Proposed Mergers
In 1998, the Bank of Montreal proposed a merger with Royal Bank around the same time that CIBC proposed to combine with the Toronto-Dominion Bank. The banks argued that these mergers would enable them to compete globally with other financial institutions.
This would have left Canada with only three major national banks. Thus, the mergers were reviewed by the Competition Bureau of Canada. The Competition Bureau declared that negative effects (such as higher user fees and local branch closures) from the mergers would far outweigh the benefits of allowing the mergers. Ultimately, it was then Finance Minister Paul Martin who rejected both proposed mergers. The issue since has not been revisited by succeeding Finance Ministers.
Read more about this topic: Big Five (banks)
Famous quotes containing the word proposed:
“We have no one to blame for the Kennedys but ourselves. We took the Kennedys to heart of our own accord. And it is my opinion that we did it not because we respected them or thought what they proposed was good, but because they were pretty. We, the electorate, were smitten by this handsome, vivacious family.... We wanted to hug their golden tousled heads to our dumpy breasts.”
—P.J. (Patrick Jake)