Details uncovered in this report contradict repeated government assurances that Canadian banks did not need extraordinary support. Nothing could be further from the truth. Three of Canada’s banks drew support that was worth more than the total value of their company. "It would have been cheaper to buy every single share in these companies," David MacDonald, author of the report said.
At its peak, CIBC received $21 billion in support — almost 1.5 times the value of the company at the time. BMO maxed out at $17 billion or 118 per cent, Scotiabank peaked at $25 billion or 100 per cent of its value, while TD and RBC maxed out at $26 billion and $25 billion — good enough for 69 and 63 per cent, respectively, of the total value of those companies at the time. During the same period the banks themselves reported a profit of 27 billion dollars and their managers helped themselves to huge bonuses on the taxpayers dime.
While the details around the American bank bailouts are fully available to the public (due to a legal challenge forcing this information into the open), the Canadian federal government and Bank of Canada have refused to answer any questions about the bailouts. "Despite Access to Information requests for the data, the Bank of Canada refuses to release it," the CCPA report states.
The refusal to answer questions is the really troubling part of this story. Is Canada a democracy or not? Are we now so numb to the continuous lies told by our government for our own good that it doesn't even matter any more? This specific story is a Canadian one but the general story is the same in the US, the EU, everywhere in the 'developed' world.. A cabal of bankers and corporations owns our governments. They do what they want when they want and answer to no-one.
The Big Banks' Big Secret by David MacDonald - Estimating government support for Canadian banks during the financial crisis.
