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On Friday at 5:30 pm, I received a voicemail from someone at Oaken. He said he noticed that I had a cashable GIC, and why didn't I cash it out, and reinvest in one of their non-cashable 18 month GICs for a tenth of a percent more interest?
These guys are a no frills type of bank. I have never received, or ever expected to receive, investing advice from them, especially by unsolicited phone call. To tell you the truth, it worries me. It seems to qualify as a red flag to me. These guys were very much in the news a few years ago, when one of the principals got into regulatory difficulty, and there was a run on deposits, which was only halted when Warren Buffet stepped in and threw some money at them for a big stake in the company, and extended them a line of credit. He bailed out a not long after. Technically, I am covered by CDIC, but in this new normal, I don't really have faith in much anymore. Only a small fraction of my GICs are cashable. Does anyone have any insight on this?
 

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It could be they are trying to match their loans with their liabilities better as part of good risk management, or they are going to have a bad quarter and are looking to minimize the impact of another potential run on the bank. This is consistent with their theme of offering mostly competitive rates on their GICs, but not on their HISA which has been lowered twice in recent months.

FWIW, I don't have a concern if within the CDIC limit. I have Home Trust GICs in my RRSP.
 

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On Friday at 5:30 pm, I received a voicemail from someone at Oaken. He said he noticed that I had a cashable GIC, and why didn't I cash it out, and reinvest in one of their non-cashable 18 month GICs for a tenth of a percent more interest?
These guys are a no frills type of bank. I have never received, or ever expected to receive, investing advice from them, especially by unsolicited phone call. To tell you the truth, it worries me. It seems to qualify as a red flag to me. These guys were very much in the news a few years ago, when one of the principals got into regulatory difficulty, and there was a run on deposits, which was only halted when Warren Buffet stepped in and threw some money at them for a big stake in the company, and extended them a line of credit. He bailed out a not long after. Technically, I am covered by CDIC, but in this new normal, I don't really have faith in much anymore. Only a small fraction of my GICs are cashable. Does anyone have any insight on this?
... surprised to see this (ie. news to me) since they had a pretty open presence at the TO MoneyShow last year ... do you have a link to the news on this? Or maybe I can easily google this ...
 

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... surprised to see this (ie. news to me) since they had a pretty open presence at the TO MoneyShow last year ... do you have a link to the news on this? Or maybe I can easily google this ...

(Oaken is an arm of Home Capital Group.)
 

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... ok, I see now.
Umm. The story was from 2017 and relates to shenanigans alleged in 2015. This isn't current news by any means.


The OSC alleges Home Capital “misled” shareholders because it knew there was fraud in its broker channel months before a public announcement in July of 2015.
 

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Not current news but HCG, to my knowledge, still has not regained investment grade status in its credit rating.

It's Home Trust subsidiary is BB, 2 notches below investment grade I believe. Home Trust owns both Home Bank and Oaken Financial. Not an issue for CDIC insured deposits if one stays within limits.

 
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