Canadian banks 'received $114bn bailout during crisis'

1 May 2012

Canadian banks received a major secret bailout at the height of the global economic crisis, a new report has revealed.

A new study published yesterday by the Canadian Centre for Policy Alternatives (CCPA) revealed that financiers in the North American country benefited from billions of dollars worth of support to prop them up in the two years between 2008 and 2010.

The Big Banks' Big Secret paper produced by the independent body - which was founded in 1980 - revealed that Canadian banks were privy to cash and loan support from the US and Canadian governments worth $114 billion throughout this time.

During the financial downturn, the Canadian government and the lenders themselves were eager to portray the nation's financial system as being more stable than others around the world.

However, the CCPA's research indicates this was not the case, with David Macdonald, author of the report, stating it is clear financiers "benefited enormously from public financing when private funds were unavailable".

By Gary Cooper

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