Home Capital Group Inc. is fighting to find the funds it needs to survive as deposits rush out the door. Then comes the hard part.
The Toronto-based bank has lost more than C$3.5 billion ($2.6 billion) of deposits since the end of March, hurt by Ontario’s securities regulator saying last month that Home Capital had failed to promptly disclose possible fraud among some mortgage applications around two years ago. That blew a hole in the mortgage lender’s balance sheet that can be filled only with new funding. It has started the process with an expensive C$2 billion loan that it already wants to refinance, and a sale of up to C$1.5 billion of assets.