Ottawa closing the tap on bank support measures - The Globe and Mail

The Globe and Mail is reporting this morning that the federal government is ending the Extraordinary Finance Framework, introduced last year. Entirely off the books (and thus very much in line with the Conservative avoidance of democratic accountability), this measure pumped $135 billion or about 10% of our GDP for the year into banks that we were told were the envy of the world.

As described by the Globe

Mr. Flaherty's budget on March 4 will come one week after banks begin reporting first-quarter results. The sector is not expected to show much profit growth, but its earnings will nevertheless likely amount to billions of dollars.

The government's economic action plan – the blueprint it created to steer the financial system through the crisis – included seven measures that collectively could provide up to $200-billion in support.

In early December, when all of the measures were still in place, they had provided $135-billion worth of support, according to the government.

About $40-billion was through the Bank of Canada. The central bank is now reducing or phasing out its extraordinary liquidity facilities.

This represents about a tenth of our GDP for last year, spent on one program, entirely off the books. And our opposition, of course, was as usual asleep at the switch.