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Wealth Professional | 08 Jul 2015, 09:00 AM Agree 0
Advisors may have it all wrong: An expert is pointing to why China threatens Canadian securities more than Greece ever could.
  • Dan Moore | 08 Jul 2015, 10:25 AM Agree 0
    The real threat to the Financial/economic system in Canada is hypothecation with the defaults in the EU and China looming in my mind.

    The shadow banking system pledging Canadian banks pledging client deposit assets through the UK to obtain funding for themselves is common practice and unregulated and off balance sheet. Think RBC and the recent cut of credit rating from exposure to shadow banking re-hypothecation.
    The fact that these Canadian banks are allowed to do this around regulation and without their depositors knowledge says it all!

    Firms have been piling into re-hypothecation activity with startling abandon. A review of filings reveals a staggering level of activity in what may be the world’s largest ever credit bubble.

    Engaging in hyper-hypothecation have been Goldman Sachs ($28.17 billion re-hypothecated in 2011), 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), Oppenheimer Holdings ($15.3 million), Credit Suisse (CHF 332 billion), Knight Capital Group ($1.17 billion),Interactive Brokers ($14.5 billion), Wells Fargo ($19.6 billion), JP Morgan($546.2 billion) and Morgan Stanley ($410 billion).

    These contracts come ahead of bank depositors in the event of default and are many times the bank assets.

    Spreading your risk staying within CDIC guidelines and using multiple deposit accounts will mitigate some risk.
  • Peter | 08 Jul 2015, 12:56 PM Agree 0
    Not much has changed in the financial industry since the global economic meltdown of 2008-09. Advisors have to do a lot more compliance, but the Bay St and Wall St. still lie and cheat. Nothing matters but greed, bonuses and profits.
    The world economy is in shatters (despite the government and bank rhetoric) yet the markets are again at near record levels. What is wrong with this picture?
  • Robert Roby | 08 Jul 2015, 05:18 PM Agree 0
    Dan..well said. History proves that time and again the big boys put the screws to the small guy. This will never change. I hate to think what it would be like to live in a communist country or a dictatorshi
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