Government must put the brakes on Bay St. and prevent windfall pandemic payouts

November 3, 2021 at 8:10 am  Labour

OTTAWA – An upcoming announcement from Canada’s banking regulator has the financial sector salivating at the prospect of gargantuan payouts. Analysts predict that the Office of the Superintendent of Financial Institutions (OSFI) will announce this week that they will relax a ban on dividends and share buybacks.

“The banks now want to reward themselves and investors with windfall gains that come as a result of government support during the pandemic. Excessive payouts to investors, while support for people is being cut off by the government, is just not right,” said Bea Bruske, President of the Canadian Labour Congress. “Rather than allowing this pandemic to further entrench existing inequalities and allow the gap between the rich and poor to widen, the federal government should instruct OSFI to maintain restrictions on shareholder payouts, and immediately impose a windfall gains tax on banks and insurance companies to prevent surplus capital from being distributed as jackpot winnings to shareholders and company executives.”

When COVID-19 struck, the federal government’s first order of business was to pump money and credit into the financial sector and ease reporting requirements to reduce “the operational burden” on financial institutions. In the early days of the pandemic, the federal government and the Bank of Canada provided three-quarters of a trillion dollars in liquidity and financial support. In return, the financial regulator instructed banks and insurers to suspend share buybacks and not to increase dividend payments.

“The banks now want to reward themselves and investors with huge increases in dividends and share buybacks. The government must make sure that the big businesses that made record profits in the pandemic now pay their fair share,” said Bruske. “The government should go further, frankly, and introduce a wealth tax to begin taxing the concentrated riches of Canada’s wealthiest families to make sure everyone is contributing fairly to a more equitable society.”

-30-

To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

View Link to Original Source

No conversations yet

Activity Stream

Sat, Nov 27, 2021 at 9:00 am - Doug Smith posted on their blog: Clapperton Hill Traverse – Kamloops Trails
Wed, Nov 24, 2021 at 8:50 am - Doug Smith posted on their blog: Trails on the East Side of Lac le Jeune
Tue, Nov 23, 2021 at 5:00 pm - David Suzuki posted on their blog: Where do we go from COP26?
Sun, Nov 21, 2021 at 9:00 am - Doug Smith posted on their blog: White Lake Lookout – Kamloops Trails
Thu, Nov 18, 2021 at 12:00 pm - David Suzuki posted on their blog: It will take more than electric cars to drive down emissions
Thu, Nov 18, 2021 at 9:01 am - Doug Smith posted on their blog: Views from Above Kamloops – Kamloops Trails
Mon, Nov 15, 2021 at 9:01 am - Doug Smith posted on their blog: Moul Falls Fall Hike – Kamloops Trails
Fri, Nov 12, 2021 at 9:00 am - Doug Smith posted on their blog: Tranquille River in the Fall
Thu, Nov 11, 2021 at 11:13 am - Arjun Singh posted on their blog: Remembrance Day 2021…
Tue, Nov 9, 2021 at 6:51 pm - David Suzuki posted on their blog: Governments must end support for coal, oil and gas
Full Stream