Government listens when bank CEOs speak, and Finance Minister Jim Flaherty liked what he heard from Scotiabank’s Rick Waugh on Tuesday (full story).
“…I’m glad that some of the banks, at least one of the bank executives yesterday, indicated that he agreed that actually the banks should exercise prudence and not rely on government to do it for them,” Flaherty said on Wednesday.
“I’ve tightened up the mortgage insurance market three times…I really don’t want to do it again.”
With statements like that, the Department of Finance seems poised to take no imminent action on mortgage rules. It will probably digest the spring housing numbers and go from there.
Source: Financial Post
Rob McLister, CMT