Josh Sigurdson sits down with author and economic analyst John Sneisen to give everyone an update on the fall of Canada’s Home Capital Group now being labelled Canada’s “New Century moment.”
While people on television claim this is not a credit issue and simply based on faith of shareholders, this is just a simplistic talking point pushed by the heads of Scotia Bank and other major banks panicking over this massive crash.
This has also led to other lenders seeing massive losses, proving a bank jog is happening. One of those caught in the cross-hairs is Equitable Bank.
The company said that customers had withdrawn an average C$75 million each day between Wednesday and Friday, and while the withdrawals so far are modest, and represented 2.4% of the total deposit base, the recent HCG case study showed how quickly such a bank run could escalate. And while liquid assets remained at roughly C$1 billion after the outflows, the company also announced that it had taken out its own C$2 billion credit line with a group of Canadian banks, just in case the bank run was only getting started.
We will continue to report on this insane developing story as bubbles inflate in Vancouver, Toronto, Hamilton and other places across Canada.
Doreen Ann Agostino
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