Bank of Canada’s role challenged by lawsuit
A lawsuit is challenging the role of the Bank of Canada and claims that it is not staying true to its constitution. The court action has been instigated the Committee for Monetary and Economic Reform and is being handled by lawyer Rocco Galati, who stopped the appointment of Judge Marc Nadon by the Supreme Court. The claim is that the BoC was established to make interest-free loans to provincial governments for infrastructure and for settling international accounts. However the group says that changes in the 70s mean that the central bank’s role has changed and private banks and mortgage lenders are fulfilling part of its original purpose.