Dangerous Opportunities: The Future of Financial Institutions, Housing Policy, and Governance
The 2017 Home Capital saga represents the shortcomings of a financial system challenged by distinct, siloed regulatory frameworks that fail to communicate with each other. Home Capital is a publicly traded company that acts as a lender through the Home Trust Company, most often providing mortgages to clients rejected by traditional banks. Home Capital’s 2017 announcement that it required $2 billion to sustain a $600 million loss shook customer confidence, and fueled by allegations of corruption, they suffered a rapid decline in stock price.
The Home Capital crisis is the most recent pre-pandemic example of systemic risk in the financial sector in Canada and highlights the invaluable opportunity that we have in avoiding past mistakes in the nearing post-pandemic economic reality.
Dangerous Opportunities sheds light, using the 2017 Home Capital saga as a starting point, on the compartmentalization of regulators and its greater ramifications on board independence and corporate governance, taxation in the competitive house context, and non-bank financial institutions’ success in various jurisdictions. A hybrid of law and business, Dangerous Opportunities is a must read for those interested in the underbelly of financial institutions, and is an inspired read in the aftermath of the recent housing crisis which saw many desiring-homeowners seeking dangerous opportunities outside of the traditional banking system.
- Imprint: Rotman-UTP Publishing
- World Rights
- Page Count: 208 pages
- Dimensions: 6.0in x 1.0in x 9.0in
Author InformationStephanie Ben-Ishai is a Distinguished Research Professor and Full Professor at Osgoode Hall Law School, York University. She is also the Academic Director and Founder of the LLM in Bankruptcy and Insolvency Law, Co-Academic Director of the LLM in Banking Law, and the Academic Director of the Osgoode Small Business Clinic. She is the co-author of numerous law textbooks.
Table of contents
1 Governance Challenges in Times of Crisis
2 Hoopp and Home Capital: Pension Funds as Good Governors and Crisis Managers
3 Securities Regulators and Investor Education
Gail E. Henderson
4 Home Capital and Cross-Border Lessons in Mortgage Regulation
5 Tax Reform: A Missing Piece in Canada’s National Housing Policy
Conclusion. Dangerous Opportunities: Lessons Learned for the Pandemic Recovery Efforts
Subjects and Courses