David Newman's letter to Manitoba CU regulator | Page 2 | General comparisons | Discussion forum

By the way, an update on the putative "unsound business model" caused by the "mere 19 basis points" gap on 5-year GIC/mortgage rates that Mr. Newman was so concerned about. Cambrian (the Achieva people) very helpfully disclose the interest rates on their assets and liabilities, grouped by maturity date ranges, in their 2011 financial statements. For the "4-5 years" group, their assets (mortgages and commercial loans) were returning 4.19% and their liabilities (GICs) paid out 3.47%, for a difference of 72 basis points (the overall margin seems around 100 bps).

This is pretty much identical to 2010 (2009 was 87 basis points), and they've actually reduced the gap between assets and liabilities for that maturity range. Whither Mr. Newman now…