DCN ARCHIVES

October 3, 2008

Commercial banks stand to profit from Black Monday, economist says

With Congress’ passage of the bailout package today, the turmoil on the stock markets has subsided just a little. The question now is, are there any winners in this situation? The answer, according to CanaData chief economist Alex Carrick, is “yes, indeed.”

According to Carrick, the commercial banking industry is poised to benefit from the “flight to security,” as wary investors put cash into commercial savings accounts and GICs.

“The commercial banks are reaping a bonanza in cash deposits,” says Carrick. “In fact, there may be a double benefit to the bank from the stock-market activity, since any purchase transactions will also involve a great deal of borrowing on the part of credit-worthy buyers.”

Read Mr. Carrick’s compete analysis here: "Huge Potential for Commercial Banks from Black Monday."

Print | Email | Comment

MOST POPULAR STORIES
TODAY’S TOP CONSTRUCTION PROJECTS

These projects have been selected from 313 projects with a total value of $3,164,198,755 that Reed Construction Data Building Reports reported on yesterday.

RAILWAY LINK

$400,000,000 Windsor ON Prebid

RETAIL DEVELOPMENT

$300,000,000 Toronto ON Negotiated

RESIDENTIAL, COMMERCIAL DEVELOPMENT

$250,000,000 Etobicoke ON Negotiated

Daily Top 10

CURRENT STORIES
ALEX’S ECONOMICS BLOG

Reed Construction Data Chief Economist Alex Carrick discusses current developments in the North American economic environment with emphasis on the construction industry.

TODAY’S TOP JOBS

More jobs 

myJobsite.ca

Your gateway to
the top careers
in construction
and design