American Government Attempting To Dictate Rules To Canadian Banks

The U S Government, through the Volcker rule, is attempting to regular how Canadian banks do business both within Canada and with Canada’s other trading partners around the world.

“The Volcker rule is named after former Federal Reserve chairman Paul Volcker, who was commissioned by the White House to come up with U.S. financial reforms.

The reforms aim to lower the exposure of banks holding personal and business cash deposits to the risks from speculative trading for their own profit, something known as proprietary trading.Those deposits, to a large extent, are insured by the U.S. taxpayers.

Risky bets by big global banks forced the U.S. government to bail out the American banking system in 2008.”

Someone should remind the Americans that Canada is not part of the U.S. If the American Government want rules about financial reforms that affect American banks that’s fine, but they should not include foreign banks.

Read more here.