Prime Minister, would you call the banks again?
2020/10/27
It was March 26. Canada and scores of other countries were plunged into the jaws of a pandemic. Canadian infections were reported at 3,845 up 436 in 24 hours but it was the predictions of what to expect in the next few weeks that frightened most of us because of their uncertainty.
The Prime Minister was holding numerous meetings and holding forth publicly about the rapidly moving pandemic. His daily briefings were designed to keep the nation informed and reassured. A quick World-o-Meter check easily neutralized suggestions by some medical experts that Canada would some how duck the haymaker COVID 19 had unloaded in places like New York, 35,000 infections and Italy, 92, 472 – up almost 6 thousand in 24 hours. The Prime Minister’s daily seemed to be more reassuring. He was talking about immediate Federal relief and bringing needed medical supplies (PPE) solicited from China and Australia.
He also revealed the Big Banks were going to help with corporate interest rates and yes, his office had been in touch with the BBs asking the financial giants to ease the crunch of credit cards, most of which charge between 20% and 30% a month. “Would they please reduce the interest rate burden,” he asked. The request came at exactly the time most households across the country were making plans for numerous on-line purchases, most of which required credit cards. Obviously, a windfall situation for the Bankers. Unanticipated credit card charges as thousands ordered in groceries, pet supplies,wine and beer, and so much bathroom tissue some stores ran out and others restricted purchases, all of these necessities of life paid for on credit. And how did the bankers react? As George Bailey in Capra’s It’s a Wonderful Life? Or as that horrible skinflint Mr. Potter? Guess!
Would have loved to been a bug in the telephone calls the Prime Minister received from incredulous bankers who I imagine declared with substantial venom, that a request asking for relief on credit card debt for hoi polloi was not on anybody’s table. Period. And Prime Minister don’t bring it up again. And guess what, he never did!
You can look it up. For their part the banks reluctantly gazed at their millions of card holders and came up with a plan. If they discussed the generous position of car insurance companies we don’t know. The insurance companies as you know without asking for proof that drivers were driving less because of the lockdowns in March and April sent along a rebate cheque representing part of your insurance premium.
The Bank’s plan was designed to get maximum publicity out of an interest rate reduction gambit. On the face of it it looked a little like a George Bailey plan but a second glance clearly reflected the image of OLD MAN POTTER.
The big 5 said they would be reducing interest rates on credit cards but there’s a catch. Card interest would be reduced by half and there could be a deferral of payments for up to six months. Doubtful you could have been granted both. The big catch of course, unlike the car insurance people, you, the card carrying sap, would have to apply for relief . And let’s face it, Covid 19 or not, calling your credit card “buddies” asking for deferment or rate reduction because of hardship real or imagined is not good optics. It might be real to you but more imagined by your lender.
As we have come to know them the Banker gives nothing away. You will humble yourself to get that interest rate relief or deferment but all the prime minister was asking the banks to do is knock off the exorbitant credit rates while the lending rates to the banks dropped to near zero.
Simple request but the banks see it as complicated because reducing interest rates frustrates the head office bean counters and screws up the bottom line. But I don’t think the bankers approved every request for lower interest and/or payment deferral. Why do I think this? Because in some cases card holders have been asking their lenders to raise their spending limit in order to buy the necessities of life. A request to raise the debt limit means re-negotiating and there could be some Bankers Covid 19 or not, would feel that is not what the Banking fraternity pledged. Raising the credit limit, lowering the interest rate and granting a payment deferral alters the stakes. It can complicate matters and you probably have first hand experience with bankers. They don’t welcome complications.
Funny how that works even in a pandemic!
The Prime Minister made his pitch to the banks on March 26. And the interest reductions and payment deferments made it to Media April 4 but with the catch.
You prove to us you need the relief.
These days we are moving into the Second WAVE with gusto but the interest reductions and payment deferrals are long gone. Now what?!?
Hello, Prime Minister, hello,hello.hello. Was that a dial tone I heard or was it a click, or both?
DODGING the BULLET…
2019/04/15 Leave a comment
“I want immunity from prosecution” is the rallying cry of today’s capitalist. “Give me of dose of DPA and fill my pockets with tax money collected from the hoi polloi and don’t worry about the fallout”. Today’s Media news outlets are unable to sustain interest in the most egregious skullduggery in the marketplace because they are suffering from informational ADD. Obviously, while the quotes cannot be attributed to a particular business person the meaning and sentiment of these words can be proven beyond a doubt.
Exhibit A: SNC Lavalin, a corporation that has been trying to convince its friends in the Justin Trudeau cabinet that it is deserving of a Deferred Prosecution Agreement for several reasons: (1) it employs hundreds of Canadians, (2) it doesn’t want to go to court and face bribery and corruption charges like the common crook, and (3) SNC has been a long time contributer to the Liberal campaign kitty! Surely even if the former Attorney-General Jody Wilson-Raybould couldn’t understand that, many Canadians, especially those unconcerned about the proper administration of Justice in Canada could see the validity of giving SNC, that “signature” company, a free pass. After all, “we are a Quebec company playing for Team Canada.”
