Quote:
Originally Posted by Mr.Coffee
People say that Canadian banks are impenetrable but that defies logic and common sense and is not correct. The government only backstops about I think 30%. If there’s a run, we are ####ed.
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The government just continues to backstop the withdrawals against the treasuries the banks have securing them. Essentially the government just lends the banks money to cover the liquidity and you do it in exchange for shares backing the loans.
The money is all there.