Kennedy Would Allow Bank Mergers

[scribblet]

Hmm, I'm not really up on the economics of this, but on the face of it, I can't see this being good for consumers, only the banks.

http://www.theglobeandmail.com/servlet/sto...PStory/National

Would allow bank mergers, Kennedy says

CAMPBELL CLARK

OTTAWA -- Liberal leadership candidate Gerard Kennedy called yesterday for Canada to allow its banks to merge, as he carved out a set of business-friendly policies that he said would energize a complacent Canadian economy.

Although bank mergers are not usually considered a big vote winner with the Liberal rank and file, Mr. Kennedy said Canada has to shed old practices that handcuff the economy.

That includes deregulating the "protected" telecommunications industry to reduce costs for telephone and other telecom services, and action on an issue that has been controversial with Canadians: allowing big chartered banks to merge with each other and perhaps with insurance companies.

Mr. Kennedy said current restrictions have not led to more choice for consumers, but they have made Canadian banks less competitive. "We need to allow banks to decide if they're going to become larger," he told business students at Ryerson University in Toronto.

[jdobbin]

Hmm, I'm not really up on the economics of this, but on the face of it, I can't see this being good for consumers, only the banks.

Banks in Canada will shut down branches regardless. Let the banks merge and then let retail banks from elsewhere to set up freely.

[Ricki Bobbi]

Very interesting stuff. I thought Liberals were supposed to campaign from the left and govern from the right?

Does Kennedy actually have a shot at winning this thing now?

Appears that he believes he does.

It is a pretty complex issue, but it comes down to a matter of global competitiveness in the eyes of people advocating the mergers.

[Shakeyhands]

After the meeting this week, I'm sure that Kennedy will make a great finance minister for Rae.

[geoffrey]

After the meeting this week, I'm sure that Kennedy will make a great finance minister for Rae.

Liberals will not win a government under Rae, I'd said it a million times Rae doesn't have the appeal anywhere to gain them a single seat. Kennedy will win Ontario outright. I think the anyone but Iggy candidate with the most appeal is Kennedy, you'll see Dion's supporters go to him... will Rae's? Who knows. That's tough.

--

Policy wise, this is a great move. Shows the guy has economic sense. Our banks are becoming international institutions not really focused on Canada anymore, because they are preventing from merging and expanding their business. They can't be competitive internationally unless they focus their efforts more abroad. Do you have any idea the percentage of business say ScotiaBank or RBC does outside Canada? Canada is now a pitance to these companies.

Bank mergers are a necessity of bringing our economy into the 20th let alone 21st century. The ideas from Kennedy are refreshing... the CPC has shown they are happy with our 1920 style taxation and regulatory system... maybe we need to hand it over to a competent enterprising Liberal to change it up?

I will vote for a Kennedy led Liberal party, but that's as far as my Liberal support is willing to go.

Who the hell goes to branches anyways? Most banking is online or telephone now. Hardly anyone uses a teller.

[Ricki Bobbi]

Liberals will not win a government under Rae, I'd said it a million times Rae doesn't have the appeal anywhere to gain them a single seat. Kennedy will win Ontario outright. I think the anyone but Iggy candidate with the most appeal is Kennedy, you'll see Dion's supporters go to him... will Rae's? Who knows. That's tough.

--

Who the hell goes to branches anyways? Most banking is online or telephone now. Hardly anyone uses a teller.

I still think Rae has a better shot at winning as Liberal leader than any other candidate. He'll pick up far more votes on the left than he'll lose on the right.

Kennedy could well be the best ABI candidate. I think this thing is going to come down to the floor of the convention. Where do the minor candidates go after the first ballot? Will Kennedy, Dion or Rae drop off after the first ballot and play the role of kingmaker?

[August1991]

I see three points here:

That includes deregulating the "protected" telecommunications industry to reduce costs for telephone and other telecom services, and action on an issue that has been controversial with Canadians: allowing big chartered banks to merge with each other and perhaps with insurance companies.

...

He said in an interview that Canada must also look at allowing increased market access for foreign banks "to address what I'm convinced is a deteriorating amount of choice for consumers. We're not providing that [choice] -- for businesses, especially small and medium businesses, in terms of access to capital.

These are all sensible moves and they are inevitable.

We must allow more foreign competition in Canada (why not foreign airlines?) and the CRTC should be disbanded.

[southerncomfort]

I see three points here:

That includes deregulating the "protected" telecommunications industry to reduce costs for telephone and other telecom services, and action on an issue that has been controversial with Canadians: allowing big chartered banks to merge with each other and perhaps with insurance companies.

...

He said in an interview that Canada must also look at allowing increased market access for foreign banks "to address what I'm convinced is a deteriorating amount of choice for consumers. We're not providing that [choice] -- for businesses, especially small and medium businesses, in terms of access to capital.

These are all sensible moves and they are inevitable.

We must allow more foreign competition in Canada (why not foreign airlines?) and the CRTC should be disbanded.

Thumbs up for that one

[fellowtraveller]

Relative to consumer oriented, full service banks in the US - Canadas few national banks are already large - as was intended by the Bank Act.

Canada has had only a few, large banks for decades by design - doing so has provide considerable stability in our banking system- few of the national banks have ever come close to the shattering defaults seen in the USA. Consumers have paid a price for decades though -in lack of competition and high service charges. Another advantage of a few. large banks is the ability to have big pools of capital in one place.

So help me out here - how is the average consumer - not bank shareholders- served by allowing banks to consiolidate?

Seems to me that if they want to merge, they also won't mind wide open competition domestically?

[geoffrey]

So help me out here - how is the average consumer - not bank shareholders- served by allowing banks to consiolidate?

Because Canadian banks can return to their Canadian focus. There isn't enough market here for four big banks. That's why we see aggressive international expansion from those like ScotiaBank and RBC. Which is fine. But they aren't really Canadian banks anymore, and that's a problem.

If a company wants to merge, I say let them do so. It's not like you don't have alternatives with the massive amount of credit unions and the such in Canada. Companies like ING show that there is still a competitive edge.

Are you really that worried about having less tellers... like I said, no one uses them anymore anyways, anyone that does, needs to get over the irrational fear of the internet.

[jdobbin]

Liberals will not win a government under Rae, I'd said it a million times Rae doesn't have the appeal anywhere to gain them a single seat. Kennedy will win Ontario outright. I think the anyone but Iggy candidate with the most appeal is Kennedy, you'll see Dion's supporters go to him... will Rae's? Who knows. That's tough.

I will vote for a Kennedy led Liberal party, but that's as far as my Liberal support is willing to go.

Who the hell goes to branches anyways? Most banking is online or telephone now. Hardly anyone uses a teller.

Perhaps you should see what platform a new Liberal leader presents and who he taps as his lead on finance and industry.

I was not a huge fan of Chretien's secretive and controlling PMO but I did appreciate Paul Martin at the helm of finance for as long as he had it.

[jdobbin]

So help me out here - how is the average consumer - not bank shareholders- served by allowing banks to consiolidate?

Seems to me that if they want to merge, they also won't mind wide open competition domestically?

Consumers are already served by a large bank network of ATMs as well as businesses linked to the network. Canada will no longer be hurt by big bank mergers because credit unions in Canada are healthy competition and we can allow foreign banks as well as other retail banks based in Canada into the system.