Q: Hi 5i Team,
Can you please comment on the report from Seeking Alpha today that Moody's has downgraded big Canadian banks (e.g., BNS) to "negative" due the prospect of "bail-in" legislation being passed in Canada?
Also, any quick thoughts on how investors with discount brokerage accounts should respond to the possibility of a "bail-in" occuring should something really go wrong with their bank? Does it mean investors would take a haircut if they held stocks and bonds in their brokerage accounts?
If so, is there any defence an investor can mount?
Thanks so much.
Michael
Can you please comment on the report from Seeking Alpha today that Moody's has downgraded big Canadian banks (e.g., BNS) to "negative" due the prospect of "bail-in" legislation being passed in Canada?
Also, any quick thoughts on how investors with discount brokerage accounts should respond to the possibility of a "bail-in" occuring should something really go wrong with their bank? Does it mean investors would take a haircut if they held stocks and bonds in their brokerage accounts?
If so, is there any defence an investor can mount?
Thanks so much.
Michael