Canadian banks: Why should we have to pay high interest rates for money we borrow from the public purse?
Posted: Wednesday, November 12, 2008 ~ 9:25 AM
Ottawa boosts effort to fight spreading credit credit crisis:
Commercial banks have complained loudly that the loan guarantee program designed by Ottawa a few weeks ago was too expensive to be of much use.
Short version: because other countries have rolled over and give their banks free/cheap money, Canadian banks were put at a disadvantage when our government (responsibly, I think) opted to make this assistance less attractive by tacking a high interest rate on any funds so provided. Fortunately, it appears that the Bank of Canada isn't falling for the banks' plea.