Canada Orders Wealth One Bank Shareholders to Divest | Wealth One Bank of Canada | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
Canada Orders Wealth One Bank Shareholders to Divest
September 3, 2023
10:15 am
kesa
Member
Members
Forum Posts: 195
Member Since:
February 14, 2023
sp_UserOfflineSmall Offline

https://www.bnnbloomberg.ca/canada-orders-wealth-one-bank-shareholders-to-divest-1.1966690

(Bloomberg) -- Canada’s Finance Minister Chrystia Freeland instructed three of the founding investors of Wealth One Bank of Canada to divest their stakes in the lender, Globe & Mail reported Saturday, citing documents obtained through an access to information request.

Toronto insurance executive Shenglin Xian, Vancouver property developer Morris Chen and Toronto grocery tycoon Yuansheng Ou Yang, were told in April to sell their shares in the bank, Globe reported, citing documents obtained from the Office of the Superintendent of Financial Institutions, Canada’s financial industry regulator. The investors face scrutiny from Canadian national security authorities about alleged links to the Chinese government, the newspaper said.

The finance minister ordered Wealth One to cut all ties with the three investors, and to put in place security measures to guard against money laundering and unauthorized sharing of information, according to Globe.

Globe said it couldn’t reach Ou Yang and Chen for comment. Glen Jennings, a lawyer at Gowling WLG, which is representing Xian, told Globe in a statement that his client is in regular communication with the authorities and expects a “good outcome for all stakeholders that will benefit all Canadians.” He added that matters relating to the bank are regulated and under rules of confidentiality and Xian has no comment to make at this time.

As finance minister, Freeland is empowered to act to address risks to any bank in Canada, Jessica Eritou, her senior communications adviser, told Globe. She declined to discuss the Finance Minister’s actions against Wealth One and its founders, the newspaper said.

Eritou reiterated the comments when contacted by Bloomberg. Wealth One Bank, Xian, Chen and Ou Yuang couldn’t be reached for comment outside regular business hours.

Among measures imposed on Wealth One: The lender needs to get national security vetting of all the bank’s employees, relocate its Toronto headquarters to new secure premises and sweep its corporate property for surveillance devices, the newspaper said. The institution is also prohibited from using the Chinese social-media messaging app WeChat for banking business, Globe said.

Additionally, the lender has to appoint an independent third-party monitor and hire two compliance officers: one for security compliance, with a valid national-security clearance, and one for anti-money-laundering and anti-terrorist compliance, Globe reported.

©2023 Bloomberg L.P.

September 3, 2023
10:36 am
Dean
Valhalla Mountains, British Columbia
Member
Members
Forum Posts: 1913
Member Since:
January 12, 2019
sp_UserOfflineSmall Offline

.
More 'Shyt' hitting the fan at W1BoC ❗

Once again ... this reeks of Communist China, for sure.

For those few here with $$$ still in there ... you were warned months ago.

Good Luck

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 4, 2023
1:17 am
RetirEd
Member
Members
Forum Posts: 994
Member Since:
November 18, 2017
sp_UserOfflineSmall Offline

CDIC still applies, up to the posted limits.

RetirEd

September 4, 2023
7:09 am
COIN
Member
Members
Forum Posts: 1107
Member Since:
March 15, 2019
sp_UserOfflineSmall Offline

I see a merger in the future.

Maybe HSBC. Oh wait, they are already in a merger. Maybe RBC.

September 4, 2023
7:38 am
AltaRed
BC Interior
Member
Members
Forum Posts: 2852
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline

RetirEd said
CDIC still applies, up to the posted limits.  

While that may be the case, for me, it would be a matter of personal integrity and conscience, why not to do business with them. Some would call it doing business with the devil.

September 4, 2023
9:11 am
Dean
Valhalla Mountains, British Columbia
Member
Members
Forum Posts: 1913
Member Since:
January 12, 2019
sp_UserOfflineSmall Offline

AltaRed said

While that may be the case, for me, it would be a matter of personal integrity and conscience, why not to do business with them. Some would call it doing business with the devil.  

    This ⬆ ❗

In my mind, the W1BoC should be Completely Dismantled, and it's sanitized bits and pieces auctioned off to other FIs.

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 4, 2023
12:37 pm
canadian.100
Member
Members
Forum Posts: 939
Member Since:
September 7, 2018
sp_UserOfflineSmall Offline

It does make me wonder what the true story is if Chrystia Freeland had to take such drastic action. For sure, there is much more to this story but we will likely never know the details. In the meantime, CDIC is around "to have the backs" of Canadians who choose to deposit with this FI.
If the inquiry into Foreign Interference ever happens, maybe more info will come out or perhaps not.

September 4, 2023
2:00 pm
Bill
Member
Members
Forum Posts: 3903
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Maybe there was no need for action, might be just that right now it's politically popular to look like you're serious about Chinese interests here. And as long as they're allowed to keep their charter, to operate here, I assume they are meeting legal requirements and are ok with the government of the day, which is all I care about. So I intend to keep the money we have there there for now, keeping in mind CDIC limits, naturally.

