Carney calls for new regulator body

The Bank of Canada made a forceful argument for a new financial regulatory framework Wednesday, saying the asset-backed commercial paper crisis could have been averted had one been in place.

Bank of Canada Governor Mark Carney and Deputy-Governor Paul Jenkins make their way to appear as witnesses at the Senate banking committee in Ottawa

OTTAWA — The Bank of Canada made a forceful argument for a new financial regulatory framework Wednesday, saying the asset-backed commercial paper crisis could have been averted had one been in place.

The central bank governor told a Senate committee that the country’s regulatory fiefdoms need a new mechanism to ensure individual financial watchdogs do not have blinders on that prevents them from seeing the bigger picture.

Carney said the central bank had warned years in advance about the risks involved with the $32-billion non-bank asset-backed commercial paper market, but its cautions were ignored.

“In one case, the issue was really the only serious capital market problem we have had in this crisis (and) had been identified by the bank some years in advance.”

The ABCP market was frozen for months, requiring a restructuring of the notes.

Carney’s argument for what he called a new “mechanism” that would require individual regulators to consider the wider implications of their actions came at the conclusion of a two-hour hearing with the Senate banking committee.

In other testimony, Carney said he believes there has been enough stimulus to take Canada out of recession later this year.

Carney described the economic conditions as uncertain, but expressed confidence that the billions of dollars in stimulus being advanced by Ottawa and the provinces, along with his own aggressive monetary actions, will work.

Just Posted

Candlelight vigil in Red Deer honours Sri Lanka Easter bombing victims

Dozens showed up to the event at City Hall Thursday night

Several Red Deer businesses’ phone/fax lines taken over by ‘spoofers’

Same ‘prank’ calls were made as happened with RedCliff RCMP

Red Deer apartment project opposed by some neighbours

Two buildings proposed for a site in Normandeau with existing four apartment complexes

Red Deer’s osprey cam celebrities are back

FortisAlberta has webcam set up at nest created as part of avian protection program

Red Deer PCN Women’s Fun Run introduces Community Diaper Dash

Central Albertans will make a dash in diapers to bring lunches to… Continue reading

Cast your votes for the Best of Red Deer

Nominations for the Best of Red Deer Readers’ Choice Awards are officially… Continue reading

Local Sports: Clayton Pottinger reaching for new heights

There are times in anyone’s life when they make a decision that… Continue reading

Seniors: Smarter living for older adults

One of the major life transitions characteristic of aging is leaving one’s… Continue reading

Opinion: Schools can’t be exempt from scrutiny

This weekend’s meeting of the Alberta School Councils’ Association promises to be… Continue reading

Bishop now the Stars goalie trying to beat Blues in playoffs

Ben Bishop grew up rooting for the St. Louis Blues before being… Continue reading

Nashville gets its chance to step up for NFL draft

NASHVILLE — Broadway in downtown Nashville is as lively a place as… Continue reading

The Cranberries, still in mourning, return for the last time

NEW YORK — Whether or not there would be a final Cranberries’… Continue reading

Dance studio owner in dispute with Burton Cummings fined for noise ticket

MOOSE JAW, Sask. — The owner of a dance fitness studio who… Continue reading

Most Read