This article addresses the impact of substantive policy on federal arrangements in the regulation of Canadian loan and trust companies. It is argued that reliance on market-suppressing policies (flat-rate based deposit insurance and selective bail·outs of depositors in the event of institutional failure) has undermined the value of competitive federalism in this area, and has spawned highly contentious policy initiatives such as Ontario\u27s Equals Approach. To redress the federalism problems in the regulation of loan and trusts, a useful starting point would be the enhancement of market forces in substantive policy. Here, it is argued that the commitment to secrecy regulation by financial institution regulators has impeded this enterprise

Daniels, Ronald J.

English

Kosmopolis

University of Pennsylvania
ScholarlyCommons
Departmental Papers (School of Law) Law School
January 1993
Bad Policy as a Recipe for Bad Federalism in the
Regulation of Canadian Financial Institutions: The
Case of Loan and Trust Companies
Ronald J. Daniels
University of Pennsylvania, president@jhu.edu
Follow this and additional works at: http://repository.upenn.edu/law_series
Part of the Law Commons
Reprinted from Osgoode Hall Law Journal, Volume 31, 1993, pages 543-587.
This paper is posted at ScholarlyCommons. http://repository.upenn.edu/law_series/14
For more information, please contact libraryrepository@pobox.upenn.edu.
Recommended Citation
Daniels, R. J. (1993). Bad Policy as a Recipe for Bad Federalism in the Regulation of Canadian Financial Institutions: The Case of
Loan and Trust Companies. 543-587. Retrieved from http://repository.upenn.edu/law_series/14
Bad Policy as a Recipe for Bad Federalism in the Regulation of Canadian
Financial Institutions: The Case of Loan and Trust Companies
Abstract
This article addresses the impact of substantive policy on federal arrangements in the regulation of Canadian
loan and trust companies. It is argued that reliance on market-suppressing policies (flat-rate based deposit
insurance and selective bail·outs of depositors in the event of institutional failure) has undermined the value of
competitive federalism in this area, and has spawned highly contentious policy initiatives such as Ontario's
Equals Approach. To redress the federalism problems in the regulation of loan and trusts, a useful starting
point would be the enhancement of market forces in substantive policy. Here, it is argued that the
commitment to secrecy regulation by financial institution regulators has impeded this enterprise.
Disciplines
Law
Comments
Reprinted from Osgoode Hall Law Journal, Volume 31, 1993, pages 543-587.
This journal article is available at ScholarlyCommons: http://repository.upenn.edu/law_series/14
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Bad Policy as a Recipe for Bad Federalism in the Regulation of Canadian Financial Institutions: The Case of Loan and Trust Companies

This article addresses the impact of substantive policy on federal arrangements in the regulation of Canadian loan and trust companies. It is argued that reliance on market-suppressing policies (flat-rate based deposit insurance and selective bail-outs of depositors in the event of institutional failure) has undermined the value of competitive federalism in this area, and has spawned highly contentious policy initiatives such as Ontario\u27s Equals Approach. To redress the federalism problems in the regulation of loan and trusts, a useful starting point would be the enhancement of market forces in substantive policy. Here, it is argued that the commitment to secrecy regulation by financial institution regulators has impeded this enterprise

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York University, Osgoode Hall Law School

