Warning from Canada watchdog

Canada’s banking watchdog warned yesterday that the next global financial crisis may not be far off and that now is the time for regulators to get tough on the financial industry. “I think we have seen this movie before, but the amazing thing is we continue to expect a different ending,” said Ted Price, assistant superintendent of the Office of the Superintendent of Financial Institutions (OSFI), according to the prepared text of a speech in Calgary, Alberta. The world’s banks are now entering a “dangerous” where profits are strong and they are increasingly willing to invest in risky assets for high returns, he said.