money, it was vitally important to the co-ops because they had the least financial backing.


MORTGAGE DELINQUENCIES EXPECTED TO JUMP IN LATTER PART OF THE YEAR, CMHC SAYS

G&M - Rachelle Younglai (2020-09-11)

As of July 31, banks had provided mortgage deferrals of up to six months to more than 775,000 homeowners. That represents about 16 per cent of the banks' residential mortgage portfolios, up from 10 per cent in April, according to their industry group, the Canadian Bankers Association.


HOUSING STARTS HIT 13-YEAR HIGH, RISING 7 PER CENT IN AUGUST, CMHC DATA SHOW

G&M - Rachelle Younglai (2020-09-11)

National housing starts rose 7 per cent in August compared with July, to a seasonally adjusted annual rate of 262,396, according to the Canada Mortgage and Housing Corp. That was the highest level since September, 2007, and another month that bucked the agency’s forecast for a precipitous drop this year.


EURONEXT AND ITALY'S CDP CONFIRM TALKS TO BUY BORSA ITALIANA

Reuters - Staff (2020-09-11)

Pan-European exchange Euronext ENX.PA and Italian state lender Cassa Depositi e Prestiti (CDP) confirmed on Friday they were in talks to buy the Milan stock exchange Borsa Italiana.


MACKLEM SAYS BANK OF CANADA WILL MAINTAIN EXTRAORDINARY STIMULUS

Bloomberg - Shelly Hagan (2020-09-11)

The Bank of Canada plans to maintain extraordinary stimulus for as long as needed to help the nation’s economy fully recover from the crisis, Governor Tiff Macklem said.


CELEBRITY-BACKED CHARITY AT HEART OF TRUDEAU SCANDAL SHUTS DOWN

Bloomberg - Natalie Obiko Pearson (2020-09-11)

A high-profile charity that spawned a political uproar in Canada after Prime Minister Justin Trudeau’s government put it in charge of a nearly C$1 billion program for student pandemic aid has decided to shut down.


BANK OF MONTREAL CEO FIGHTS SKEPTICS WHO SEE BUSINESS LOAN WOES

Bloomberg - Doug Alexander (2020-09-11)

“I’ve got skeptics against me out there right now that there’s going to be a shoe to drop in our commercial bank because of loan impairments that will be higher in a Covid recession than they might be in other recessions,” Chief Executive Officer Darryl White told Bloomberg in an interview. “I’m happy to take them on because I predict that we will continue in this environment to have lower loan losses than our peers.”


NAVACORD EXPANDS BENEFITS BUSINESS WITH NEW ACQUISITION

Insurance-Portal.ca - IIJ (2020-09-11)

Toronto-based commercial insurance broker Navacord Corp. continues its expansion strategy in the group benefits sector with the acquisition of a B.C.-based…


COULD A SECOND WAVE MEAN A SECOND SHUTDOWN?

Investment Executive - Michelle Schriver (2020-09-11)

In a report on Wednesday, National Bank Financial, Inc. assessed the number of Covid-19 cases versus deaths in North America and Europe. That analysis showed that a recent increase in cases hasn’t resulted in a surge in deaths compared to March and April.


CLOSET INDEXING HARMS INVESTORS, STUDY CONFIRMS

Investment Executive - James Langton (2020-09-11)

“Closet indexers therefore appear to pass on to consumers only a small share of the lower economic costs of benchmark-tracking compared to active management, rather than engaging in price competition,” it said.


IFIC NAMES BOARD OF DIRECTORS FOR 2020–2021

Investment Executive - Staff (2020-09-11)

The Investment Funds Institute of Canada (IFIC) has named the members of its board of directors for 2020–2021, the institute said in a release on Thursday.


BANKING ON CLIMATE CHANGE

Investment Executive - James Langton (2020-09-11)

“The [European Central Bank (ECB)] is the only regulator to make clear that climate scenario analysis and stress testing should explicitly feed into banks’ capital adequacy,” Fitch said.


