RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Two imminent options we are facing now.For those inclined to listen to Chicken Little and/or Rallard, here's some of the surrounding info. Ya, scary stuff....lol....they want to make our financial system more stable. Scarrrrrey
Here is the source from whence the offending snippet twas snipped: https://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
"Establishing a Risk Management Framework for Domestic
Systemically Important Banks
Economic Action Plan 2013 will implement a comprehensive risk management
framework for Canada’s systemically important banks.
Canada’s large banks are a source of strength for the Canadian economy.
Our large banks have become increasingly successful in international
markets, creating jobs at home.
The Government also recognizes the need to manage the risks associated
with systemically important banks—those banks whose distress or failure
could cause a disruption to the financial system and, in turn, negative impacts
on the economy. This requires strong prudential oversight and a robust set of
options for resolving these institutions without the use of taxpayer funds, in
the unlikely event that one becomes non-viable.
The Government intends to implement a comprehensive risk management
framework for Canada’s systemically important banks. This framework will
be consistent with reforms in other countries and key international standards,
such as the Financial Stability Board’s Key Attributes of Effective Resolution
Regimes for Financial Institutions, and will work alongside the existing Canadian
regulatory capital regime. The risk management framework will include the
following elements:
Systemically important banks will face a higher capital requirement,
as determined by the Superintendent of Financial Institutions.
The Government proposes to implement a ―bail-in‖ regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its
capital, the bank can be recapitalized and returned to viability through the
very rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult
stakeholders on how best to implement a bail-in regime in Canada.
Implementation timelines will allow for a smooth transition for affected
institutions, investors and other market participants.
Systemically important banks will continue to be subject to existing risk
management requirements, including enhanced supervision and recovery
and resolution plans.
This risk management framework will limit the unfair advantage that could
be gained by Canada’s systemically important banks through the mistaken
belief by investors and other market participants that these institutions are
―too big to fail.‖ "
Read it yourselves and you'll see just how over the top