Foreign investment needs a better test: Financial Post Op-Ed
Published in the Financial Post on December 2, 2011
By Philippe Bergevin And Daniel Schwanen
Is Canada open for business? Many people asked that question, here and abroad, after the November 2010 withdrawal by Australia’s BHP Billiton Ltd. of its $39-billion bid to acquire PotashCorp of Saskatchewan. More than a year on, the question still needs an answer, and the federal government needs to act.
After the controversy that surrounded BHP’s withdrawal, Tony Clement, then Minister of Industry, said that the foreign investment decision-making process in Canada, under the Investment Canada Act, should be reviewed to “provide greater clarity to Canadians and greater certainty to international investors.” A…
The Way We Should Pay – Comments on “The Way We Pay: Transforming The Canadian Payments System”
As part of the consultation process on proposed reforms by the Task Force for the Payments System Review, Philippe Bergevin, Policy Analyst at the C.D Howe Institute, and Todd J. Zywicki from the International Center for Law and Economics and George Mason University School of Law, have submitted a document entitled “The Way We Should […]Better Braking for ABS: Reform Proposals for the Asset-Backed Securities Market
Regulators considering reforms to the asset-backed securities (ABS) market should look beyond transparency requirements in their efforts to improve investor comfort in the ABS market, says a report from the C.D. Howe Institute. In “ Better Braking for ABS,” authors David C. Allan and Philippe Bergevin say reforms should require, as a condition for allowing […] Modelling links to financial sector: Financial Post Op-Ed
Published in the Financial Post on August 17, 2011
By Philippe Bergevin, Pierre Duguay and Paul Jenkins
Standard and Poor’s recent rating downgrade of the United States’ long-term sovereign debt sent shivers through financial markets already nervous about the state of government finances. Financial turbulence such as we are currently experiencing can have far-reaching economic implications. But the complex and multifaceted channels through which the economic impacts of these shocks are propagated make their assessment difficult and diagnoses uncertain.
As sovereign-debt problems unfold and volatility grips financial markets, a question: What have we learned from four years of global financial crises about the links…
Strengthening Bank Regulation: OSFI’s Contingent Capital Plan
Bank failures around the world during the recent financial crisis put taxpayers on the hook for trillions of dollars in government backstopping. In future, requiring banks to issue contingent capital, which would convert from debt to equity when banks run into trouble, is one way to help avoid that happening again, and limit taxpayer costs […]Time for Stability in Derivatives Markets – a New Look at Central Counterparty Clearing for Securities Markets
The recent financial crisis has driven many plans for improving the stability and resilience of the global financial system. One concept, managing the risk of default in securities or financial derivatives markets through central counterparties, receives scrutiny in a report released today by the C.D. Howe Institute. In “Time for Stability in Derivatives Markets – […]Give Them Credit: Financial Post Op-Ed
Published in the Financial Post on March 16, 2011
By Philippe Bergevin
Visa and MasterCard, the two biggest credit cards companies operating in Canada, are currently targets of serious allegations. The Commissioner of Competition alleged in a recent referral to the Competition Tribunal that these companies, through rules they impose on merchants, have limited competition in the marketplace, resulting in increased costs to businesses and, ultimately, consumers.
These allegations have been vigorously disputed by the two targeted companies. Further, some of the economic arguments underpinning the legal case are, in my view, flawed and the solutions prescribed by the commissioner are unlikely to foster, and may…