JOHN MANLEY ON GETTING BACK TO BUSINESS

Conference Board of Canada - Podcast (2020-09-10)

Canadian businesses have been scrambling to find ways to stay afloat since the beginning of the pandemic in March. Government programs have helped, but they can’t last forever. We’ve all had to adapt to whatever “normal” was as we progressed through lockdown. As our businesses incrementally reopen, they are tasked with the challenge of being both safe and profitable.


NEW HOME CONSTRUCTION PICKED UP THE PACE IN AUGUST AS BUILDERS STARTED UP AGAIN SOCIAL SHARING

CBC - ANITA BALAKRISHNAN (2020-09-10)

Builders broke ground on more new homes in August amid a surge in construction on apartments, condos and other types of multiple-unit housing projects in urban centres.


TRUDEAU ANNOUNCES NEW LOAN PROGRAM FOR BLACK ENTREPRENEURS AS SINGH CALLS FOR ACTION AGAINST SYSTEMIC RACISM

CBC - CBC (2020-09-10)

The $221-million program will receive about $93 million from the federal government over the next four years and $128 million from eight financial institutions.


TD FACES CLASS-ACTION LAWSUIT OVER TRAVEL INSURANCE AND CANCELLED TRIPS AMID PANDEMIC

CBC - CP (2020-09-10)

Toronto-Dominion Bank is facing a class-action lawsuit over its refusal to pay travel insurance claims following trip cancellations triggered by the COVID-19 pandemic.


BANKS WENT ON A BUYING SPREE AFTER THE LAST CRISIS, BUT THIS TIME IS DIFFERENT, CEOS SAY

FP - Geoff Zochodne (2020-09-10)

Having weathered the global financial crisis of 2007-08 better than a number of their foreign peers, the country’s Big Six banks made dozens of acquisitions in the years that followed, such as Montreal-based National Bank of Canada buying independent wealth-manager Wellington West Holdings Inc. in 2011.


PETCO OWNERS WEIGHING $6 BILLION SALE OR PUBLIC OFFERING

Bloomberg - Gillian Tan, Kiel Porter, and Paula Sambo (2020-09-10)

The owners of Petco Animal Supplies Inc. are exploring a sale or initial public offering that could value the retail chain at $6 billion, including debt, according to people with knowledge of the matter.


BANK OF MONTREAL CEO FIGHTS SKEPTICS WHO SEE BUSINESS LOAN WOES

Bloomberg - Doug Alexander (2020-09-10)

Bank of Montreal’s top executive says it’s a “myth” that his company’s commercial lending business is taking big risks and argues the bank will come through the recession with fewer loan losses than rivals.


BANK OF CANADA HOLDS RATES, OPENS DOOR TO BOND-BUYING TWEAKS

Bloomberg - Shelly Hagan (2020-09-10)

In a decision Wednesday from Ottawa, policy makers led by Governor Tiff Macklem held the bank’s benchmark rate at 0.25% and said they’ll leave it unchanged until economic slack is absorbed so that the 2% inflation target is “sustainably achieved.” The central bank also retained a pledge to buy government bonds at the current pace and maintain extraordinary monetary policy stimulus throughout what it calls the recuperation phase of the recovery.


CANADIAN BANKS RETURN TO FOCUS ON COST CONTROLS, RESUME PAUSED JOB CUTS

G&M - Nichola Saminather (2020-09-10)

Canada’s biggest banks are returning to a focus on managing expenses, with some resuming job cuts put on hold in response to the coronavirus pandemic and others deferring investments not deemed urgent.


LLOYDS TO CUT 865 JOBS AS COST PRESSURES ON BANKS INTENSIFY

FT - Nicholas Megaw and Kate Beioley (2020-09-10)

Lloyds Banking Group has announced its first round of job cuts since putting restructuring plans on hold at the start of the pandemic. The UK’s largest high street lender said it would eliminate 865 roles, starting in November, which would be partially offset by the creation of 226 new positions elsewhere in the business. 


ROBOADVISERS MAKE SLOW PROGRESS GAINING GROUND WITH INVESTORS

FT - Rheaa Rao (2020-09-10)

Just 8 per cent of US households report having money in such services, which typically rely on portfolios made of ETFs,, the report says. The company produced its report based on a survey of 5,641 households in July 2019. That amounts to roughly 10m households nationwide, according to Hearts & Wallets.


