The Harper Conservatives are fond of touting Canadian banks as more stable than other countries’ big banks. They claim all the credit for Canada’s stability during the 2008-10 global financial crisis. And, we’re often told that our banks needed no bailout during the crisis. What a big Whopper! Canada’s big banks actually received $114 billion in support from the federal government and the Bank of Canada during the crisis, according to a report by the Canadian Centre for Policy Alternatives (CCPA).
The study reveals that Canada’s banks received $114 billion in cash and loan support from both the U.S. and Canadian governments during the 2008-2010 financial crisis. The study estimates that at some point during the crisis, three of Canada’s banks—CIBC, BMO, and Scotiabank—were completely under water, with government support exceeding the market value of the bank. Due to government secrecy, the study raises more questions than it answers.