Quote:
Originally Posted by GGG
I’d assume they will provide liquidity in exchange for the underlying value of high quality bonds at a rate that covers the interest. So the cost is the interest rate differential over a bunch of years.
|
The wipeout isn't in the bank, and you are correct they will be able to cover the spread for mitigation.
The real disaster here is the corrupt syndicate operation of the banking system that has not been corrected to date. Canada is also in a far worse situation.
Can anyone verify that insurance based banks such as ManuLife and SunLife have to have 2:1 on deposits?