The Canadian Centre for Policy Alternatives (CCPA) issued a report this week detailing $114 billion the government gave banks during the economic downturn through indirect support.
The Canadian Mortgage and Housing Corporation provided $69 billion to take mortgages over for the banks. The government says the program that took on the mortgages has generated $1.2 billion in net revenues.
Canadian banks also used a program set up by the U.S. Federal Reserve, with Scotiabank taking the most from the program at $12 billion. The Bank of Canada gave banks some $41 billion in the form of liquidity support, according to the report.
“At some point during the crisis, three of Canada’s banks—CIBC, BMO, and Scotiabank—were completely under water, with government support exceeding the market value of the company,” says CCPA senior economist David Macdonald.