Eric Sprott: About to launch a New kind of Bank

Eric Sprott, by Silver Circle Movie / *

“In Canada, where the banking industry poses relatively little systemic risk, a different solution is now in play. Partnering with the asset management company founded by Toronto billionaire Eric Sprott, Continental Currency Exchange—the largest independently owned retailer of foreign exchange in Canada—is out to create a zero-risk option.”

The “Continental Bank of Canada would remain an unlevered and overcapitalized financial institution, something that isn’t offered by today’s financial services market.”

“Canada’s banks are watching with interest.”  

Thomas Watson

An ancient idea for a brand new bank

By Thomas Watson

November 03, 2011

Banks were around long before the invention of coinage, not to mention paper money. The industry originated in ancient Mesopotamia, where palaces, temples and eventually private operations provided for the safe-keeping of grain and other commodities. Receipts for these deposits could be transferred to third parties. Laws regulating these early banks were included in the Hammurabi code, which did a better job than modern financial regulators at keeping moral hazard at bay. After all, the concept of an “eye for an eye” went a long way toward making early capitalists think twice about taking risks.

Today, as global markets nervously watch to see how much it will cost to save European banks from their willingness to make risky loans, critics around the world are calling for Hammurabi-style reforms to make sure financial institutions, not taxpayers, pay for future bad bets.

Complete article HERE.

© 1999-2011 Rogers Communications. All rights reserved.


* Image reference:
Photo of Eric Sprott, head of Continental Currency Exchange
and Sprott Assett Management, by Silver Circle Movie
This image has been modified.
Original source:
Certains droits réservés (licence Creative Commons)

*** More articles and videos from CanadaNewsLibre HERE !

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of CanadaNewsLibre. The contents of this article are of sole responsibility of the author(s). CanadaNewsLibre will not be responsible or liable for any inaccurate or incorrect statements.

The CNL grants permission to cross-post original CanadaNewsLibre articles and videos on community internet sites as long as the text & title are not modified. The source and the author’s copyright must be displayed.

http://canadanewslibre contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.

ↄ⃝ Copyleft CanadaNewsLibre 2011

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s