Provencher Member of Parliament Ted Falk is asking the Liberal government to clarify what it means by its mention of a 'bail-in regime' in the federal budget.
There is fear the Liberal government is proposing that if a Canadian bank would start to fail that it would be allowed to seize personal bank accounts in order to pay its bills. But, Falk says it is the 
"The Liberal government needs to come out and be clear about that," asks Falk. "And reassure Canadians that it's not their deposits that are at risk here, it's actually the debt that the bank would have that would be converted into common shares."
If the Conservatives are interpreting this correctly, Falk says the reason this is being done by the Liberals is that it gives government the ability to provide stability to financial markets in the event that there would again be a global recession.
"The government is making provisions that they have the ability to look at the long term debt of a bank and what they deem as eligible long term to convert into common shares that would actually strengthen the balance sheet of Canadian banks," he says.
Falk says as Canadians we are confident that when we deposit money into a bank or Credit Union, it is safe. But he says this 'bail-in regime' is raising some eyebrows and causing people to falsely interpret what it actually means.
"We need that clarification from the Liberal finance department, from Minister Morneau that in fact customer deposits are safe in Canadian banks," he says.
There is fear amongst some Canadians that this line in the budget could lead to what happened in Greece a few years ago when bankers there made risky loans leading to a financial disaster.
"We're not anywhere remotely close to the financial situation as a country that Greece was in, nor what their lending institutions were in," assures Falk.
Sat, Apr 20, 8:00 AM
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