tag:blogger.com,1999:blog-31427364.post4643644197119070004..comments2024-03-26T03:52:23.395-07:00Comments on Housing Analysis: Bank Raises Rates on Variable Rate Mortgagesmohicanhttp://www.blogger.com/profile/06094213357140749289noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-31427364.post-11634882885919676662008-10-07T23:27:00.000-07:002008-10-07T23:27:00.000-07:00Can we trust Gary Siegle words? (regional manager ...Can we trust Gary Siegle words? (regional manager at mortgage broker Invis)<BR/><BR/>This article is really an appropriate in this times during the wall street issues.<BR/><BR/><A HREF="http://www.bizblogged.com" REL="nofollow">BizBlogged - Finance blog,finance,economics,Corporate finance,Personal finance,Investing,Marketing</A>zuppermaxhttps://www.blogger.com/profile/16058001195342551752noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-4462436464197701712008-10-07T21:05:00.000-07:002008-10-07T21:05:00.000-07:00If the competency of their chief economist is any ...<I>If the competency of their chief economist is any indication, it will be a big 5 bank that will take them over</I><BR/><BR/>I've never head of a bank taking over a failed credit union. One, there are corporate and customer culture issues which make them unattractive as takeover targets for banks, and two the bank would be unlikely to expand market share.<BR/><BR/>As long as the big CU's are standing, they will absorb the small ones. As i have said, the question is what happens if one of the biggies gets into trouble.<BR/><BR/>Ironically, Vancity wanted to take over Bank of BC in the 80's, but was blocked by the Bennett government because of its NDP connections.patriotzhttps://www.blogger.com/profile/11154064267408955762noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-72871497341970125132008-10-07T15:50:00.000-07:002008-10-07T15:50:00.000-07:00"Definitely expect credit union failures, these al...<I>"Definitely expect credit union failures, these always happen during downturns and the victim just gets absorbed by a bigger CU."</I><BR/><BR/>If the competency of their chief economist is any indication, it will be a big 5 bank that will take them over; I doubt the other CUs will be in any position to assume an insolvent business.jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-59261363866106016562008-10-07T14:36:00.000-07:002008-10-07T14:36:00.000-07:00I'm a little nervous myself. My Visa is with CIBC...I'm a little nervous myself. My Visa is with CIBC and my chequing account is with Coast Capital. If anyone goes belly up in this thing those two are my prime picks. Maybe I should shop around for a new bank sooner rather than later.Ryanhttps://www.blogger.com/profile/10104704096049638272noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-80587434111720538032008-10-07T14:28:00.000-07:002008-10-07T14:28:00.000-07:00This only affects new mortgages. It would be inte...This only affects new mortgages. <BR/><BR/>It would be interesting to see what happens if a big Credit Union goes belly up. Big bank acquisition target is the most likely outcome.mohicanhttps://www.blogger.com/profile/06094213357140749289noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-70110258647073021272008-10-07T13:52:00.000-07:002008-10-07T13:52:00.000-07:00Does this affect people with existing variable rat...Does this affect people with existing variable rate mortgages, or only new mortgages?Ryanhttps://www.blogger.com/profile/10104704096049638272noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-25774474638671631072008-10-07T11:32:00.000-07:002008-10-07T11:32:00.000-07:00Remember Bank of BC and two Alberta banks failed i...Remember Bank of BC and two Alberta banks failed in the 1980's resource/RE bust - sort of a north of 49th version of S&L.<BR/><BR/>Now there's just Canadian Western Bank which from all accounts is one of Canada's most conservative. Other banks have their exposure spread across the country or in non-bubbly Quebec.<BR/><BR/>Definitely expect credit union failures, these always happen during downturns and the victim just gets absorbed by a bigger CU.<BR/><BR/>But the 64 billion question is what would happen if a biggie like Coast Capital or Vancity got into trouble.patriotzhttps://www.blogger.com/profile/11154064267408955762noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-53679900239093673092008-10-07T10:19:00.000-07:002008-10-07T10:19:00.000-07:00Anything is possible. The less diversified financ...Anything is possible. The less diversified financial institutions will be hit hardest and fastest. <BR/><BR/>Regional banks / credit unions based in markets where the housing market is falling are at the highest risk.mohicanhttps://www.blogger.com/profile/06094213357140749289noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-23730637938701101282008-10-07T09:34:00.000-07:002008-10-07T09:34:00.000-07:00Does anyone think a Canadian bank failure is a pos...Does anyone think a Canadian bank failure is a possibility? We keep telling ourselves we're different but this is the a sign that Canadian banks aren't completely immune for the crisis. I thought it was going to be bad but not this bad. Stock market plus real estate crash is going to suck a LOT of money out of the system.AndrewJhttps://www.blogger.com/profile/04813082701244060724noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-59261940070676765652008-10-07T08:19:00.000-07:002008-10-07T08:19:00.000-07:00The word on the street has it that over half of ne...The word on the street has it that over half of new mortgages were Variable Rate and that the spread on the banks borrowing costs and what the customer was paying was well into negative territory - ie - the banks are subsidizing the mortgage. We'll see later today if the rest of the banks follow.mohicanhttps://www.blogger.com/profile/06094213357140749289noreply@blogger.com