The campaign promises represent a far more aggressive approach toward banks than previously taken by Trudeau’s government — a surprising shift given that financial firms weren’t the only companies to rebound quickly from the pandemic, said John Aiken, an analyst at Barclays Plc. The “almost punitive” measures are even more surprising given that the banks committed not to cut workers during the crisis, he said in an interview Tuesday on BNN Bloomberg Television.
The banks were not the only sector to do well during the pandemic, and this is a more targeted, almost rifle shot for the sector, versus some of the others“The banks were not the only sector to do well during the pandemic, and this is a more targeted, almost rifle shot for the sector, versus some of the others,” Aiken said.
Trudeau won a third term Monday night while falling short of regaining a majority government. That means he’ll often have to rely on votes from the left-leaning New Democratic Party, which also campaigned on raising tax rates on corporate income. The S&P/TSX Commercial Banks Index rose 0.4 per cent at 12:50 p.m. in Toronto, trailing the 0.7 per cent gain for the broader S&P/TSX Composite Index. Banks have trailed the broader market since Trudeau announced the tax plans on Aug. 25, falling 4.9 per cent through Monday, compared with a 2.1 per cent decline for the larger index.
Trudeau’s proposed surtax would cut per-share earnings by 1.6 per cent at Canada’s six biggest banks and 0.8 per cent at large life insurers, Mike Rizvanovic, an analyst at Credit Suisse Group AG, said in a note to clients Tuesday. Other headwinds for the financial sector include possible measures to target tax avoidance that could impact trading revenue from the banks’ capital-markets divisions, and increased powers for the Financial Consumer Agency that could allow it to reduce banks’ fees.
They'll just pass it on to the middle class, and miraculously the Big Banks will have even Bigger profits.
Given how many previous election promises JustinTrudeau and liberal_party kept from 2015 and 2019 I imagine bank executives -and their Porsche dealers - won’t be losing any sleep over this.
Banks just need to eliminate more staff from Toronto and Montreal to offset any new tax.
¿Para quien es noticia que gane las elecciones un sinvergüenza corrupto izquierdista como Trudeau? Ganó Putin el asesino ruso, el narco Morales Bolivia, el ladrón asesino Ortega Nicaragua. El verdugo Diaz Canel titere del asesino Castro Cuba, la narco dictadura asesina
You actually believe election promises? This will one of many soon to be forgotten
Ahhhh - poor babies.
And the poor consumers will foot the bill through bank charges. The banks won’t lose a cent.
Nice! Increased bank fee coming soon. Thanks Justine!
I bet he doesn't..... it's not like campaign promises are real promises as we know from his 2 previous campaigns.