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November 4, 2022
6:55 am
TommyT
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Loonie said
No doubt it can be done, but it's not exactly the Welcome Wagon! Not everyone has an account with EQ and clearly they don't care if you never do.

I don't have an account with Wyth, and almost no money at EQ. EQ is a bank of last resort for me and will remain so. It certainly deserves its place among the "Big Seven".  

EQ Bank could easily go bankrupt or insolvent. Like I said before Home Trust, Home Bank, Canadian Western Bank and EQ Bank all of them could go bankrupt.

November 4, 2022
9:19 am
Doug
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AltaRed said
I never had anything with Wyth so don't know what EQ will do with Wyth GICs (if there are such things). In the case of Concentra Bank GICs sold through brokerages, I would expect they will just continue on to maturity since I believe Concentra Bank will continue as an entity. Concentra Trust will certainly continue as an entity.

When Desjardins wrapped up Zag Bank (albeit a slightly different case than an acquisition), they handled it in a couple of different ways. The primary way was to buy out the GIC with full interest to end of term....just to get rid of them, and that was a super deal for the investor. I think that process was limited to GICs maturing in less than 2 years. I think longer term ones were allowed to carry on to maturity albeit my memory is a little foggy now.  

Yes, and to be clear, in reply to RetirEd's post #15, I never said Wyth GICs wouldn't be continuing. However, that doesn't mean that EQB Inc. will continue to maintain four bank and trust subsidiaries. They could very easily amalgamate the Concentra Bank business into Equitable Bank and the Equitable Trust business into Concentra Trust, renaming the latter as Equitable Trust, and all existing GIC terms and maturities would be maintained. I suspect they will do this.

Note this is only for direct-to-consumer GICs, which are problematic to maintain in a separate platform. The brokered GICs are much, much easier to transfer across legal entities.

To RetirEd's point, yes, Ally was actually bigger in HISAs. They had something like $1-1.5 billion in HISA deposits at their peak, if I remember correctly. They closed the HISAs and paid them out to one of the customer's linked external accounts. GICs of ResMor Trust Company were continued by RBC Royal Bank, but under their existing terms and maturities. That's why I say the Wyth/EQB approach is very similar to Ally Canada in so many ways. Zag Bank is also very similar, with the above noted difference AltaRed mentioned. (His memory is the same as mine.)

Cheers,
Doug

November 4, 2022
9:26 am
Doug
British Columbia, Canada
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TommyT said

Long EQB? Why on earth would you pick that one to be long?
I've been short EQB and Home Capital since March this year.
Both are third tier lenders exposed to the Ontario housing market.  

I wouldn't classify them as "third tier lenders." It's true that I lost money on Street Capital Bank of Canada, but Street Capital had a different corporate structure and a different business model. The Concentra business significantly diversifies the business of EQB Inc. from being more of a pure-play deposit and mortgage issuer.

Home Capital Group does have some added business risk relative to EQB, and I don't like that it's even less diversified than before (i.e., no merchant payments business and limited other businesses). On the other hand, they have done so many significant issuer bids in recent years, their outstanding share float is now even significantly less than before the Buffett capital injection and share issuance. They've got something like 61-62 million shares outstanding. That's a lot of share buybacks. It's still not my preference, but I do expect them to either continue the share buybacks or increasing their dividend (probably the latter now, with the federal government's 2% announced share buyback tax, which I actually weak-ishly support).

Cheers,
Doug

November 4, 2022
10:40 am
AltaRed
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While I understand not many folk like the boorish, pontificating and egocentric Andrew Moor, he has done quite the job re-making Equitable into a presence on the banking scene. He is building some sound ground/foundation with the Concentra purchase while still cheerleading Open Banking and obviously wants to be front and center in some form when that comes about.

I'd suggest EQB is now more diversified than any of its relatively direct competition, i.e. Home Capital, Laurentian Bank and Canadian Western Bank. It may well be worth being a shareholder some day but maybe not now, and not if one is more inclined to own one or more of the big six.

November 4, 2022
1:26 pm
Doug
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Serious question: Does anyone have any objections to requesting this thread be renamed to the following:

Gone Wyth the times...

or similar play on words? sf-cool

Cheers,
Doug

November 4, 2022
1:28 pm
savemoresaveoften
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TommyT said

Long EQB? Why on earth would you pick that one to be long?
I've been short EQB and Home Capital since March this year.
Both are third tier lenders exposed to the Ontario housing market.  

When u say short, u mean sell short the stock or ??

November 21, 2022
7:34 pm
Pirithous
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AltaRed said
I am surprised (what I expected) the default option is not to roll the Wyth HISA into an EQ Bank HISA rather than account closure.  

Was a bit surprised as well, though after a bit of consideration, perhaps not such a bad thing either. EQ seems to be a bit hit and miss with customer satisfaction.

Definitely sad to see Wyth go though. Was pretty satisfied with it for what I needed and it was so easy to set up and use.

Pirithous

"Sometimes I do what I want to do. The rest of the time, I do what I have to."

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