(Toronto) Bank of Montreal executives were asked at the bank’s annual meeting of shareholders on Wednesday to clarify whether they would “consider a legal challenge” after the federal government ordered financial institutions in February to freeze the accounts of people linked to the anti-COVID trucking convoy that occupied downtown Ottawa for weeks.
Posted yesterday at 4:00 p.m.
More than 200 bank accounts totaling nearly 8 million in assets were affected after the Emergency Measures Act was invoked for the first time in Canadian history on February 14, before being lifted on February 23.
The shareholder who asked the question expressed concern about the safety of customers’ money, adding that “depositor confidence is essential to the operation of the bank”.
Bank of Montreal Chairman George Cope did not answer the question directly, but said the bank had a “positive dialogue” with the federal government and was following the agency’s recommendations. Canadian banking regulations.
The Bank of Montreal has also been quizzed, along with some of its Big Five banks across the country, on its climate strategy as it strives to steer its business and customers towards carbon neutrality by 2050.
A proposal regarding housing was raised during the meeting. This, which was withdrawn, called for the Bank of Montreal, along with the other major banks, to create a tool to “assess and mitigate” the potential negative effects of the “financialization of housing” in Canada.
The proposal was withdrawn after Mr. Cope highlighted the Bank of Montreal’s actions on housing, in particular its $12 billion commitment to fund affordable and accessible housing in Canada over a 10-year period. Chief executive Darryl White referred to the promise, first announced in August, during his prepared remarks to shareholders.
Mr. White also discussed the company’s growth strategy in the United States, including its agreement to acquire Bank of the West, California, which is still awaiting regulatory approval.
He further expects the federal government to “put in place a thoughtful and progressive framework” on open banking.
However, the 1.5% tax on bank profits over $100 million and the one-time 15% charge on income over $1 billion, measures announced in last week’s federal budget, have not been mentioned at the meeting.
The Bank of Montreal event took place in person and could also be viewed live via webcast. Royal Bank changed its meeting to hold it virtually only last week, due to the impact of COVID-19 on several key staff members. CIBC also held its meeting virtually. Scotiabank CEO Brian Porter was absent from its annual meeting last Tuesday because he had contracted COVID-19.