Banks Cheer For Conservative Majority

Here is another good reason for a Conservative Majority, Bank Mergers. A crucial issue for Joe and Janey Canuck.

Of course it's not in their platform as an official position either. Wait they haven't released their platform yet. Maybe it will show up as a footnote from Monte Solberg.

Anyways include the Banks and Bay Street for those looking forward to a Conservative majority.

Tories' ascent fuels hope for bank mergers

With polls suggesting his Conservative Party is headed toward a possible majority government, Canadian investors swiftly returned yesterday to one of their favourite pastimes: Rolling the dice once more on the on-again-off-again prospect that the country's Big Six banks finally will be allowed to pursue mergers.

Shares of Bank of Montreal, the most obvious takeover target if Ottawa endorses consolidation, reached a 52-week high, finishing the day at $67.83 on the Toronto Stock Exchange -- a gain of $1.63 or 2.5 per cent. Canadian Imperial Bank of Commerce, which also figures to be prey for a larger rival, enjoyed a similarly strong day, rising 1.6 per cent or $1.24 to $80.51.

Mind you, none of these bets has paid off for investors in the past decade. But interest in the merger file has always enjoyed something of a Lazarus quality, and this latest resurrection has occurred squarely in lockstep with the sudden revival of Mr. Harper's Conservatives.

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