[DLC Weekly Bulletin - April 1, 2009]
All financial activities that pose a “systemic risk” must be regulated to prevent future financial crises, Bank of Canada Governor Mark Carney said on Monday.
All financial activities that pose a “systemic risk” must be regulated to prevent future financial crises, Bank of Canada Governor Mark Carney said on Monday.
Acknowledging that global leaders face a mammoth task in directing financial reform, Carney called on G20 countries to construct a “robust financial order” that supports long-term economic prosperity during a speech at the University of Alberta.
He noted that it was “an era of self-absorbed finance” that caused the current calamity, adding the financial system ought to be “the servant” of the real economy.
Leaders from G20 countries will meet in London tomorrow to work toward an overhaul of the ailing financial system, while also tackling the global recession. – Toronto Star
The heads of Canada’s largest provincial securities regulators say they must be part of a high-powered new committee being designed by Ottawa to protect the financial sector from systemic risks – but they disagree on how they should be represented at the table.
The Harper government is drawing up plans for a committee of regulators to oversee the financial sector at the highest level, including representatives from the Bank of Canada, the Office of the Superintendent of Financial Institutions (OSFI), CMHC and the Canadian Deposit Insurance Corp.
Last Friday, the chairmen of several of Canada’s provincial securities commissions said they should also be part of the systemic risk committee, arguing they regulate a part of the capital markets where products or practices can emerge that imperil the stability of the financial sector. – Globe and Mail
Rates on 30-year mortgages in the US fell late last week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering US housing market.
Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85% last week from 4.98% the previous week. These rates are the lowest in the history of Freddie Mac’s survey, which dates back to 1971, and were down a full percentage point from a year ago.
Rates fell last week after the Fed said it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit. – Associated Press
No comments:
Post a Comment