Jim Flaherty had one of his officials call Manulife Bank to voice his displeasure over their latest mortgage rate drop. As a result, Manulife reversed a published rate drop to 2.89% for their 5 year fixed rate mortgage. This unprecedented government intervention into the free market is a scary turn of events that threatens the principals on which our Country was built.
Anti trust laws prohibit collusion among businesses including banks and makes price fixing an illegal activity as it undermines the laws of a free market. It seems that the Finance Minister feels he is above these laws. One could argue that if your intentions are good then it’s ok to collude and fix consumer prices. The problem is that intentions are based on opinions and it’s not ok to bypass our laws or our constitution just because someone feels that they know better. No one is above the law.