Home Capital Group – Zombie – Not Dead – Not Alive

May 25th, 2017 · 3 Comments · Mortgages

Earlier today I watched a special on BNN with Brian Madden and he said something intelligent. I like that, and I wish more people were being honest and straightforward instead of pumping the stock up.  A lot of people are pinning their hopes on Oaken Financial and Home Bank to be able to increase deposits with 3+% GIC’s and they are CDIC insured for principal and interest. So Brian says “Just because you’re insured doesn’t mean you should invest there, after all you don’t leave your house with the stove and oven on just because you’re insured” I have no idea what’s involved in a CDIC claim, but it’s going to be a pain in the ass. It’s insurance, and while it’s nice to have I keep my eyes open while driving.

Home Capital Under Fire For A Long Time

For many of us, it may seem like Home Capital Group just happened yesterday and is all over the news but really a lot of people have been watching them for a long time. Anyhow I came across another power point about them dating back to analysis in 2015.

HCG Chronology v2.pptx

These are very well thought out serious long standing issues that have never been resolved, until not with the HOOPP loan and the disappearing reserves. No amount of 3% GIC’s is going to fix that. If Home had spent half the time addressing the concerns and substantive issues rather than avoiding questions and scoffing at the short sellers the company might not be awaiting a bailout or a bankruptcy filing or OFSI takeover right now.

I’m sorry your dog has cancer Mr Soloway, but it’s time to put it out of it’s misery. When the tumor was small you ignored it and now that the tumor is huge and full of rot, it’s going to spray everyone in the vicinity.

Bye Zombie

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3 Comments so far ↓

  • Joe Blow

    He is not being honest. His logic would apply to ANY GIC AT ANY BANK. A foolish segment.

    And to compare the BofC and CDIC stepping in to take over a failing bank and literally make your funds, up to the $100k, limit available within 3 days to a house burning down an trying to collect the insurance is simple exercise in idiocy………

    • Rachelle

      Well none of the other banks are in the same position as Home Capital Group. In any case, no one’s preventing you from putting your money there and doing a bunch of paperwork when they finish using up their HOOPP loan in a month or so.

      The whole idea of a GIC is that it’s safe and secure and doesn’t cause problems.

  • Joe Blow

    HCG also was NOT in that position until the begining of April. Fellow banks yanked the rug out from under them.

    But the real issue is, the whole banking sector is CONFIDENCE GAME!

    In 2008/2009, while Canada escaped alot of the US chaos, MANY CANADIAN BANKS WERE ISSUING NOTES AT 10% TO SHORE UP THEIR CAPITAL E.G. BMO. They were lucky to get through it. But they did. HCG? Much more uncertainty.

    My point being though, that the main article above is a fluff piece. They focus on only HCG. To the extent there is any truth to it, and I dont think there is (fire insurance vs CDI….plleeeezzz), it applies to ALL FINANCIAL INSTUTIONS……….If you carry that logic far enough, you’ll be stuffing your mattresses with fiat currency or buying physical precious metals