Non-bank Asset-Backed
Commercial Paper
A Recipe for Disaster
(ABCP
explained, video)
|
ABCP |
Fix ABCP flaws |
23 January
2009 |
National Post |
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Fix
ABCP flaws |
23 January 2009 |
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Some
ABCP holders exchange stalled paper for long-term bonds |
21 January 2009 |
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End
of a shameful episode |
12 January 2009 |
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Canada’s C$32 Billion
Debt Plan Is Approved by Judge |
12 January 2009 |
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ABCP advisors, $200-million; ABCP investors, zero |
05 January 2009 |
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DBRS
to cut rating for new ABCP notes |
29 December 2008 |
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$4.45B fund to ensure ABCP solution |
27 December
2008 |
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Minister of Finance Welcomes Approval of ABCP Restructuring
Plan |
26 December 2008 |
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'Tentative' ABCP plan touted |
24 December
2008 |
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Retail Noteholders Seek Immediate Relief as Condition for
Governments Provision of ABCP Backstop Guarantee |
22
December 2008 |
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Foreign banks set deadline for ABCP deal |
18 December 2008 |
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Deutsche Bank,
Citigroup Threaten Canada Debt Plan |
18 December 2008 |
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Bank
lawyer warns of time ticking in ABCP saga |
18 December
2008 |
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ABCP
decision up to government: BoC's Carney |
17 December
2008 |
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Flaherty shouldn't wear ABCP mess |
17 December
2008 |
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Quebec, Alberta spurn ABCP action |
15 December 2008 |
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Flaherty urged
to ensure ABCP investment dealers, banks pay retail investors |
12 December 2008 |
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Taxpayers' cash no solution to ABCP crisis |
12 December
2008 |
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Crawford loses his influence |
12 December
2008 |
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Canadian ABCP Group
Announces Restructuring Changes |
11 December 2008 |
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ABCP
panel seeks Ottawa's help |
10 December 2008 |
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ABCP turns out to be our version of
toxic paper |
05 December
2008 |
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OSC,
QSC PROBE |
02 December
2008 |
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ABCP
restructuring won't meet deadline |
26 November 2008 |
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ABCP plan misses another deadline |
26 November 2008 |
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Advisors bill $89M, investors await funds |
19 November
2008 |
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At
least the irony is rich
see also:
"Do
you swear to spin the truth, the whole truth, and nothing
but the truth?" |
16 November 2008 |
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ABCP investor asks Prentice to reverse change in federal law |
28 October 2008 |
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ABCP
restructuring plan delayed by a month |
20 October 2008 |
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Canada Commercial
Paper Conversion Delayed to November Amid Credit
Crisis |
20 October 2008 |
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Susan Wolbourg Jenah, as past
vice-chair of the Ontario Securities Commission, granted exemptions to financial
institutions to sell ABCP to the public without a prospectus. Now, as
President of the Investment Industry Regulatory Organization, in their
report,
she blames the brokers for selling ABCP to the public and not exercising due
diligence.
see:
"Do you swear to spin the
truth, the whole truth, and nothing but the truth?"
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Brokerages failed to protect investors in ABCP fiasco:
regulator |
17 October 2008 |
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Regulator says brokers failed on ABCP, sets new guidelines |
17 October 2008 |
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Investment watchdog finds 'inadequacies' in ABCP sales |
17 October 2008 |
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Investment industry's regulator finds ABCP wasn't understood
by most dealers |
17
October 2008 |
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Letter received by clients of Credential Securities |
September 29, 2008
ABCP
Update: Credential Relief Program Implementation
To
all Credential Securities clients who hold an aggregate
of $1 million or less of ABCP:
On
Friday, September 19, 2008, the Supreme Court of Canada
announced that it will not grant leave to appeal the
Ontario Court of Appeal’s decision on Asset-Backed
Commercial Paper (ABCP). This decision clears the last
legal hurdle for the Restructuring Plan proposed by the
Pan-Canadian Investors Committee in March this year.
While
the implementation date for the restructuring has not
been publicly announced, we anticipate the process will
be completed in mid- to late-October. As previously
communicated, the Credential Relief Program must be
implemented within 20 business days following the
restructuring; however, every effort is being made to
complete the transaction and to fund client accounts
approximately one week following the Restructuring Plan
implementation date.
Once
this process is completed, the following items will
appear on your account statement. These items are
illustrated in the attached statement sample.
