1. Because the Toronto-Dominion Bank was neither a manufacturer nor

1. Because the Toronto-Dominion Bank was neither a manufacturer nor a distributor of ABCP products, did the bank have a moral responsibility to assist in the restructuring of the commercial paper market?
2. If you were Edmund Clark, how would you explain to the board of directors that you were having the bank exit a market in which your competitors were making a lot of money?
3. The banks in Canada are highly regulated by the federal government. If the banks could not come to a voluntary agreement, should the federal government have forced the banks through legislation to providing $950 million financial support to help solve the ABCP liquidity crisis?

Although the Canadian banks have not suffered as much as other financial institutions around the world, they have not been immune from the economic consequences of the sub-prime mortgage meltdown. In Canada, the earliest crisis concerned the liquidity of asset-backed commercial paper (ABCP) that was affected by the precipitous decline of U.S. housing prices and the related mortgage-backed securities on which those prices were based.


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