Canadian Banks: the "next shoes to drop"?
And all that makes the MSM news here is that Occupy Toronto left the damn park a bit messy!
Contributor: "Brian H"
Apropos of comments the other day by YYC about "generally pleased Canadians" and Finance Minister Jim Flaherty’s public hand wringings, here is a long, involved read, but worth while, I think:
Why The UK Trail Of The MF Global Collapse May Have "Apocalyptic" Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else
… it is a link so sinister it touches every corner of modern finance up to and including such supposedly "stable" institutions as Jefferies, which as it turns out has spent weeks defending itself, however against all the wrong things, and Canadian banks, which as it also turns out, defended themselves against Zero Hedge allegations they may well be the next shoes to drop …
Check out RBC and CIBC customers’ apparent exposure to disaster due to the practice known as "rehypothecation"!
"Canadian Imperial Bank of Commerce (re-pledged $72 billion in client assets), Royal Bank of Canada (re-pledged $53.8 billion of $126.7 billion available for re-pledging)"
Basically they are using the same collateral over and over again on many loans. Of course, being global entities they can shop for the most favourable legal and regulatory system in which to hatch their nefarious plots and schemes.
Then, when it all blows up, they play the too-big-to-fail, get-out-of-jail free card from the last time they passed GO! And all that makes the main stream media news here is that Occupy Toronto left the damn park a bit messy! It makes my blood boil. As my late dad used to say: Wake the F up people!
You couldn’t make this stuff up with a straight face! Imagine trying it on your local bank’s loan manager? What do you mean I can’t pledge my car against four loans at once?
It makes underwater mortgages seem like just the kiddies’ wading pool. Or am I overreacting?