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Canada’s Fourth Largest Bank Erases $1 Billion In Excess Capital In Unexpected Accounting Gimmick

Canada’s Fourth Largest Bank Erases $1 Billion In Excess Capital In Unexpected Accounting Gimmick Early in 2016, when oil prices were plunging and when US banks were careful to push up their loan loss reserves to exposed E&P loans, we noted something surprising: Canadian banks had barely taken any loss reserves to their exposure in the […]

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Bank of Montreal Asks If “Oil Prices Could Collapse To $20”; Answers: “Yes”

Bank of Montreal Asks If “Oil Prices Could Collapse To $20”; Answers: “Yes” When looking at the price of oil in 2015, Canada’s Bank of Montreal admits it was wrong. Very, very wrong. In our “2015 Year Ahead” report we laid out three plausible scenarios: (1) our base case, which forecast Brent crude oil prices […]

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How Insane Is Canada’s Housing Bubble? 42% of “Second-Time” Buyers Need (a lot of) Money from Mom & Dad to Buy a Home

How Insane Is Canada’s Housing Bubble? 42% of “Second-Time” Buyers Need (a lot of) Money from Mom & Dad to Buy a Home A housing bubble is a huge party. Everyone gets drunk and has a good time. The economy booms because housing, particularly construction, is a very local business. It creates local jobs. People […]

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Canada’s RBC and BMO move to cut prime rates

Canada’s RBC and BMO move to cut prime rates TORONTO (Reuters) – Royal Bank of Canada, the country’s biggest lender, said on Tuesday it would cut its prime lending rate by 15 basis points, becoming the first of Canada’s big banks to trim borrowing costs nearly a week after the central bank stunned markets with a […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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