Dangerous Opportunities: The Future of Financial Institutions, Housing Policy, and Governance

The 2017 Home Capital saga highlights the shortcomings of a financial system challenged by siloed regulatory frameworks that fail to communicate with each other. It emphasizes the importance of avoiding past mistakes in the post-pandemic economic reality and provides insights into the compartmentalization of regulators, board independence, corporate governance, taxation, and the success of non-bank financial institutions.

\n Format: Hardback
\n Length: 208 pages
\n Publication date: 20 August 2021
\n Publisher: University of Toronto Press
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The 2017 Home Capital saga serves as a stark illustration of the limitations of a financial system grappling with disparate and disconnected regulatory frameworks that struggle to communicate effectively. Home Capital operates as a publicly traded company, functioning as a lender through the Home Trust Company. Primarily, it offers mortgages to clients who have been rejected by traditional banks. However, the company's 2017 announcement that it required $2 billion to sustain a $600-million loss severely shook customer confidence, leading to a rapid decline in its stock price. Fueled by allegations of corruption, Home Capital faced a precipitous downfall. This crisis represents the most recent instance of systemic risk in the financial sector in Canada, highlighting the critical need to avoid repeating past mistakes as we navigate the impending post-pandemic economic landscape.

Dangerous Opportunities, a book that delves into the complexities of the financial sector, takes a starting point from the 2017 Home Capital saga. Through its exploration, the book sheds light on the compartmentalization of regulators and its far-reaching consequences on board independence and corporate governance, taxation in the competitive housing sector, and the success of non-bank financial institutions across different jurisdictions. This work blends law and business, making it a must-read for those interested in delving into the inner workings of financial institutions. Moreover, it provides valuable insights and inspiration in the aftermath of the recent housing crisis, during which many aspiring homeowners sought alternative opportunities outside of the traditional banking system.

\n Weight: 492g\n
Dimension: 221 x 359 x 23 (mm)\n
ISBN-13: 9781487506087\n \n