Canadian Commercial Bank

The Canadian Commercial Bank officially began operations in July 1976, with CDN$22 million of capital.

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.

[3] The federal government arranged a $255 million bailout ($0.64 billion today) in an effort to keep the failing institution afloat.

Following the failures, the government weathered calls for the resignation of the governor of the Central Bank, Gerald Bouey.

[6] The failures of both banks were the subject of a Commission of Inquiry headed by Supreme Court of Canada Justice Willard Estey, who issued his report in 1986.