Wednesday, April 3, 2013

Canadian Derivative Exposure

Canadian Derivative Exposure

Below are notices issued by the Office of Superintendent of Financial Institutions Canada, as well as the derivative exposure of the six systemically important banks (i.e, which the Canadian government will protect in the event of a currency failure). Rather than protecting the people of Canada, our government is working behind the scenes to protect the shareholders and bondholders of the named banks.

Banks should be made to fail so we can rid the financial system of the leaches that have master-minded this planned financial collapse. Any ordinary corporation with liquidity, working capital or debt issues files for bankruptcy; our banks and our government collude to pick our pockets – THEY ARE THIEVES WHO SHOULD BE PUT IN JAIL!  Get rid of Harper and the Windsor queen. Buckingham Palace houses pure evil.

No one saw the demise of Cyprus and no one is paying attention to the Netherlands, because they are to busy focusing on Spain, Slovenia and Ireland, yet Great Britain is absolutely BROKE and it never makes the news.

Has anyone ever explained to the public to whom the Cypriot debt was paid to and why it achieved this end? The current global Ponzi scheme is the quintessential enigma.

 

 
255, rue Albert Ottawa, Canada K1A 0H2 www.osfi-bsif.gc.ca
Canada’s domestic systemically important banks identified


OTTAWA – March 26, 2013 – Canada’s six largest banks have been identified as being of domestic systemic importance, and will be subject to continued supervisory intensity, enhanced disclosure, and a one per cent risk weighted capital surcharge by January 1, 2016.

The Office of the Superintendent of Financial Institutions (OSFI) released the names of the banks, following careful consideration of the Basel principles, and in consultation with the Financial Institutions Supervisory Committee (FISC), which is chaired by the Superintendent and includes representatives from the Department of Finance, the Bank of Canada, the Canada Deposit Insurance Corporation, and the Financial Consumer Agency of Canada.

The Canadian domestic systemically important banks (D-SIBs) are the: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and Toronto-Dominion Bank. Further details can be found in the letter and advisory posted on OSFI’s website.

 
Q3 - 2012
Bank
$ Derivative
 
Exposure - Trillions
Royal Bank
$7,210,000,000,000
 
 
TD Bank
$3,770,000,000,000
 
 
Bank of Montreal
$3,680,000,000,000
 
 
ScotiaBank
$2,710,000,000,000
 
 
CIBC
$1,730,000,000,000
 
 
Natioanl Bank
$1,044,000,000,000
Per Financial Statement
Total
$20,144,000,000,000


January 24, 2013

From: Office of Superintendent of Financial Institutions Canada

To: Banks
Bank Holding Companies
Federally Regulated Trust and Loan Companies

Subject: G-20 Commitments for OTC Derivative Market Reform
http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/guidelines/capital/advisories/otc_deriv_let_e.pdf

The purpose of this letter to advise federally-regulated deposit-taking institutions of OSFI’s progress and contributions in implementing G-20 reforms for the over-the-counter (OTC) derivatives markets and to outline on-going and future initiatives.

OSFI will be reflecting central clearing principles and other planned reforms of bilateral counterparty risk management in an updated Derivatives Best Practices Guideline (B-7). This guideline will be updated in 2013, as more international convergence is achieved. More generally, as international consensus is reached on the issues referenced below, OSFI will revise and consult on the respective guidelines (e.g. CAR, Derivatives Best Practices, etc.) to more formally present its expectations and provide clarity on the practices of regulated institutions. Revisions to any guidance will follow the normal process involving consultations not only with the industry but also with other Canadian regulatory authorities and the public. It is expected that these revisions will all be completed during 2013.

As background, in response to the economic and financial crisis, G-20 leaders initiated a reform of the OTC derivatives market to improve transparency, mitigate systemic risk, and protect against market abuse. Included in the G-20 Leaders Statement at the Pittsburgh summit in 2009 was the following:

“All standardized OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements.”1

G-20 countries, including Canada, have committed to implement these reforms. In Canada, an inter-agency working group chaired by the Bank of Canada and including representatives from the Department of Finance, the Office of the Superintendent of Financial Institutions and the securities commissions in Alberta, British Columbia, Ontario and Quebec have been working towards implementing these objectives, in parallel with efforts by the financial services industry.

 
1 G-20 Leaders' Statement: The Pittsburgh Summit, September 2009. The statement is available at:
http://www.canadainternational.gc.ca/g20/summit-sommet/g20/declaration_092509.aspx?view=d- 2 -


Thank you,
Joseph Pede

1 comment:

Matthew Ehret said...

Great point. The British financial oligarchy needs to take a fall, but you forgot one thing: The Canadian Glass Steagall (Four Pillars)! Nothing can happen to stop the collapse, or the Bail-in regime from being used without bringing this into play. My organization produced a quick video on that here:
http://www.youtube.com/watch?v=qi0fYo2ngko
Keep up the good work
Matthew