(November 30 – 16:45 ET) – U.S.
bank reform will loosen financial
industry merger restrictions, says
Bank of Nova Scotia chairman and
CEO, Peter Godsoe. And that’s a
“silk purse” for the Canadian
financial services industry.
Godsoe made the remarks during a
conference call today.

He told participants he expects
the impact of the new legislation
to be minimal in the short to
medium term. But he expressed hope
the changes south of the border
will spur the federal government
to give broader powers to Canadian
financial institutions.

Godsoe doesn’t expect a lot of
cross-border merger action, but he
hopes it will “ultimately impact
Canadian public policy,” noting
shifts in U.S. policy “always”
affect ours. Prior this new
legislation, Canadian rules were
more progressive. But the new
American rules will put U.S.
financial institutions in a more
favorable position, said Godsoe.

Canadian banks are interested in
getting deeper into the insurance
business, he said, hoping the
government will recognize the
similarities between insurance
and savings products, and that
bring in new legislation to reflect
that.

As for actual merger activity,
Godsoe expects a lot of action
between banks and insurers in the
U.S. “The dealers need liquidity
and they recognize that,” said
Godsoe, suggesting that we’ll soon
see acquisitions by big U.S.
dealers such as Merrill Lynch &
Co. Inc.

-IE Staff