The roughly 70% drop in oil prices in less than two years has claimed many victims. The economies of entire countries such as Nigeria and Venezuela have been devastated. Shale oil boom towns like Fargo, N.D., have gone bust. Shares of many energy companies have been decimated — some even to the point where it is probably too late to short them. For instance, stocks like Chesapeake Energy (NYSE: CHK) and Whiting Petroleum (NYSE: WLL) have lost more than 90% of their value since oil’s peak and now trade in the low single digits. However, one group has only recently… Read More
The roughly 70% drop in oil prices in less than two years has claimed many victims. The economies of entire countries such as Nigeria and Venezuela have been devastated. Shale oil boom towns like Fargo, N.D., have gone bust. Shares of many energy companies have been decimated — some even to the point where it is probably too late to short them. For instance, stocks like Chesapeake Energy (NYSE: CHK) and Whiting Petroleum (NYSE: WLL) have lost more than 90% of their value since oil’s peak and now trade in the low single digits. However, one group has only recently begun to feel the heat from the plunge in crude: Canadian banks, which have significant exposure to oil and gas. Of the six major banks in Canada, the one that looks the most vulnerable is The Bank of Nova Scotia (NYSE: BNS). #-ad_banner-# Commonly known as Scotiabank, it is the third largest bank in Canada, with assets of C$856 billion ($639 billion USD) at the end of fiscal 2015 (Oct. 31). The bank provides financial services to 23 million customers in more… Read More