-
The first entry reflects a dollar amount transferred
into your account in exchange for the maturity value
of your original ABCP securities. This item will be
classified as “redemption.”
-
The second entry reflects the first interim interest
payment representing interest accrued from the
assets underlying the ABCP up to April 30, 2008, and
is payable to you in accordance with the
Restructuring Plan. This item will be classified as
“interest.”
-
The third entry reflects a reimbursement to you of
costs associated with the Restructuring Plan, which
is being refunded to you in accordance with the
Credential Relief Program agreement. This item will
also be classified as “interest.”
If
there are any additional interest payments and/or
reimbursements of restructuring costs associated with
the Restructuring Plan, these are expected to be
credited to your account within 120 days of the
implementation date of the Restructuring Plan.
Thank
you for your patience and understanding as we work
towards the resolution of this matter. Should you have
any questions about the Relief Program, please contact
your investment advisor or Credential Securities
directly at 1.877.714.3990 or at
abcp@credential.com.
Sincerely,
|
Credential
Financial Inc.
Bob Hague
Interim President & CEO
800-1111 West Georgia Street Telephone 604.714.3929
Vancouver, BC Toll-free 1.800.688.9933
V6E 4T6 |
Member of
Investment Industry Regulatory Organization of Canada |
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SUPREME COURT OF CANADA
-- JUDGMENT IN LEAVE APPLICATIONS
OTTAWA, 2008-09-19. THE
SUPREME COURT OF CANADA HAS TODAY RENDERED JUDGMENT IN THE
FOLLOWING APPLICATIONS FOR LEAVE TO APPEAL.
FROM: SUPREME COURT OF
CANADA (613) 995-4330
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DISMISSED WITHOUT COSTS |
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REJETÉES SANS DÉPENS |
|
Jean
Coutu Group (PJC) Inc. et al. v. Metcalfe & Mansfield
Alternative Investments II Corp. and Other Trustees of Asset
Backed Commercial Paper Conduits Listed in Schedule “A” to
this application et al. (Ont.) (Civil) (By Leave) (32765)
(The
motion to expedite the applications for leave to appeal
brought by the Respondents on August 27, 2008, is granted.
The applications for leave to appeal and other relief sought
from the judgment of the Court of Appeal for Ontario, Number
C48969 (M36489), 2008 ONCA 587, dated August 18, 2008, are
dismissed without costs. |
|
Groupe Jean
Coutu (PJC) Inc. et autres c. Metcalfe & Mansfield
Alternative Investments II Corp. et autres fiduciaires de
fonds multicédants figurant sur la liste constituant
l'annexe A de la demande et autres (Ont.) (Civile) (Autorisation)
(32765) La requête
présentée par les intimés le 27 août 2008 en vue d’accélérer
le traitement des demandes d’autorisation d’appel est
accordée. Les demandes d’autorisation d’appel et d’autres
redressements relativement à l’arrêt de la Cour d’appel de
l’Ontario, numéro C48969 (M36489), 2008 ONCA 587, daté du 18
août 2008, sont rejetées sans dépens.) |
Coram: LeBel / Fish / Charron |
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 |
Diane Urquhart's
Statement on ABCP CCAA Restructuring Plan Decision of the
Supreme Court of Canada |
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The Great Wall Street Swindle &
Canadian Non-Bank ABCP
14 September 2008
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18
August 2008 |
18
August 2008 |
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19 August 2008 |
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19
August 2008 |
Purdy
Crawford: The corporate investors there will be an
over-the-counter market for this paper once it's
restructured.....they're not suffering... |
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Poor risk management blamed
as ATB takes a $30-million hit & $230-million writedown |
03 October 2008 |
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ABCP set to go after top
court rejects appeal |
19 September 2008 |
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Court
turns down ABCP appeal |
19
September 2008 |
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ABCP
legal challenge denied |
19
September 2008 |
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Mining
firm digs in on ABCP ruling |
September 2008 |
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Asset-backed commercial paper:
alerts for directors and officers
|
09
September 2008 |
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Response of
the ad hoc committee of retail noteholders
to the Applicant's Applications for Leave to
Appeal |
05 September
2008 |
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ABCP plan backers
argue against a Supreme Court hearing |
05 September 2008 |
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Investors challenge ABCP
plan: 'Bought vote' contrary to public policy, it says |
03 September 2008 |
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ABCP challengers file
arguments with court |
02 September 2008 |
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ABCP delays 'a
concern,' Flaherty says |
29 August 2008 |
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Swift Canada high
