On Mar 1, 2009, at 12:37 PM, Michael Pollak wrote:
> 1) Does your support for big banks mean support for universal banks?
> I.e., you don't think abolishing glass-steagal was the root of all
> evil, and that we can leave investment banks and commercial/consumer
> banks combined as they are now so long as we institute drop-dead
> serious regulation?
As part of my transitional strategy, I'd like to see the repression of the securities markets and their replacement with commercial bank finance. At this point, this is all dreaming, of course - cue Cde Cox on the sandbox right now. But the whole Anglo-American stock centered model is a problem in itself, if you think volatility and polarization are problems.
> 2) If the concentration model is a good model, it doesn't really
> matter if Canada does it (except that rhetorically it's a good
> jumping off point). But just out of curiosity, does this model
> really describe Canada? Ken Hanly says there are around 1500 credit
> unions and caisse populaires.
I don't have the latest concentration figs, but the biggest banks in Canada account for a huge share of financial assets. Sure there are CUs and caisses populaires, but they're pipsqueaks next to TD, CIBC, and the other biggies.
Doug