From 1998 to 2003, the Canadian government received proposals from Canadian banks to merge, with each other, and with entities in the insurance industry, in order to compete with the big American financial institutions that were madly rushing into hedge funds and derivatives.
The liberal government of Jean Chretien and Paul Martin thought the idea was unwise and refused the request. They also initiated a review of banking policy that ended up favoring consumer protections over the new profit centers for the bank.
They also looked at the Canada Pension Plan. Like the U.S. Social Security system, economic and social factors had conspired to raise questions about it’s long term viability. What did the Americans do? After bickering and arguing for 20 years: nothing. What did Paul Martin do? Analyzed it, consulted with the provinces, and then fixed it. Done.
Canadian banks did not require a single dollar of government bail-outs during the world-wide financial crisis of 2008-2009. Not one dollar. Canada emerged from the global economic crisis with one of the healthiest economies in the G-8.
In 2002, Stephen Harper criticized the Liberal government for standing in the way of progress by blocking “innovations” in the banking sector. Now he struts around crowing about his management of the financial crisis.
Born on third base; thinks he hit a triple. Mr. Chretien and Mr. Martin left you a surplus, Mr. Harper. Where is it now?
The details of the Liberal approach to bank mergers.
More on the pressure resisted by Martin.
Calgary Herald thanks Jean Chretien.
And nice tribute from Newsweek.
From a Liberal website:
In 2002, Stephen Harper lambasted the then-Liberal government for “the failure to adapt bank regulation to the needs and challenges of a financial sector that is less and less national, and more and more global.”
Yes, it’s from a partisan source.