Canada Banks Have $633 Million in Exposure to Struggling Lender

Canadian banks have about C$879 million ($633 million) in loan exposure to struggling subprime-lender Goeasy Ltd., according to calculations based on the firm’s latest financial filings.

Goeasy shocked investors three weeks ago by suspending its dividend, withdrawing its financial outlook and disclosing about C$331 million in net charge-offs for the fourth quarter, with credit deterioration concentrated in its troubled LendCare auto-lending unit. The firm reported earnings Tuesday after delaying the release by almost a week.