Canada’s finance minister will have veto foreign takeovers by Canadian banks

Évidemment nos banques canadiennes font des milliards de profits, tandis que le peuple a toute la difficulté à joindre les deux bouts.

Car, une banque vie grâce aux dettes, plus que les États et le peuple sont endetté plus qu’ils sont riches et quand ça vas mal, il demande au secours.

Nos banques canadiennes ayant un environnement facile grâce aux oligopoles et n’assumant presque aucun risque sur les prêts immobiliers, car ceux, qu’ils sont les plus à risques (533 milliards) sont garantis par la SCHL et la SCHL c’est nous le peuple.

Donc, on prend le risque, mais eux font les profits, drôlement tordus comme situation, on a même pas besoin de sauver un ‘Fannie Mae and Freddie Mac’, nous sommes les ‘Fannie Mae and Freddie Mac.

Donc, avec les milliards de profits dans un marché quasi captif, au lieu d’en faire profiter le peuple canadien, ils décident d’investir ailleurs, M. Flaherty, commence à être très concerné et d’en mettre une limite, le gouvernement va avoir un droit de veto.

Deux articles et quelques notes sur notre système bancaire.

Is the banking and financial sector fairly taxed?

Canada’s banking and financial sector has been consistently highly profitable. Corporations in the finance sector enjoyed an average 23% profit margin during the past decade compared to a 7% average profit margin for firms in non-financial industries. Profits of Canada’s big five banks reached $19.4 billion in 2010 and are expected to rise by another 15–20% again in 2011.

Canada’s financial sector has been the greatest beneficiary
of recent corporate income tax cuts.

Source: Établir de nouvelles taxes pour les banques

Canada banking oasis

Banks in the United States and Europe are getting hit by bonus taxes and a welter of new regulation but here in Canada where policy makers see less need to penalize the sector, the Royal Bank of Canada and Toronto Dominion Bank on Thursday trounced earnings expectations with combined first quarter profit of $3.4-billion, driving their shares higher.

Players in this country have a major advantage over their foreign peers

Thanks to:

1)      limited competition,

2)      a strong currency,

3)      and low corporate taxes.

Extrait de: Canada banking oasis

Bank : Legal fiscal evasion

Banks taxes ratesIt is by no means a purely Canadian story.

Faced with budgetary shortfalls, governments around the world are casting an opportunistic eye on thriving industries as they search for ways to drum up more money to fund programs.

And with the country’s six largest banks having earned a collective $28-billion before taxes in 2010, the financial sector fits the description of a thriving industry.

Canadian banks pay a lot of tax, but they are also very effective at reducing the taxes they pay.

According to the Canadian Bankers Association, about 15 per cent of the industry’s profits are taxed in foreign countries where rates are lower. And much of their future expansion – and profit growth – will likely come outside the reach of the taxman in Ottawa.

While bank operations, such as branches, pay taxes in jurisdictions where they are located, other functions can be directed through a bank’s foreign offices to take advantage of lower tax rates.

Extrait de: Bank : Legal fiscal evasion

Extrait de: New bill would increase finance minister’s power over banks, Bill Curry and Tara Perkins, The Globe and Mail, Nov. 23, 2011 7:28PM EST


Canada’s finance minister will have new powers to veto foreign takeovers by Canadian banks, under new banking legislation introduced Wednesday by the government.

Extrait de: Move to have more power over banks ‘prudential:’ Flaherty, Grant Robertson and Rita Trichur, Globe and Mail, Nov. 25, 2011

As Canadian banks increasingly buy assets around the world, Ottawa has grown concerned about them allocating too much of their capital outside Canada, backstopping foreign operations at the cost of Canadian ones.

Those concerns prompted the federal government to move to give the Finance Minister new powers of veto over foreign takeovers by a Canadian bank. Legislation introduced in the Senate on Wednesday, which stems from a review of the Bank Act, caught the banks by surprise and sent ripples throughout the sector.

Under the proposed legislation, any bank or insurance company that increased its consolidated assets by more than 10 per cent through an acquisition outside Canada would need the minister’s approval.

Exacts, grâce à une situation privilégiée, ils font des milliards de profits et ne servent pas nécessairement l’intérêt des Canadiens.

Asked on Friday if the banking industry pushed for the change, Mr. Flaherty said the government pursued the new rule on its own.

“I don’t think that was requested by the banking industry. That was our government’s review of what’s prudential,” Mr. Flaherty said.

Though the government has been tight-lipped about the reasons behind the ministerial veto power, it stems from concerns about the global expansion Canadian banks have been undertaking in recent years. Domestic financial institutions that are well capitalized have been taking advantage of scores of assets coming up for sale around the world to build their businesses internationally.

Toronto-Dominion Bank, Bank of Montreal, Canadian Imperial Bank of Commerce, Bank of Nova Scotia and Royal Bank of Canada have all bought assets internationally, through deals ranging from a few hundred million dollars to multibillion-dollar transactions.

But as global bank regulations are rewritten in an attempt to prevent another financial crisis, institutions are being required to hold more tier-one capital, such as cash or other assets that are easily liquidated in a crisis to backstop their lending operations.

As top-tier capital becomes more in-demand, Ottawa wants to keep a closer eye on how much of that capital is flowing outside Canada to support foreign operations, rather than backstop Canadian bank businesses to buffer them against a crisis.

Extrait de: Canadian banks pocketing profits again, Jonathan, Toronto Sun, 02, December 2011

Canadian bank profits might be up but there are less workers in the industry in the last quarter of 2011. 

Statistics Canada’s monthly job numbers show employment in the finance, insurance and real estate sector is down 14% in November from one year previously.

And since June 2010:

·         The month before the Liberal government dropped its corporate income tax rate from 14$ to 12$ (a further reduction this July took it to 11.5)

·         Jobs in just finance and insurance have fallen by about 9,000.

There were 304,663 jobs in the sector that June - the post-recession peak - but by September of this year that number had dropped to 295,864.

New Democratic Party Leader Andrea Horwath said that’s evidence corporate tax cuts aren’t working for Ontario.

On le savait depuis longtemps, de plus, pour une banque c’est de faire un maximum de profit, on a juste à regarder les Caisses Populaires de moins en moins de succursales, de moins en moins de services, mais plus de profits, ou pour essayer probablement de payer des retraites insolvables.

“We’ve seen the last couple of years a bit of a trend - as we’ve been giving these rather generous tax cuts - across the board cuts - that are benefitting the banks, the banks are raking in massive profits in every single quarter.

“And yet they’re shedding jobs.”

Two of the country’s biggest banks reported big profits earlier this week.

Toronto-Dominion Bank said its fourth quarter turned a $1.57 billion profit, up 59% over the previous year.

CIBC also had a good quarter and a good year - with 2011 turning a profit of $3.1 billion, $600 million more than 2010.

“It’s once again clear that across the board corporate tax cuts as way to create jobs is an utter failure,” Horwath said.

The news came one day after Finance Minister Dwight Duncan dismissed Horwath’s assertion bank jobs are dwindling while bank profits grow.

“That is frankly inaccurate,” Duncan said.

”If you look at the last five years and even through the downturn, the banks and other large financial services sector have increased employment.

“We think it’s a strong and growing sector and we want to make sure we remain competitive on the tax basis and that they choose to continue to do business here on Ontario and pay corporate taxes here in Ontario.”

Stats Can data supports Duncan’s statement that the financial sector has added jobs since 2006.

But the trend has been downward almost from the moment the tax cuts kicked in on July 1, 2010.