Comments on: We are all Canadians now

By: Still on the downward slope | afoe | A Fistful of Euros | European Opinion

Wed, 11 Mar 2009 17:13:22 +0000

[...] Cowen also recently cited Canada as his preferred model for financial sector regulation. Various things contribute to [...]

By: Mark Dowling

Mark Dowling — Mon, 02 Mar 2009 16:32:13 +0000

Here’s another Canadian institution which lends stability to the economy here – the Canada Mortgage and Housing Corporation. Essentially, every mortgage under 20pc (it used to be 25) downpayment has to pay a mortgage default insurance premium. I don’t think it’s an actual legal requirement but more that the banks want it to offer the loan. There are one or two private providers but the CMHC provides the vast majority of insurances to mortgages.

Not only does that extend the range of default insurance through the riskiest part of the market, but it allows the Government of Canada to intervene by buying up non-performing loans from the banks – which it has just done to the tune of 1.25 billion Canadian dollars. After all, it’s not a bailout when you’re on the hook for the default anyway, but the banks are relieved of the bad loans which were made according to CHMC guidance.

Now if only we could get a Federal Securities Regulatory we’d be grand – well, that and a California climate. I think the second one will be an easier get…

By: Keith

Keith — Mon, 02 Mar 2009 16:11:02 +0000

Virtually *everything* is done better in Canada than Ireland. Want to work out how to do something in Government here? Just copy what they do in Canada. Nine times out of ten, it’ll work better than our current policy (copy what they do in the UK).

By: Ronan O\'Driscoll

Ronan O\'Driscoll — Sun, 01 Mar 2009 17:07:24 +0000

Excellent point. As an Irishman living in Atlantic Canada (Halifax), it is rare to see relationships established between here and there. I have often thought that the Maritimes could benefit as much from a connection with Ireland and Europe as we do with our bigger neighbours: “Upper” Canada and the US. The historical analogy with Newfoundland is a good one although I don’t think Gaelic speakers were ever really established there. You might have been think of Cape Breton where Scots Gallic is still a living language. As far as I know it was once also independent but was merged into Nova Scotia after falling on hard times…
Really enjoy this blog. Great to have an independent voice in these crazy times.

By: barry

barry — Sun, 01 Mar 2009 16:16:38 +0000

IMO, no matter what model they use the fact that Cowan said they would continue with the Central Bank / Financial Regulator modus means nothing much will change.

Have we forgotten how long it took to resolve the turf battle that led to the CB being given the FR?? In reality the CB has no role, except printing notes and attending meetings in Frankfurt. That was realised after the € and the whole battle on the regulation was resolved to give the CB something to do. As a sop to the opposition to the CB the Corporate Enforcement was set up. We’ve seen their effectiveness in the Anglo stuff…..

No, I’m afraid that even if they bring in some Canadians or whatever, the old guard in the CB will slow it all down, like English rugby forwards…..

By: JL Pagano

JL Pagano — Sun, 01 Mar 2009 10:58:58 +0000

Once this Cowen masterplan swings into action, we’ll have the perfect international financial set-up…a Canadian-stlye regulatory sytem looking after our Icelandic-style economy.