WHY YOUR CLIENTS AREN’T FEELING TOO GOOD THESE DAYS

Canadian Underwriter - Adam Malik (2020-09-10)

Nearly half of Canadians (45%) told a Sun Life survey that they feel less financially secure than when the COVID-19 pandemic started six months ago.


WHY THE STATUS QUO CAN BE DANGEROUS IN THE CONSTRUCTION INSURANCE WORLD

Canadian Underwriter - Jason Contant (2020-09-10)

“[Construction] isn’t what it used to be 20 years ago or even 10 years ago,” he added. There used to be lots of domestic capacity, but now there are fewer insurance players in the game. “What is the approach for actually engaging the market once you’ve selected what you need and what your risk continuum looks like?” Hergott asked. “The marketplace is so much smaller. If I have a global insurer, they might have different appetites depending on the specific situation.”


BOC’S MACKLEM WARNS RISING INEQUALITY IN JOBS AND INCOME POSES THE BIGGEST THREAT TO ECONOMIC RECOVERY

G&M - DAVID PARKINSON (2020-09-10)

Bank of Canada Governor Tiff Macklem warned that the spectre of rising inequality in employment and incomes poses the biggest threat to a healthy, broad-based recovery from the COVID-19 crisis, as the economy stages what he called an “uneven” rebound from its pandemic lows.


FORTRESS TO PAY $250,000 TO SETTLE WITH ONTARIO MORTGAGE REGULATOR

G&M - Mark Rendell (2020-09-10)

Fortress Real Developments Inc. has agreed to pay $250,000 for violating Ontario mortgage rules in the first direct penalty against the troubled construction finance company.


CONCERNS ABOUT TAXES ON HOMES MAY BE WARRANTED

G&M - Tim Cestnick (2020-09-10)

If you’ve been following the news lately, it will come as no surprise that there have been numerous writers raising the possibility of a tax on the principal residences of Canadians. It seems to have started with a report that Canada Mortgage and Housing Corp. has provided a $250,000 grant to researchers at the University of British Columbia, where the focus is on housing wealth and inequality, according to the CMHC. The project is considered the first one sponsored by the Crown corporation as part of the Liberal government’s National Housing Strategy.


CANADIAN MORTGAGE DEBT GROWTH CLIMBS TO 3-YEAR HIGH IN MAY AS PAYMENTS DEFERRED

G&M - Reuters (2020-09-10)

Canadian mortgage debt rose in May at the fastest annual rate in three years, boosted by a jump in property sales and record levels of mortgage payment deferrals due to the coronavirus pandemic, data from the national housing agency showed.


CITIGROUP’S JANE FRASER TO BE FIRST WOMAN TO LEAD A BIG WALL STREET BANK

G&M - EMILY FLITTER AND MICHAEL J. DE LA MERCED (2020-09-10)

Wall Street’s longest-enduring glass ceiling is about to be broken.


LLOYD'S OF LONDON MAKES MASSIVE CORONAVIRUS CLAIMS PREDICTION

Insurance Business - Paul Lucas (2020-09-10)

If you needed proof of the pelting that the insurance industry has taken at the hands of the coronavirus, then look no further than Lloyd’s of London.


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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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JPMORGAN TO MOVE $230 BILLION OF ASSETS TO GERMANY AHEAD OF BREXIT

The shift sees JPMorgan follow similar moves by other big banks in Britain, as regulators in continental financial hubs such as Frankfurt and Dublin urge banks to book their assets locally.


DIGITAL LENDING REQUIRES SPEED AND SIMPLICITY TO WIN BATTLE WITH FINTECHS

Leveraging new forms of data, advanced analytics, and modern technology, financial institutions of all sizes can reduce the cost of delivering products and services and serve a much more comprehensive array of consumers with innovative products and services. In no product area is this more evident than in digital lending.


CANADIAN BANKS RANKING - WHICH ONE IS THE STRONGEST BANK?

Canadian banks are amazing. They have outperformed the Canadian market for the past 5, 10, 15, probably 25 years.



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