Canada banking watchdog warns of next global crisis

CALGARY, Alberta, Mar 28 (Reuters): Canada's banking watchdog warned Sunday that that the next global financial crisis may not be far off and that now is the time for regulators to get tough on the financial industry. "I think we have seen this movie before, but the amazing thing is we continue to expect a different ending," said Ted Price, assistant superintendent of the Office of the Superintendent of Financial Institutions (OSFI), according to the prepared text of a speech in Calgary, Alberta. The world's banks are now entering a "dangerous" phase from a regulator's point of view, where profits are strong and they are increasingly willing to invest in risky assets that offer high returns, he said. What comes next is usually a reluctance to stop risky behavior even though returns are diminishing, setting the stage for the next crisis. "I believe we have passed the easy part of the cycle, and it is time for regulators to get tough," he said.