Would Harper let banks take your money?


Council Member
Feb 16, 2005
In the federal government's last budget, the conservatives propose a ''bail-in'' plan for important banks in the case of depletion of their capital. In chapter 3.2, you can find this:

The Government proposes to implement a “bail-in” regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

Systemically important banks will continue to be subject to existing risk management requirements, including enhanced supervision and recovery and resolution plans.

This risk management framework will limit the unfair advantage that could be gained by Canada’s systemically important banks through the mistaken belief by investors and other market participants that these institutions are “too big to fail.”

Budget 2013 - Budget Plan: Chapter 3.2 - Helping Manufacturers and Businesses Succeed in the Global Economy

What does ''certain bank liabilities'' mean? Does it mean the money of our bank accounts or am I being paranoid?


Hall of Fame Member
Jan 23, 2009
The first 100 K is covered by insurance. Same as in Cyprus. So if the world economies went all to hell it could happen.
And it is not Harper, banks now are to big to fail. When they failed in the dirty 30's everything was lost.
So tagging Harper with this is incorrect. What ever Govt is in power would make the same decision.

One reason why the dirty 30's lasted so long was the lack of ability to borrow funds.
The same amount of money was in the economy the day before Black Friday and the day after. Confidence and not able to borrow followed by countries protectionist trade barriers increased the severity and the length of the Great Depression.
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