The question is why on earth would CDIC cover deposits here?  The whole point of the traditional chartered bank model is to be diverse in lending, across industries, regions, etc. And to lend across a mix of various terms.  With collateral, decent down payments, borrowers taking a hit if they default, etc., all designed to induce good behaviour by borrowers, both personal and corporate. If a "bank" like this wants to lend on dicey terms, for one type of purchase only, with thin collateral, why is public money at risk to backstop it??  (And I know the banks themselves are not doing their traditional work either - but they are still a long way ahead of HC, let alone the outright scams lower down the mortgage food chain.)