September 4, 2023
3:50 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 2852
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline

That is for one's own conscience, or not, whether to do business with this outfit. Many things are legal in our society but not necessarily things I would do due to matters of conscience and integrity.

FWIW, I think the bank has seriously broken a number of rules and the reason to have it secured in a particular location and firewalled, and the public warned. The moves are, as I understand it, unprecedented, so something seems definitely amiss. Is it really time to be an ostrich with one's head in the sand? Decide for yourself.

September 4, 2023
3:57 pm
Bill
Member
Members
Forum Posts: 3903
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Agreed, I don't think I have a conscience, integrity, etc when it comes to arm's length financial transactions, just go by what's legal.

September 4, 2023
6:41 pm
Rail Baron
Member
Members
Forum Posts: 266
Member Since:
November 3, 2022
sp_UserOfflineSmall Offline

I read recently that the Canada Pension Plan has 9.8% of its portfolio invested in China. That's a good chunk of change!

Perhaps W1BoC offers a bit of insurance on not seeing those investments suddenly disappear in the event of a geopolitical crisis?

September 4, 2023
7:45 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 2852
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline

I doubt it as Wealth One assets are a pittance compared to pension fund assets in China. See https://www.thestar.com/business/canadian-pension-fund-giants-grilled-by-federal-lawmakers-over-china-investments/article_0bdcbe75-075e-5af7-9bb9-0ed88a9a3769.html for more on this file. China is not about to confiscate/nationalize Canadian interests without causing a wholesale hemorrhage of other foreign investment in their country. The Wealth One problem is likely more related to money laundering type activities which China itself does not like to see (capital flight) either.

September 5, 2023
3:39 am
savemoresaveoften
Member
Members
Forum Posts: 2829
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

yeah China confiscate Canadian asset will be like Russian confiscating US assets ! I cant see that happening unless we have a WW3 and its China against US and allies !!!

September 5, 2023
8:20 am
Dean
Valhalla Mountains, British Columbia
Member
Members
Forum Posts: 1913
Member Since:
January 12, 2019
sp_UserOfflineSmall Offline

AltaRed said

That is for one's own conscience, or not, whether to do business with this outfit. Many things are legal in our society but not necessarily things I would do due to matters of conscience and integrity.

FWIW, I think the bank has seriously broken a number of rules and the reason to have it secured in a particular location and firewalled, and the public warned. The moves are, as I understand it, unprecedented, so something seems definitely amiss. Is it really time to be an ostrich with one's head in the sand? Decide for yourself.  

Like my Daddy used to say . . .

    "When it come to doing business ... some people got Scruples,
    and some don't."
    sf-confused

Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 5, 2023
6:41 pm
Loonie
Member
Members
Forum Posts: 9232
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

I find it refreshing that anyone is factoring in conscience on this forum.

September 11, 2023
1:26 pm
Jowett
Member
Members
Forum Posts: 30
Member Since:
September 19, 2018
sp_UserOfflineSmall Offline

Loonie said
I find it refreshing that anyone is factoring in conscience on this forum.  

Conscience may be overridden by money making. Wealth One is now the highest payer at 5.98 per cent on a 1 year GIC. They also have the same rate for an 18 month one.

September 11, 2023
6:43 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 2852
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline

Many of us have a price we can be bought at. Others not so much.

September 11, 2023
8:31 pm
mordko
Member
Members
Forum Posts: 778
Member Since:
April 27, 2017
sp_UserOfflineSmall Offline

savemoresaveoften said
yeah China confiscate Canadian asset will be like Russian confiscating US assets ! I cant see that happening unless we have a WW3 and its China against US and allies !!!  

1. Russia did confiscate assets owned by US companies.
2. Its not quite the same because the US might not be all that bothered/have other priorities than worrying about Canada’s assets, prefer to issue a strongly worded statement rather than start WW3.

Personally, I can’t imagine knowingly dealing with a bank on the brink of bankruptcy for a few extra dollars. Makes no financial sense, CDIC or not.

September 12, 2023
7:21 am
COIN
Member
Members
Forum Posts: 1107
Member Since:
March 15, 2019
sp_UserOfflineSmall Offline

mordko said
1. Russia did confiscate assets owned by US companies.
  

Russia also defaulted on their bonds circa 1917.

September 12, 2023
9:56 am
UkrainianDude
Member
Members
Forum Posts: 66
Member Since:
November 19, 2022
sp_UserOfflineSmall Offline

mordko said

Personally, I can’t imagine knowingly dealing with a bank on the brink of bankruptcy for a few extra dollars. Makes no financial sense, CDIC or not.  

I see no harm if you keep under 100k

No permission to create posts

Please write your comments in the forum.