ADMS 1010 Lecture Notes - Mutualization, Life Insurance, Paul Cantor
24 Mar 2013
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In order to gain sufficient fund, confed. start invest money into real estate: canadian securities dealer and brokerage houses were opened up to anyone. Issues: office of the superintendent of financial institutions (osfi) Appointed by michael mackenzie to keep an eye to all the financial sectors: the regulators found that confed. Trust continued to lend money to itself and provide loan with borrower in which the law states that no one company should account for more than 1% of loans. But no one listen to the problem: recession occurred. Unemployment , mortgage holders miss payments, competition for investment dollar . : with confed. directors unaware of the issue, they set up confed. Services ltd (ctsl) and taking advantage of the trust account of the company"s operations in michigan. Under michigan rules, each foreign company must keep sufficient assets in the michigan- based trust account. If a company went bankrupt, michigan wanted protection for all american.
