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The Canadian Commercial Bank (CCB) was a bank based in
The Canadian Commercial Bank officially began operations in July 1976, with CDN$22 million of capital. From 1976 to 1982, it operated profitably—usually in the top quartile of Canadian banking. It built a new headquarters in Edmonton, the Canadian Commercial Bank Tower in 1982.
In early 1985, after investing heavily in real estate and energy sector companies, the bank became insolvent during a period of rising interest rates and a falling Canadian dollar. The federal government arranged a $255 million bailout ($ billion today) in an effort to keep the failing institution afloat. In spite of this, the bank ceased operations on September 3, 1985. It was the largest bank failure in Canadian history and the first in Canada in 60 years, though followed shortly that year by the failure of the
Canadian Commercial Bank Financial Assistance Act [1985, c. 9]
* * {{Canadian banks Defunct banks of Canada">985, c. 9]">Canadian Commercial Bank Financial Assistance Act [1985, c. 9]
* * {{Canadian banks Defunct banks of Canada Companies based in Edmonton History of Alberta Banks disestablished in 1985 Banks established in 1976 1976 establishments in Alberta Bank failures 1985 disestablishments in Alberta Canadian companies disestablished in 1985 Canadian companies established in 1976
Edmonton, Alberta
Edmonton ( ) is the capital city of the Canadian province of Alberta. Edmonton is situated on the North Saskatchewan River and is the centre of the Edmonton Metropolitan Region, which is surrounded by Alberta's central region. The city anch ...
, Canada which failed in 1985. It received its parliamentary charter in 1975 and established its head office in Edmonton. The bank was privately owned and operated as a wholesale commercial bank.
History
The Canadian Commercial Bank officially began operations in July 1976, with CDN$22 million of capital. From 1976 to 1982, it operated profitably—usually in the top quartile of Canadian banking. It built a new headquarters in Edmonton, the Canadian Commercial Bank Tower in 1982.
In early 1985, after investing heavily in real estate and energy sector companies, the bank became insolvent during a period of rising interest rates and a falling Canadian dollar. The federal government arranged a $255 million bailout ($ billion today) in an effort to keep the failing institution afloat. In spite of this, the bank ceased operations on September 3, 1985. It was the largest bank failure in Canadian history and the first in Canada in 60 years, though followed shortly that year by the failure of the Northland Bank
The Northland Bank was an Alberta-based Canadian bank that failed in 1985. It was incorporated in 1974. It failed and was closed by the Canadian government shortly after the failure, also in 1985, of the Canadian Commercial Bank. The failure ...
.
Following the failures, the government weathered calls for the resignation of the governor of the Central Bank, Gerald Bouey. The failures of both banks were the subject of a Commission of Inquiry headed by Supreme Court of Canada Justice Willard Estey
Willard Zebedee "Bud" Estey (October 10, 1919 – January 25, 2002) was a Canadian justice of the Supreme Court of Canada.
Estey was born in Saskatoon, Saskatchewan. He was the son of James Wilfred Estey, a puisne justice of the Supreme ...
, who issued his report in 1986.
See also
*List of banks in Canada
This is a list of banks in Canada, including chartered banks, credit unions, trusts, and other financial services companies that offer banking services and may be popularly referred to as "banks".
The "Big Five"
Canada's "big five" banks ...
* Canada Deposit Insurance Corporation
The Canada Deposit Insurance Corporation (CDIC; french: Société d'assurance-dépôts du Canada) is a Canadian federal Crown Corporation created by Parliament in 1967 to provide deposit insurance to depositors in Canadian commercial banks and ...
References
Further reading
Canadian Commercial Bank Financial Assistance Act [1985, c. 9]
* * {{Canadian banks Defunct banks of Canada">985, c. 9]">Canadian Commercial Bank Financial Assistance Act [1985, c. 9]
* * {{Canadian banks Defunct banks of Canada Companies based in Edmonton History of Alberta Banks disestablished in 1985 Banks established in 1976 1976 establishments in Alberta Bank failures 1985 disestablishments in Alberta Canadian companies disestablished in 1985 Canadian companies established in 1976