ScholarlyCommons@Penn

University of PennsylvaniaScholarlyCommonsDepartmental Papers (School of Law) Law SchoolJanuary 1993Bad Policy as a Recipe for Bad Federalism in theRegulation of Canadian Financial Institutions: TheCase of Loan and Trust CompaniesRonald J. DanielsUniversity of Pennsylvania, president@jhu.eduFollow this and additional works at: http://repository.upenn.edu/law_seriesPart of the Law CommonsReprinted from Osgoode Hall Law Journal, Volume 31, 1993, pages 543-587.This paper is posted at ScholarlyCommons. http://repository.upenn.edu/law_series/14For more information, please contact libraryrepository@pobox.upenn.edu.Recommended CitationDaniels, R. J. (1993). Bad Policy as a Recipe for Bad Federalism in the Regulation of Canadian Financial Institutions: The Case ofLoan and Trust Companies. 543-587. Retrieved from http://repository.upenn.edu/law_series/14Bad Policy as a Recipe for Bad Federalism in the Regulation of CanadianFinancial Institutions: The Case of Loan and Trust CompaniesAbstractThis article addresses the impact of substantive policy on federal arrangements in the regulation of Canadianloan and trust companies. It is argued that reliance on market-suppressing policies (flat-rate based depositinsurance and selective bail·outs of depositors in the event of institutional failure) has undermined the value ofcompetitive federalism in this area, and has spawned highly contentious policy initiatives such as Ontario'sEquals Approach. To redress the federalism problems in the regulation of loan and trusts, a useful startingpoint would be the enhancement of market forces in substantive policy. Here, it is argued that thecommitment to secrecy regulation by financial institution regulators has impeded this enterprise.DisciplinesLawCommentsReprinted from Osgoode Hall Law Journal, Volume 31, 1993, pages 543-587.This journal article is available at ScholarlyCommons: http://repository.upenn.edu/law_series/14HeinOnline -- 31 Osgoode Hall L. J. 543 1993HeinOnline -- 31 Osgoode Hall L. J. 544 1993HeinOnline -- 31 Osgoode Hall L. J. 545 1993HeinOnline -- 31 Osgoode Hall L. J. 546 1993HeinOnline -- 31 Osgoode Hall L. J. 547 1993HeinOnline -- 31 Osgoode Hall L. J. 548 1993HeinOnline -- 31 Osgoode Hall L. J. 549 1993HeinOnline -- 31 Osgoode Hall L. J. 550 1993HeinOnline -- 31 Osgoode Hall L. J. 551 1993HeinOnline -- 31 Osgoode Hall L. J. 552 1993HeinOnline -- 31 Osgoode Hall L. J. 553 1993HeinOnline -- 31 Osgoode Hall L. J. 554 1993HeinOnline -- 31 Osgoode Hall L. J. 555 1993HeinOnline -- 31 Osgoode Hall L. J. 556 1993HeinOnline -- 31 Osgoode Hall L. J. 557 1993HeinOnline -- 31 Osgoode Hall L. J. 558 1993HeinOnline -- 31 Osgoode Hall L. J. 559 1993HeinOnline -- 31 Osgoode Hall L. J. 560 1993HeinOnline -- 31 Osgoode Hall L. J. 561 1993HeinOnline -- 31 Osgoode Hall L. J. 562 1993HeinOnline -- 31 Osgoode Hall L. J. 563 1993HeinOnline -- 31 Osgoode Hall L. J. 564 1993HeinOnline -- 31 Osgoode Hall L. J. 565 1993HeinOnline -- 31 Osgoode Hall L. J. 566 1993HeinOnline -- 31 Osgoode Hall L. J. 567 1993HeinOnline -- 31 Osgoode Hall L. J. 568 1993HeinOnline -- 31 Osgoode Hall L. J. 569 1993HeinOnline -- 31 Osgoode Hall L. J. 570 1993HeinOnline -- 31 Osgoode Hall L. J. 571 1993HeinOnline -- 31 Osgoode Hall L. J. 572 1993HeinOnline -- 31 Osgoode Hall L. J. 573 1993HeinOnline -- 31 Osgoode Hall L. J. 574 1993HeinOnline -- 31 Osgoode Hall L. J. 575 1993HeinOnline -- 31 Osgoode Hall L. J. 576 1993HeinOnline -- 31 Osgoode Hall L. J. 577 1993HeinOnline -- 31 Osgoode Hall L. J. 578 1993HeinOnline -- 31 Osgoode Hall L. J. 579 1993HeinOnline -- 31 Osgoode Hall L. J. 580 1993HeinOnline -- 31 Osgoode Hall L. J. 581 1993HeinOnline -- 31 Osgoode Hall L. J. 582 1993HeinOnline -- 31 Osgoode Hall L. J. 583 1993HeinOnline -- 31 Osgoode Hall L. J. 584 1993HeinOnline -- 31 Osgoode Hall L. J. 585 1993HeinOnline -- 31 Osgoode Hall L. J. 586 1993HeinOnline -- 31 Osgoode Hall L. J. 587 1993HeinOnline -- 31 Osgoode Hall L. J. 588 1993

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Bad Policy as a Recipe for Bad Federalism in the Regulation of Canadian Financial Institutions: The Case of Loan and Trust Companies

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