Jim Flaherty Urges Lower Mortgage Rates; Insists Banking Sector Needs Freedom from Government Constraints

Jim Flaherty Urges Lower Mortgage Rates; Insists Banking Sector Needs Freedom from Government Constraints

November 13, 2014

(CP) – Daniel Zorg

Former Ontario and Canada finance minister Jim Flaherty today announced that Canada’s banking sector must be able to operate with complete freedom, without any government meddling.  Having left office 48 hours ago, former minister Flaherty, who has since accepted chairs with the boards of all of Canada’s major banks, has been able to gross over $2 million in his first hours out of government.

In a speech with Canadian Club, Flaherty observed, “when I was finance minister during the 2008 recession, I was able to achieve massive bailouts for the major banks.  Moreover, so that banks could keep their taxpayer money, I moved to ensure that Canadians who just didn’t have the serious cash required to own something could never, ever get a mortgage.”  “Now,” he added, “it seems that the government wants to prevent people from letting the private sector determine what is best for it.”  “When I was minister,” Flaherty contended, “I never failed to let Canadians know that only the private sector could ever rescue them.”

Former Minister Flaherty was asked why, after Canadians had bailed out banks and private sector concerns such as auto companies, and after auto companies had not paid back monies as they were not required pay back, and banks had not lent to increase liquidity as they were supposed to do, he felt that banks should now be able to do even more as they wished.

“Well,” Flaherty responded, “it’s simple.”  “I tried to protect the banks as much as possible when I was in office.  Routinely, they said to me, let us lend more money.  ‘No, I said,’ ‘let Canadians lend it to _you_, and then they will pay you back. Now we find ourselves in a situation in which the government of the day is attempting to dictate to us how we should withdraw our money from Canadians.  It’s absurd.’”

 Commenting further on Canada’s low interest rates, Flaherty stated: “banks have to protect themselves from Canadians.  If Canadians want to take out low-interest mortgages offered by banks, then banks have to be able to protect themselves.  That means, no more government meddling.  There has got to be a situation in this country whereby banks, who want it, can get access to taxpayer funds without strings attached.  And me and my board are here to stand up for those banks, and make sure they get their hard-earned dollars from the people they’re going to come from.”

 Flaherty will be addressing business luncheons in Calgary and Vancouver during the rest of the week.

Dan Zorg