Description: Recent announcement by Bank of Nova Scotia’s chief executive Rick Waugh to purchase the Canadian assets of ING Groep NV for $3.13-billion, raises an interesting dilemma. This will be Scotia’s biggest acquisition. It will increase its customer base by nearly 2 million. However, by acquiring assets of a bank (Amsterdam-based ING) troubled by the financial crisis, is Bank of Nova Scotia making the right decision?

Source: The Globe and Mail

Date: August 30 2012

Link: http://www.theglobeandmail.com/report-on-business/economy/economy-lab/are-canadas-banks-getting-too-big-to-fail/article4509517/

Questions for Discussion:

1. Discuss whether Ottawa should allow this acquisition to go through?
2. Is it OK for big banks to have the backing of their governments?
3. If certain banks are too big to fail, then what checks do we have to insure that bank executives do not pursue their own goals?
4. In you view, should tax payer’s money be used to bail out one of these large Canadian banks if they fail in future?