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Email this9:37 pm
October 21, 2016
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For those interested, the CDIC has handled 43 bank failures since its creation in 1967. The last one being Security Home Mortgage Corp. in 1996.
10:13 pm
April 6, 2013
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CDIC publishes the list of the 43 former member institutions at History of member institution failures.
6:57 am
September 11, 2013
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43 failures in the first 30 years, none in the last 20. What's going on?
7:09 am
August 4, 2010
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Bill said
43 failures in the first 30 years, none in the last 20. What's going on?
Learning curve... 🙂
Remember, that was around the time of the massive S&L (savings and loan) crisis down in the States. I think ours were undercapitalized little mortgage trusts and overextended western investment banks; we got off lightly compared to the US.
7:47 am
April 15, 2015
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Hello I had a GIC from my broker many many moons ago.I think it was Shoppers Trust,possibly from BC..They had financial difficulties.I got paperwork shortly saying not to worry.Several months later another FI took over their assets & my GIC was taken over by them.When it came due I received my principal & interest with absolutely no problems.
8:04 am
April 6, 2013
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semi-retired said
Hello I had a GIC from my broker many many moons ago.I think it was Shoppers Trust,possibly from BC..They had financial difficulties.I got paperwork shortly saying not to worry.Several months later another FI took over their assets & my GIC was taken over by them.When it came due I received my principal & interest with absolutely no problems.
That's the best outcome for depositors. Another financial institution buys the assets and assumes the deposits. Depositors receive a welcome letter from the new institution and statements with a different company name and logo. Principal and interest will then be paid out by the new financial institution on the original maturity date.
Not always possible, though. CDIC may have to wind up the floundering financial institution. It is on windup that the deposits are terminated and depositors receive a cheque from CDIC.
9:01 am
October 21, 2013
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Norman1 said
CDIC publishes the list of the 43 former member institutions at History of member institution failures.
They don't tell us which ones they actually had to bail out. It would be interesting to know how many required CDIC money and how many they were able to arrange takeovers for.
9:06 am
April 7, 2017
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Or another question....did CDIC financially help an FI to take over a failing FI. If yes, what was the cost?
9:29 am
October 21, 2016
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Norman1 said
CDIC publishes the list of the 43 former member institutions at History of member institution failures.
Norman1, thanks for the link as I wasn't aware of it. I got the statistic from reading The Globe and Mail Unlimited . Lots of interesting info and opinions on the Unlimited as I intend to get back into equities in the coming months.
9:33 am
August 4, 2010
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CDIC annual reports don't seem to be online back that far, if I remember, and I don't know what they were disclosing. I seem to remember a 1997 or so one I found which was still going over one or two of the long-running windups, with some numbers.
There's some other stuff that might be found - Google has the text of a book called "Bank Failures in the Major Trading Countries of the World: Causes and Remedies" (real bedtime reading), which says things like "...[in 1996]...[Bank of British Columbia] was acquired by Hong Kong and and Shanghai Banking Corporation, with a payment of $200 million made to that bank by the CDIC.", or a 1994 payout to depositors of Monarch Trust of $65 million.
9:40 am
December 17, 2016
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JustMe2016 said
I intend to get back into equities in the coming months.
This might be of interest to you or not. I saw on BNN.ca, yesterday, that they are now offering "real-time" stock quotes. I don't know if it's a big deal or not - probably other websites have been offering "real-time" all along and I haven't noticed.
2:14 pm
October 27, 2013
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Like semi-retired, it was seamless to me when Principal Trust went insolvent in the 1980s. About a month later I got an account statement of my GIC holdings with a different letterhead. Continued to get fully principal and interest.
It is not a big deal....really especially if you are within CDIC insured limits. If you look at the CDIC site, they have a number of ways of handling an FI crisis, each of which depends on the circumstances.
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