Is Canada's 'Housing Bubble' about to burst nationwide? (ZeroHedge).
This Is What A Bank Run Looks Like: Home Capital Loses 70% Of Deposits In One Week.
According to HCG's latest press release this morning, the "less than prime" Canadian mortgage lender held HISA deposits of only $391 million as of Monday, May 1; this is down C$130 million from Friday, or a reduction in the total amount by 25%.
There is some good news: a terminal bank run at the mortgage lender has already been largely factored in, and is largely covered courtesy of the recently announced $2 billion emergency loan from the Ontario Pension Plan - putting up to 321,000 retirees on the hook - which carries a pre-bankruptcy interest rate of as much as 20%. To this end, HCG announced today that its subsidiary, Home Trust, expects to receive the initial draw today of $1 billion from its $2 billion credit line.
“The probability has gone from infinitesimal to possible - unlikely, but possible. If depositors or bondholders start to lose faith in their banks, well then that becomes systemic.”