Emergency legislation bolsters Ottawa’s ability to buy troubled assets of companies in order to stabilize economy

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Emergency legislation bolsters Ottawa’s ability to buy troubled assets of companies in order to stabilize economy GlobePolitics

“This could include establishing an entity to purchase assets, if warranted,” Maéva Proteau, press secretary for the Finance Minister, said in a statement.

Until September 30, the Finance Minister has also been granted authority under the new legislation to make loans to any company, provide a line of credit or loan insurance, or guarantee its debt without seeking authorization from cabinet. After September 30, the minister would have to seek cabinet authorization.

Trevin Stratton, chief economist at the Canadian Chamber of Commerce, said it makes sense for Ottawa to give itself this tool as a contingency. The most famous bailout employed by Ottawa during the 2008-09 financial crisis was support extended to two automakers. In 2009, the federal and Ontario governments injected $13.7-billion into Canada’s auto sector by contributing to the U.S.-led bailouts of Chrysler Group LLC and General Motors Co.Ottawa and Queen’s Park received shares in return for their support and later sold them off.

 

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globepolitics Socialism for the rich! Where's Bernie!!

globepolitics So all of Bill_Morneau buddies will state they are in trouble. The buys their assets and then sells it back at a lower price so Billy’s friend milk Canadians out of the millions Billy spent buying the company So Billy helps his Bay St buddies

globepolitics Oh great,.. just watch SNC & Bombardier catch a life line! Quebec is going to be the winner in this game, Libs need Blanchet backing them up in HOC numbers!

globepolitics

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