Duncan - The danger posed by unregulated, speculative use of derivatives by banks has not yet been corrected by legislation. It is only a question of time before we are faced with another bank crisis.
The following is submitted for your consideration.The Harper government's budget submitted on March 21, 2014 calls for the bail-in of some banks considered 'too big to fail.'On page 144 and 145 of the budget, it states: "The Government also recognizes the need to manage the risks associated with systemically important banks - those banks whose distress or failure could cause a disruption to the financial system..." The government opposition parties should be demanding a fundamental review of the Canadian banking industry. It seems that bail-in is part of the solution but does not address the fundamental reasons why these banks involved in high-leaveraged speculation need rescue. Regulations are required.Another aspect which bothers me is why the usually highly profitable banks do not have to pay back any government crisis funds given to them and why these banks do not have to buy back the questionable assets our government bought from them.I have not been able to identify any negative impacts on Canadian banks for their indiscretion leading to a banking crisis. Nor have I been able to determine how much tax money was used to recapitalize the "rescued" banks during the recent crisis.A fundamental review by a royal commission is required.Gerry Masuda Duncan