{"id":11290,"date":"2010-06-22T01:06:45","date_gmt":"2010-06-22T05:06:45","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=11290"},"modified":"2010-06-22T01:06:45","modified_gmt":"2010-06-22T05:06:45","slug":"contingent-capital-canada-a-laughing-stock","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=11290","title":{"rendered":"Contingent Capital: Canada a Laughing-stock?"},"content":{"rendered":"

The Globe & Mail<\/i> reports<\/a>:<\/p>\n

Finance Minister Jim Flaherty is edging away from his alternative to a global bank tax, acknowledging in an interview that it\u2019s \u201cdebatable\u201d whether enough countries can be won over to make Canada’s contingent capital plan work on a global scale.<\/p>\n

It’s still too early to write off the idea, which would require banks to sell debt that would convert to equity at times of stress. Mr. Flaherty stressed that he remains a fan of the concept, which he sees as a form of self-insurance that would make financial institutions less likely to rely on taxpayers to bail them out in future.<\/p>\n

But the proposal has run into a wall of doubt in financial markets, where investors are skeptical that enough buyers could be found to make the securities affordable for banks to issue.
…<\/b>
\u201cI like the contingent capital idea, but I understand some of the concerns that have been expressed about it. It needs more work, more discussion.\u201d<\/p><\/blockquote>\n

As far as Canada is concerned, it might be a good idea to try some work, some discussion; any work, any discussion.<\/p>\n

As I have complained in the past, Canada’s efforts to provide a coherent plan have been limited to an off-the-cuff remark from the Central Bank<\/a> (promoting an insane extension to the idea that has the intent of eliminating creditors’ rights) together with an intellectually dishonest speech<\/a> and childish essay<\/a> by the head of bank regulation. There is no evidence of any money being spent whatsoever on research, discussion, or thought.<\/p>\n

Canada may not just have blown its own credibility with these antics, but, such are the vagaries of politics, have made the entire idea more difficult to achieve.<\/p>\n

What did we ever do to deserve a clown like Spend-Every-Penny as Finance Minister?<\/p>\n","protected":false},"excerpt":{"rendered":"

The Globe & Mail reports: Finance Minister Jim Flaherty is edging away from his alternative to a global bank tax, acknowledging in an interview that it\u2019s \u201cdebatable\u201d whether enough countries can be won over to …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[],"class_list":["post-11290","post","type-post","status-publish","format-standard","hentry","category-contingent-capital"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11290"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11290\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}