The financial crisis of 2007-2008 triggered a worldwide recession. The American and European banking systems experienced massive losses, takeovers, and taxpayer-funded bailouts.  Lehman Brothers, Northern Rock, European debt crisis, … and the after-effects are still being felt. Canada’s banking system did have some shaky moments, as a recently published analysis of its asset-backed commercial paper (ABCP) predicament showed. On the whole, however, Canada’s banks withstood the financial crisis relatively well and the financial system maintained its liquidity, solvency, and profitability.   The history of the divergence in the Canadian and American banking systems is recounted in a new book. From […]