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Non-Tech : Canadian vs. US Banks--Better PE and rising C$ -- Ignore unavailable to you. Want to Upgrade?

To: samson who wrote (175)	1/26/1998 11:50:00 AM
From: Zirdu	Read Replies (1) \| Respond to of 230

I was quite surprised at the RY and BMO merger announcement. I had assumed that there would be such mergers, but that the players would all await the government report on this due in the fall. I suspect that RY and BMO are announcing this merger so soon because they want to protect themselves from takeovers by non-Canadian banks. It is like a preemptive strike, since their stock prices had been deteriorating. I am aware, of course, that foreign buyers of Canadian banks is now not allowed by Canadian law. But then again, either is a merger between two big Canadian banks, as I understand it. In my opinion, the Canadian people would be well served by eliminating all restrictions on bank ownership, and allow full mergers between Canadian banks, buyouts of Canadian banks by foreign banks, and allow foeign banks full access to the Canadian market. I don't think the Canadian banks will have a problem competing in the international market, in Canada itself, and in the US, if they would just be allowed to do so without one hand tied behind their backs. Just my opinion, as a not disinterested observer (I own a lot of TD Bank stock.) RR