The report claims the federation no longer aims to put in place measures that contribute to the economic emancipation of its members, but rather to maximise returns and surpluses. And those who run the federation now come from management schools or the banking community, it adds: and because its management is no longer politically active but paid professionals, Desjardins has lost its mission.
The report says another big transformation took place during the 1990s due to legislative changes. Traditionally banks had been forbidden from combining traditional banking and market activities, such as securities issues, insurance, brokerage and fiduciary management. But in 1991, changes to the law enabled them to form large financial conglomerates, regrouping several or all fields of financial activity.
Because Desjardins was classed as a local bank it never had to comply with the law. From the 1990s, the situation changed and it started facing competition from other banks; the movement had to enter new markets.
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