Originally Posted by Doug
Except Wall Street would be free to make the move if it saw the business opportunity. Canada does not allow new Charter 1 startup banks, severely limits competition from foreign banks and would likely intervene to prevent on of the big five from moving.
Frequently I hear people complain about how much Toronto and Ontario subsidize the rest of Canada, but few people seem to be aware of policies like this. Protectionist policies are often cast as necessities from a national perspective but they are enormously beneficial to Ontario in particular and the rest of Canada pays subsidies in the form of higher prices for goods and services.
As trade barriers fall I think Ontario will lose a bit of its advantage and the historically "peripheral" parts of Canada, like BC and Atlantic Canada, will do a bit better.