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Email this6:55 am
August 4, 2010
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You'd want to check the details of the GIC's terms and conditions. It might be that though the payment (or compounding) was annual, the actual interest accrual calculations might be done daily, or monthly. if so, the interest would be "earned" at that frequency, and CDIC might pay it out as earned if the GIC contract was cancelled.
7:25 am
December 17, 2016
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frank87 said
CDIC indicates that they aim for reimbursement within 3 business days: http://www.cdic.ca/en/about-cd.....s.aspx
From that same link
CDIC would hold registered deposits in RRSPs, RRIFs and TFSAs for several days while it works with the Canada Revenue Agency to ensure they remain tax-sheltered. CDIC would contact these depositors directly to inform them of next steps.
8:21 am
September 11, 2013
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NorthernRaven, I don't think it matters what a GIC's terms and conditions say, you are in fact earning interest every single day, regardless of when it's calculated for compounding or payment purposes. For example, when you are cited an annual rate of, say, 3% then you are earning 3%/365 every day no matter what the terms and conditions provide for, and that's what CDIC will calculate and cover. That's my understanding.
8:23 am
August 4, 2010
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Bill said
NorthernRaven, I don't think it matters what a GIC's terms and conditions say, you are in fact earning interest every single day, regardless of when it's calculated for compounding or payment purposes. For example, when you are cited an annual rate of, say, 3% then you are earning 3%/365 every day no matter what the terms and conditions provide for, and that's what CDIC will calculate and cover. That's my understanding.
I suspect that's the case, but anyone making decisions on GIC payment options because of CDIC repayment worries should double check, not assume.
11:25 am
December 17, 2016
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From today's National Post (per Bloomberg)
Two former Home Capital brokers were penalized by Ontario watchdog
http://business.financialpost......o-watchdog
According to Equifax, mortgage fraud jumped 52 per cent last year from 2011, showing the issue may only be growing.
11:54 am
September 11, 2013
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NorthernRaven, I agree, you are right, the GIC contract provides the basis of how the accrued/earned but yet unpaid amount of interest is calculated for insurance purposes, and that is separate from the general principle that interest accrued/earned but not yet paid out as of default day is covered in the first place. Those are my understandings based on phone conversations with CDIC officers.
2:40 pm
October 21, 2013
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Top It Up said
From today's National Post (per Bloomberg)Two former Home Capital brokers were penalized by Ontario watchdog
http://business.financialpost......o-watchdog
Let's be clear. These people were NO'T employees of HCG. They are the ones who deceived HCG and started this whole mess.
2:45 pm
December 17, 2016
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From today's National Post - a couple of Portfolio Managers openly crying for a Canadian taxpayer funded bailout of HCG
Dear Mr. Morneau: It’s time to step in and save Home Capital
2:50 pm
December 17, 2016
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Todays Liquidity and Deposits update from HCG
http://www.homecapital.com/pre.....202017.pdf
It would appear, by today's numbers, that there's been limited uptake of Oaken's sweetened GIC interest rates.
4:29 am
April 28, 2017
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Top It Up said
It would appear, by today's numbers, that there's been limited uptake of Oaken's sweetened GIC interest rates.
Chalk me up as one of the contributors. There must've been 9 others.
Let's see if the "limited" per day is sustained for the next 30 days or so...
7:34 am
April 22, 2017
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Top It Up said
From today's National Post - a couple of Portfolio Managers openly crying for a Canadian taxpayer funded bailout of HCGDear Mr. Morneau: It’s time to step in and save Home Capital
If you actually read the article and not just the title, they call for the Big Banks to offer a LOC similar to what was offered to Equitable, which was what they were already preparing to do if not for the immediacy of the liquidity crisis.
7:45 am
December 17, 2016
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From the National Post article
He [Morneau] should encourage Canada’s big banks to do what they recently did for another alternative Canadian mortgage company (Equitable Bank), provide a lending backstop that halts a run on deposits and gives Home time to move forward. Perhaps a short-term lending facility by the Bank of Canada accompanied by a Ministerial statement to Home depositors and mortgage holders about the guarantees provided by the CDIC would help.
encourage the banks - yeah, right ... if the big banks wanted to do business with HCG it would have already happened ... I'm sure the big banks might be encouraged with some tax breaks from the government (read taxpayers).
