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Moody’s Downgrades Canadian Debt, Due to ’Bail-in’ Policy
14 June 2014
(EIRNS)—Canada’s seven largest banks saw their Moody’s rating cut on some of their senior debt and uninsured deposits on June 11, "in the context of previously announced plans by the Canadian government to implement a `bail-in’ regime for domestic systemically important banks." According to a story in the Financial Post, Moody’s also cited an "accelerating" global trend towards reducing the public cost of future bank "resolutions." Canada adopted a "bail-in" policy in its 2013 budget; the plan was first proposed in the spring of 2013, immediately after the Cyprus bail-in, and when Mark Carney, currently the governor of the Bank of England, was governor of the Bank of Canada. Of course, a debt write-down is the least of the problems which a bail-in policy, mandated by the G20, creates—everything from mass expropriation of the population, to the collapse of the world financial system as a whole. For the moment, Moody’s left the long-term ratings of the banks as a whole as "stable." The banks affected are the "systemically important" ones: Toronto-Dominion Bank, Royal Bank of Canada, the Bank of Nova Scotia, the National Bank of Canada, the Canadian Imperial Bank of Commerce, and the Bank of Montreal. |
