Former Goldman Banker To Head CMHC: “Canada’s Mortgage Monster”

Back in 2011 and 2012 we profiled the one organization that was among the key support pillars not only under Canada’s housing market (and according to many, bubble), but also the entity that by providing tens of billions in cash and loan support to Canada’s banks, served to rescue the financial sector from rather unpleasant consequences: the Canadian mortgage insurer Canada Mortgage & Housing Corporation (CMHC) also known as “Canada’s Mortgage Monster.”
Recall from a 2012 report by the Canadian Center for Policy Alternatives:

 The official story of the 2008 financial crisis goes like this: American and international banks got caught placing bad bets on U.S. mortgages and had to be bailed out. But not in Canada. Through the financial crisis, Canadian banks were touted by the federal government and the banks themselves as being much more stable than other countries’ big banks. Canadian banks, we were assured, needed no such bailout.

However, in contrast to the official story Canada’s banks received $114 billion in cash and loan support between September 2008 and August 2010. They were double-dipping in not only two but three separate support programs, one of them American. They continued receiving this support for a protracted period while at the same time reaping considerable profits and providing raises to their CEOs, who were already among Canada’s highest paid. In fact, several banks drew government support whose value exceeded the bank’s actual value. Canadian banks were in hot water during the crisis and the Canadian government has remained resolutely secretive about the details.

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