And not surprising, there are many Canadians who support the idea that you should be able to buy Justice. They support the idea that you should be able to buy your way around charges of bribery, kickbacks and racketeering. They say, why should you have to face charges in a Court of Law when you can pay money and get a DPA. Certainly people break the law everyday. I mean look at the Prime Minister. He broke four campaign related laws in 2016 and the RCMP knew about it and they didn’t blink an eye. As a matter of fact, the Mounties covered up the details for 818 days, violating the Access to Information and Privacy Act in the process.
So if the Prime Minister and the Mounties can get away with this kind of lawlessness, why not SNC Lavalin? Besides this Lavagate dust-up will be long gone before the election. The Media in Canada tire easily, besides boasting some of the laziest members of this fraternity in the free world.
Exhibit B: What ever happened to the great Canadian bread price fixing scandal? When was the last time any major media members wrote a follow-up on a status of the unresolved Breadscam? It’s been about a year and would still be collecting mould if it hadn’t been for the recent news that Loblaw has happily been given 12 Million dollars to install new refrigerators in their stores as part of Mr. Trudeau’s carbon-tax scam-(another story, for another time). This story involves the Bread Price Fixing Seven!!!
But here is Loblaw, a company that led the price fixing of bread for 14 years, costing each home in this country an estimated 400 dollars, getting free money from the consumer. Did we just brush off the immorality of price-fixing? Loblaw, with 6 fellow conspirators, fixed the price on the staff of life, sometimes the only item people can afford to buy regularly. And now, from the very people Loblaws stole from, it’s getting 12-million dollars for fridges. Fridges that could very well hold other products subject to price-fixing that we will never know about. Further to the incredible thought of anyone in this country fixing the price of bread is the lack of outrage by the consumer. And what about the Media? Have they forced the Competition Bureau to finish the story? They have not and consequently the Competition Bureau has not. Silence is the best information killer.
Price fixers, if found guilty, face a 25-million dollar fine or up to 14 years in prison. To date no convicted price fixer has ever seen the inside of a Canadian jail. Will Loblaw, Weston Bakeries, Canada Bread, Sobeys, Walmart, Giant Tiger, Metro ever be brought to justice? Of course not because three years after Loblaw blew the whistle on its disgusting conspiracy to fix Bread Prices–NO Charges have been laid and Loblaw has been given immunity–which means they won’t be prosecuted! The status of this um…”INVESTIGATION” continues in the great state of, “LIMBO”. This is a great country, isn’t it? If you have scammed customers over 14 years for, say 5 or 6 million of them, you just blow the whistle on your little scam and kazzam you give the little people a 25 dollar certificate and daddy in Ottawa will ‘smile and nod.’ “Love this immunity from prosecution-thingy.”
Exhibit #C: We are told that Canada is on the short list of countries vulnerable to drug money laundering transactions. As a matter of fact we have been designated as a major money laundering country where foreign drug-trafficking gangs are exploiting weak law enforcement and soft laws! Are you kidding me? Canada? Oh yes, there is a problem with a lax approach to law enforcement with respect to companies trying to avoid bribery and kickback charges. And the failure to demand that highly placed-politician(s) answer to law breaking. In fact the Royal Canadian Mounted Police, the “national force for good” in the Country helped cover-up some law-breaking but surely that was all minor stuff. Nevertheless you know what they say–bad behavior starts at the top! An unsavory CEO usually means laxity and bad habits among the lower echelon. So I guess we shouldn’t be surprised if Canada is lumped with other International money laundering tramps like Afghanistan, The British Virgin Islands, China, Columbia and Macau. A recent report confirms crime networks, trafficking proceeds from China, could have laundered one billion dollars through the purchase of homes in Vancouver in 2016. Toronto’s real estate market has also been artificially bumped. One report says some tracking has zeroed in on more than 28 billion in opaque investments. Seems a little high but it’s probable 10% or almost 3 billion represents ill-gotten gains.
Surprised that Canada is lumped in with the worst of the worst in money-laundering? Don’t be. Most Canadian provinces fail to prosecute money laundering. The reports relating to this Canadian crime infestation make it quite clear that this country is under pressure from legitimate and illegitimate actors because the word is out, oversight in Canada is practically non-existent.
Even the Prime Minister will go to bat for you if you represent a “signature” presence in the country and you have a substantial sum to spend on his party’s re-election.
Canada is a mecca for the capitalist who craves immunity!
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Filed under daily comments, Uncategorized Tagged with bad actors, bread, loblaw, money-laundering, mounties, price-fixing, whistle