Canadian banks have done very well and are strong in comparison to their neighbors to the south. But one reason to be wary about investing in them is that they are expanding into the US. While the bankruptcies are making it possible to pick up deals, my impression is that the US Federal government regulation which often led to bankruptcies is becoming worse rather than better. Now RBC (RY) is selling a US insurance company that they picked up a few years ago, which may be an indication that they too realize that that business is becoming more difficult in the US. But it is not surprising. Obamacare is going to bankrupt the health insurance companies.
Despite the strength of Canadian banks, I am down to an uncovered put on BNS (agreement to buy at $45). It’s been a great run for me. I’ve traded successfully on TD, RY, NA, though I lost on BNS and LB (but I have overall net gain from my positions on the banks–thank you very much!).