Are banks trying too hard to be big? Chretien asks
Last Updated: Friday, November 13, 1998 | 11:06 PM ET
CBC News
Chretien said he has no problem with the Royal Bank and Bank of Montreal announcing plans to merge, but he added the final decision on whether the banks will, in fact, join forces rests with his government.
Chretien said being "350 pounds" would not make him a better prime minister.
He pointed out that many of the world's largest banks are based in Japan and some of them are asking the Japanese government for help in trying to stay afloat.
Finance Minister Paul Martin has said he'll wait for a report on banking reform before making any decision on the issue.
Martin has outlined his terms for the merger:
A guarantee there will be no jobs lost. A reduction in consumer charges. An assurance that smaller businesses and towns will benefit from the merger.
The merger plan was announced Friday, and the banks want to complete the deal by the end of October.
Martin says he won't allow the process to be rushed.
The Competition Bureau says it will take months to complete its investigation into the proposed merger between the Royal Bank and Bank of Montreal.
The Royal is Canada's largest bank. The Bank of Montreal is number three on the list. The merger means the combined bank will have more than 80,000 employees. It would have assets of more than $450 billion. This is all being watched carefully by other big Canadian banks.
The Bank of Nova Scotia opened its annual shareholders' meeting in Ottawa. Scotiabank chairperson Peter Godsoe, says he feels no pressure yet to seek out a merger deal.
