http://www.usatoday.com/money/world/2009-07-01-canada-bank-regulation_N.htm Not so impossible after all.... So.....what does this suggest ?
Further proof of my claim that the banking sector needs to be far more stringently regulated (due to agency costs and negative externalities) or simply nationalized. I thought you were dogmatically pro-freedom, libertad?
Well no headquarters, but many of the IBs have offices here. We also don't use 30:1 leverage. Canada is doing better then the US through this recession but we have still slowed down and lost jobs. Banks are still stable and lending. No bank bailouts, but auto bailouts and support for other struggling industries.
There's a good speech by Volcker where he talks about his views on why Canadian banking system did so much better. I don't have the URL unfort. One of the reasons he mentions is a much better separation between commercial and investment banks.
..................................................................... Volcker and the late Seidman offer good insights.... There should be a banking sector and a securities sector.... The banking sector should be restrictive regarding skin in the game and "actually knowing your customers".... Best done via localized management.... The securities sector should be where the gunslingers.... big winners....big losers....innovations....festering relics.....the whole lot.....should be able to change owner labels for no more than 20 cents per 100 units .....singular direct access worldwide electronic exchanges....in the currency of choice....choosing any security of choice.....via the BATS....DE model..... Furthermore all securities transactions should be tax free in all countries....Information should be fact based wiki format..... I will further add that any customer should be able to invest in any Central Bank's currency at CB rates....This alone will keep the politicos in check to some degree from making too outlandish deficit type mistakes....in that any individual by virtue of a couple of mouse clicks ....can exit into their favored currency on a nonlevered CB rate basis.... Capital will become most efficient....and govts. may behave a little better regarding their deficits.... ........................................................................................ The biggest part of what is missing are loanable amounts and booked assets.... Such a universal exchange will offer bankable assets that would dwarf any previous economy.... At the moment prices and production are adrift because over $30 Trillion was ejected from a $70 Trillion base....and every move the current administration has made ....has only made the ratio less favorable.... Emerging markets just clocked $3 T.... A universal sound DAUE system will make available to any citizen of any language and any country who has some drive and some change .....a means to test their financial intelligence .....or lack of it..... Add to the mix ....a 10/5 C tax.....Then valuations will scream higher on the books.....and financial freedom will be a highlight again.... And most importantly....better wealth distribution....better jobs and more of them....more innovation....the list gets longer and longer to the positive.... Even the resulting tax take would still dwarf all previous amounts....
Banks in Canada do not take major risks because they do not have to, there is limited competition. Comsumers pay higher fees for everything from overdraft protection to mutual fund fees. Be careful what you wish for, our system should not be put up on a pedistal as a good thing when it is far from it. And with the exception of federal chartered tier 1 banks the regulatory system here is more of a joke then the one in the US.