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Says we have been on banks in trouble here in in Europe.
Not all countries are loaded with toxic assets the banks up in Canada or in anywhere near the trouble that our banks are in here why not.
Well earlier I put that question a Canadian Prime Minister Stephen Harper.
Your -- couldn't get into a lot of the same problems in -- -- -- how were they able avoid all those toxic cancer well I think there are.
David there are two things first vote we do have a stronger system regulation.
We normally have maintained stronger regulations.
We have a more activist regulator who goes out and meets with the major players in the financial sector.
I think the consequence of that is we've also developed a more prudential business culture in our banking sector.
As so in fact if you actually look most of our banks didn't actually tests the limits of their ratios.
The upshot is they're far less leveraged than their American counteract close to that thirty to one mark I think -- around the sectors around eighteen to one.
Thirty in the US over forty in Europe by understand.
We have you know the government we haven't had in this financial crisis we've had who had to put any government money in our makes him -- do any bail out.
What we have to keep doing though and this is the unfortunate spin off about other actions is when.
Other governments get involved in the banking sector we've had increased government guarantees otherwise our bags are no longer competitive right and that's the big risk for us.
As other sectors contemplate various forms of nationalization.
We have no intention of nationalizing our banks.
We've got to make sure they can stay competitive with banks that have government guarantees that's that's the danger is that they spillover effect.
If indeed one of our big banks.
Does become -- it does get taken over by the government is nationalized.
How might that spill over to Canada well it's something we'll watch very carefully.
Will will will have to do whatever steps are necessary to ensure banks are competitive.
But look I'm not saying this to critique what the United States is doing the fact of the matter is the President Obama has a massive mess on -- hands.
And it is essential that the United States somehow stabilize its financial sector because if we don't stabilize the financial sector.
In the US and around the globe.
We will not turn this recession around that is it it just has to be done some would would nationalization help or hurt that process of stabilization well hi I don't purport to be an expert on this there're.
-- -- You know some things governments could do that would help other things that would hurt and look there's a huge risk that things that.
The government of the United States will do in the short run whether it's on banking or housing or fiscal stimulus.
There's a huge risks that these things that will help in the short term may hurt in the long term.
But if I can be blunt -- now the short term is what we're worried about we have simply got to stabilize the global economy well in the short term the president of the United States has said he's -- he's would rather not nationalize if if not necessary can you think of anything that might make it necessary to nationalize banks here.
Well as they say it's it's clearly going to be necessary to have additional government action in the banking sector to try and stabilize it whether it's nationalization -- -- I don't know all I can tell using Canada.
We have no intention of having a nationalize or government run banking -- can you live a lot of people.
Point to Sweden is as perhaps the only example of the nationalization that may have worked.
Do you think that even in that instance there may be drawbacks that is I look around at Mexico and other countries in Latin America when they nationalize the banks since.
There on the precipice of disaster that pushes them over the edge you've.
Well look there're there are always risks in in nationalization.
There's a reason why.
You know in Canada which.
If you look back some twenty years had a pretty socialized economy why we've moved away from government ownership.
It's you know it generally doesn't produce in the long run very good outcomes.
What does -- say the fact of the matter is.
Something is going to have to be done.
To stabilize the sector and get lending going again what we thank you very much for coming to scoreboard and -- prime minister thanks very gave a brief.
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