Cheung said 16 #US #banks were operating to some degree in #Canada, w/a cumulative of nearly $79B in assets — a stat that PM Justin #Trudeau, also cited on Tues.

“American banks are alive & well & prospering in Canada,” Trudeau said.

For decades, Canadian political leaders have crowed about that restrictive #financial #regulatory model. They argue that fending off foreign entrants in the country’s #mortgage market helped the country largely avoid the 2008 collapse south of its border.

In light of #Trump’s criticism, Maggie Cheung, a spox for the Canadian Bankers Assn, was quick to point out that foreign #banks were an integral part of the banking landscape.

Many international banks limit themselves to areas that don’t involve lending, such as offering investment advice to wealthy Canadians or local companies.

So #Trump is incorrect in asserting that American #banks cannot do any business in #Canada, but it is true that they are limited in their activities.

While there are >4k banks in the #UnitedStates, Canada has just a few dozen, & >¾ of deposits are held by the Big Six.

Given how dominant #Canada’s homegrown #banks are, any international bank that tries to compete faces “an additional regulatory burden for what would begin as a small prize,” said James R. Thompson, assoc prof of #finance at the U of Waterloo.

The upshot is that #US banks have minimal operations in Canada. The largest American lender, JPMorgan Chase, says it has roughly 600 employees in Canada, out of >300k worldwide.

Additionally, #US #banks are restricted in what they can do in #Canada.

Foreign banks, including American ones, must either work with a Canadian middleman, establish a Canadian subsidiary or receive special government permission to do business. Unless they agree to follow Canada’s stringent banking rules that include holding a hefty sum of cash-like assets in reserve at all times, they cannot operate retail branches that take deposits under around $100k.

#Canada’s #banking sector is dominated by the “Big Six,” the 6 institutions including the Royal Bank of Canada & TD Bank. They are permitted to take deposits, extend mortgages & advise corporate clients—all the core activities for #banks. And Canadian customers disproportionately still prefer to do their banking in person, as opposed to online, meaning it would require a major physical presence for any entrant to attempt to enter the market.

…#Trump mentioned the #Canada banking issue early last month as part of a broader criticism against what he views as the unequal economic balance between the #UnitedStates & its northern neighbor. …Trump posted Canada “doesn’t even allow U.S. Banks to open or do business.”

Here is the actual state of play for #US #banks in Canada:

“Nobody is helped by shutting down the agency, except #BigBanks, #ConMen & rip-off artists, oh & #billionaires like Mr. Musk, who is trying to start a new ‘#XMoney’ feature on his social media platform,” Sen #ElizabethWarren said at the hearing. “By eliminating the #CFPB, he would take the financial cop off the beat.”

But on Thurs, the #Trump #CFPB dropped several complaints against financial institutions, including the ones for #CapitalOne & #RocketHomes.

“We welcome the CFPB’s decision to dismiss this action, which we strongly disputed,” a spokesperson for Capital One said in an emailed statement.

In a statement, Rocket Homes said: “This case was a misrepresentation of the facts, as we have said from the day the suit was filed.”

A month earlier, the #CFPB filed a lawsuit against #RocketHomes Real Estate, alleging that the company incentivized real estate brokers & agents to steer home buyers to #RocketMortgage.

“At a time when #homeownership feels out of reach for so many, companies should not illegally block competition in ways that drive up the cost of #housing,” said then-CFPB Dir Rohit Chopra in announcing the action.

#Trump #Musk #law #economy #regulation #banks #credit #loans #kleptocracy
https://www.consumerfinance.gov/about-us/newsroom/cfpb-files-lawsuit-to-stop-illegal-kickback-scheme-to-steer-borrowers-to-rocket-mortgage/

In one of its final actions under the #Biden admin, for example, the #CFPB filed a lawsuit on Jan 14 against #CapitalOne, alleging the financial institution misrepresented its “360 Savings” accounts, effectively “cheating consumers out of more than $2B in interest payments.”

#Trump #Musk #DOGE #law #economy #regulation #banks #credit #loans #mortgages #foreclosures #debt #housing #markets #USpol #kleptocracy #plutocracy
https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-capital-one-for-cheating-consumers-out-of-more-than-2-billion-in-interest-payments-on-savings-accounts/

“Since its founding, the #CFPB has returned over $21B directly to #consumers. It’s helped #ServiceMembers who have been ripped off by unscrupulous lenders. It’s helped borrowers whose #StudentLoan servicers treated them unfairly; it’s helped families that have been scammed; & it’s helped thousands of Americans that have been charged extortionate fees by big #banks & other financial services providers,” Sen #ElizabethWarren said during a hearing this week.

In the 14 yrs the #CFPB has existed, it has challenged #banks on outrageous overdraft fees, taken on payday #lenders, & issued rules to rein in rogue #debt collectors. It created a complaint database to help #consumers seeking to resolve disputes with their #creditors & pursued companies & industries w/ #deceptive marketing & billing practices.

The agency was also laser-focused on making companies communicate w/consumers in plain language.

#Trump #Musk #DOGE #law #regulation #USpol

When harmed, the average #consumer often doesn’t have the #money to defend themself. Hiring an attorney is expensive. Rooting out deceptive predatory practices should be left to the #government, not a family trying to make ends meet.

Remember the Great #Recession?

During his first term, #Trump was hell-bent on eviscerating the authority of an agency that #Congress authorized to protect #consumers after the 2008 financial crisis. His choice to lead the agency in 2017 signaled his disdain: Mick Mulvaney, a fmr congressman who voted to abolish the #CFPB.

…But consumers needed then — & need now — a powerful advocate.