What part did I miss? OR are you in favour of the government threatening the big banks if they don't help out?
8:54 am
April 6, 2013
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No encouragement is needed.
Contrary to that National Post opinion piece, the big banks were in the process of giving Home Trust and Home Bank a backstop similar to the one they gave Equitable Bank.
Unfortunately, Home Trust and Home Bank were in a hurry and couldn't wait for the usual diligence to be done for a less-onerous backstop from the banks. Instead, they had to quickly sign on with the backstop offered by the Healthcare of Ontario Pension Plan syndicate.
9:20 am
December 17, 2016
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YEAH, so where is that deal - here's what Hibben said way back on May 11th
“The top priority if I would be able to point one is somebody who would write a liquidity piece” with medium-term notes, Hibben said. “Somewhat similar to the Equitable deal, but as you can imagine the market is thin for these sorts of things.”
9:37 am
April 6, 2013
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Not sure why medium-term notes are needed. The syndicate of big banks can just take the $2 billion out of their quarterly profits.
Royal Bank just reported Q2 2017 net income of $2.8 billion. Bank of Montreal reported $1.25-billion. TD Bank reported $2.5 billion. There's $6.55 billion from just three of the big banks in the Equitable Bank backstop syndicate.
In another three months, the three banks will have another $6 billion of profits to do business with.
If Home Trust and Home Bank could have waited a bit longer for their $2 billion backstop, they would have been able to get one like Equitable Bank did.
9:48 am
December 17, 2016
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Norman1 said
If Home Trust and Home Bank could have waited a bit longer for their $2 billion backstop, they would have been able to get one like Equitable Bank did.
Do you know that for a fact? do you have insider information?
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With each and every passing day, it's looking more and more like HCG ain't the "great" company, with the well-managed mortgage book, that so many on this forum are making them out to be.
10:41 am
April 22, 2017
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Top It Up said
Do you know that for a fact? do you have insider information?
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With each and every passing day, it's looking more and more like HCG ain't the "great" company, with the well-managed mortgage book, that so many on this forum are making them out to be.
Read the Globe piece from a few weekends ago. A senior banker from one of the Big Banks did approach Home's board about providing a line of credit as part of a syndicate.
Instead of repeating your points ad nauseam, how about providing some facts that back up your claims? Home's book of mortgages have non performing rates and loan loss rates similar to that of the Big Banks.
10:55 am
December 17, 2016
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frank87 said
Read the Globe piece from a few weekends ago. A senior banker from one of the Big Banks did approach Home's board about providing a line of credit as part of a syndicate.
For those of us who are pay-walled from the G&M article, perhaps you can capture that entire senior banker part of the story and post it on this thread, 'cause I'm sure Alan Hibben wants to talk to that same senior banker.
11:05 am
April 22, 2017
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Top It Up said
For those of us who are pay-walled from the G&M article, perhaps you can capture that entire senior banker part of the story and post it on this thread, 'cause I'm sure Alan Hibben wants to talk to that same senior banker.
Cut and paste:
"As the board was taking steps to negotiate the HOOPP loan, a senior Canadian banker came forward with another offer, according to a source involved in the financing.
The offer included a $2-billion line of credit backed by Canada's largest banks, at a much lower interest rate, along with a proposed candidate for a new CEO and proposed new board candidates. But the source said the offer came when Home Capital was late in negotiations with HOOPP..."
It was also mentioned in a BNN interview with Andrew Willis, the author of the piece:
11:11 am
December 17, 2016
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"...along with a proposed candidate for a new CEO and proposed new board candidates."
That deal was NEVER close - HCG's hubris won out and they refused to accept the "banks" conditions - as they say, it was a non-starter from the get-go.
Please write your comments in the forum.