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This Is What A Bank Run Looks Like: Home Capital Loses 70% Of Deposits In One Week

May 1st, 2017
Categories: News

Link: http://www.blacklistednews.com/This_Is_What_A_Bank_Run_Looks_Like%3A_Home_Capital_Loses_70%25_Of_Deposits_In_One_Week/58182/0/38/38/Y/M.html

According to HCG's latest press release this morning, the "less than prime" Canadian mortgage lender held HISA deposits of only $391 million as of Monday, May 1; this is down C$130 million from Friday, or a reduction in the total amount by 25%. It is also down 72% from the C$1.4 billion reported one week ago. the company has another C$12.8 billion in Guaranteed Investment Certificate deposits, or GICS. As these 30- and 60-day deposits come due in the coming weeks, depleting HCG's already tapped out liquidity, and forcing even more emergency loans. Without a deposit base, Home Capital can’t fund new mortgages.

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