Down grading Canada's Banks: SEC CANADA upset with Scotia Bank and Royal Bank

Canada's Banks are unable to invest and protect Canada
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Canada's Banks are failing to protect Canada's newspapers and offer Canadian financing. Canadian Federal Reserve upset also with Scotia Bank and Royal Bank. Bank of Canada objects to Canwest newspaper disclosure monopoly sold to JPMorgan.

http://www.theglobeandmail.com/globe-investor/markets/streetwise/meet-canwests-new-owners/article1564919/

Quote, "The houses of Morgan are willing to buy what Canada’s banks are selling, as CanWest’s newspaper division gets a new lease of life courtesy of two iconic Wall Street banks.

J.P. Morgan and Morgan Stanley stepped up Monday with a new $700-million loan that will help unsecured creditors in CanWest buy the newspaper chain for $1.1-billion, according to court filings on Tuesday. J.P. Morgan is driving this deal, shouldering 70 per cent of the loans.

There is also $250-million of new equity and what’s known as mezzanine debt - loans that can be converted into equity - committed to this takeover.

As the U.S. banks take the stage, Canadian lenders are heading for the exits. Senior lenders, led by Bank of Nova Scotia, have controlled CanWest since the company filed for creditor protection in January. These secured lenders, owed $925-million, are thrilled to be paid 100 cents on the dollar, and are not participating in the recapitalization of the chain.

Somewhere, tycoon J.P. Morgan is smiling."



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SEC Canada examines Scotia Banks reasons for limiting Canwest's credit line from 300 million to 75 million, with 90 million owing with a 11 percent interest rate. Scotia Bank arranged the newspaper sale and non Canadian financing, is treason.