Canadian Banks: the "next shoes to drop"?

[JohnyCanuck]

Check out RBC and CIBC customers' apparent exposure to disaster due to the practice known as "rehypothecation"!

"Canadian Imperial Bank of Commerce (re-pledged $72 billion in client assets), Royal Bank of Canada (re-pledged $53.8 billion of $126.7 billion available for re-pledging)"

Basically they are using the same collateral over and over again on many loans. Of course, being global entities they can shop for the most favourable legal and regulatory system in which to hatch their nefarious plots and schemes.

Then, when it all blows up, they play the too-big-to-fail, get-out-of-jail free card from the last time they passed GO! And all that makes the MSM news here is that Occupy Toronto left the damn park a bit messy! It makes my blood boil. As my late dad used to say: Wake the F up people!

You couldn't make this stuff up with a straight face! Imagine trying it on your local bank's loan manager? What do you mean I can't pledge my car against four loans at once?

http://yayacanada.blogspot.com/2011/12/canadian-banks-next-shoes-to-drop.html