Manitoba Credit Unions - Best, Better, So So - VS Oaken or Peoples Trust | Page 2 | GIC discussions | Discussion forum

There is risk throughout the Canadian economy right now due to the failure of the petro-economy.
Housing prices in Vancouver and Toronto, where there are a great many mortgages issued by chartered banks, are hugely inflated and likely to fall significantly.

However, some of the big banks have made much riskier investments overseas, and in things most of us are not familiar with. When they fail, they just shrug their corporate shoulders and move on. After all, it's not their personal money. Credit unions are run by members who have their own money on the line. I find this a more appealing arrangement.

My reference is historical, based on items that were in the news at the time. I did not retain the details and don't have any interest in trying to retrieve them as I am satisfied with what I remember. It has happened more than once and involved different banks.

I don't know how much detail they provide in their annual reports, but perhaps you can find information there about their current overseas interests and can evaluate them accordingly. As a shareholder, you ought to be able to find out, I would think.

Brian said

I did have the feeling you would not be able to provide just one example of ALL these "riskier investments overseas" which you indicated to have read in the news. Of course, banks (as well as most other businesses) do make investments which have risks (of varying degrees from very low, to moderate and higher) - fortunately, the major banks have a sufficient mix of profitable investments and operations to result in a very positive bottom line to benefit shareholders.

I really didn't think you were asking because you expected an answer. Anyone who wants to know can, I'm sure, research it themselves.

I'm glad you agree however that they do make high risk investments overseas.

Personally, as I said, I am more comfortable with institutions that don't do this.

I believe you posted some helpful info on this a while back, NorthernRaven, but not sure where it is!

As you suggest, it's a personal decision.

I'm not really interested in getting into a lengthy discussion of what makes me, personally, uncomfortable. That would involve putting these international investments into a whole discussion of the banking industry, ethics, the nature of our economy, global political economy, regulatory mechanisms, etc etc. I'm not prepared to go into that level of detail.