court decision sought on ABCP |
27 August 2008 |
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Disgruntled investor
will appeal ABCP ruling |
23 August 2008 |
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Metcalfe &
Mansfield Alternative Investments II Corp., (Re), 2008 ONCA
587
DOCKET: C48969 (M36489)
COURT OF APPEAL FOR ONTARO |
18 August 2008 |
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Minister of Finance
Welcomes Court Decision
on Asset-Backed
Commercial Paper Restructuring
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13 August 2008 |
13 August 2008 |
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One year has passed and investors are still out in the cold. |
Bruce Boyd & Wynne Miles
ABCP Investors |
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ABCP
restructuring plan hits new snag as lawyer plans to appeal |
19 August 2008 |
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ABCP
may land in top court |
19 August 2008 |
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Ruling on ABCP restructuring plan likely won't mark and end
to courtroom battles |
18 August 2008 |
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Ruling on ABCP restructuring plan likely won't mark and end
to courtroom battles |
18 August 2008 |
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Court upholds ABCP plan |
18 August 2008 |
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In
ABCP ruling, judges approve legal shield |
18 August 2008 |
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ABCP case coming out Monday |
15 August 2008 |
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JPMorgan, Morgan Stanley
Near Auction-Rate Settlement |
15 August 2008 |
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2 More Banks to Buy Back $7
Billion in Securities |
15 August 2008 |
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Regulators unearth
disclosure shortfalls |
14 August 2008 |
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Investors anxious for ABCP
ruling |
14
August 2008 |
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ABCP
investors remain in limbo |
13 August 2008 |
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Renewed Heat On ABCP? |
13 August 2008 |
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Retail ABCP holders ask regulators to intervene |
12 August 2008 |
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Court delay on ABCP no worry: Canaccord |
11 August 2008 |
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ORDINARY PEOPLE, AN EXTRAORDINARY MESS |
08 August 2008 |
|
They were conservative investors who
thought their money safe. After all, their advisers told them this was
the case. Then came the ABCP debacle. One year later, these ordinary
investors are still wondering: How did this happen? |
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In their words
| Ordinary ABCP
investors told The Globe and Mail their stories
of investing in the ABCP market that seized up a
year ago. Here is a sampling of their comments: |
“I was
told T-bills of this size were not always available, but
these investments were just as good and always available. …
This was seasonal money that was needed for the farm bills
during the year.”
-D.F. McIvor
in Maple Creek, Sask.
“My
73-year-old illiterate mother got invested into ABCP
unbeknownst to her or myself, as a Canaccord broker placed
her ‘safe' money into it without checking or explaining.”
-Serge Biln in Toronto
“I
recently sold my property and had approximately $600,000 to
invest. I was looking for something that was 100 per cent
guaranteed and was liquid on short notice. … I cannot stress
hard enough how many times I asked him and was assured that
my funds were 100 per cent guaranteed.”
-Jack Swann
in Sherwood Park, Alta.
“ABCP
has been a huge nightmare for my husband Todd and me, to put
it mildly. … This is all of our life savings. I am 40 years
old and I have been putting money into RRSPs since I was
about 24 or 25. I started out at $50 per month and gradually
built from there. My husband and I don't have much, but this
is all we have.”
-Keri Lukacs, with her husband Todd, in Red Deer, Alta.
“My
experience with ABCP started in May, 2007, when my broker at
Canaccord Securities suggested we put our house cash in it
for a few months until our new house purchase was
completed.”
-Reid Moseley
“I am
61 years old. This is my life savings. I now have to get a
job. This money was for me to make up my income. My choices
to buy a car, take a vacation, do repairs to my house have
been taken from me.”
-Iris Pearce at her home
in St. Catharines, Ont.
“I was
told ... that this type of investment was just like a
T-bill, with the highest credit rating and fully cashable at
any time. When I returned [from a trip] and had the time to
invest this cash with more detailed study, I tried to cash
this investment and was told I could not cash it. I soon
found out why.”
-Susan Anastas
“They
were sold to me by Canaccord Capital and described very
briefly as a safe and secure investment similar to, and as
safe as, a GIC.”
-Emanuel Valder
“If you
were say investing in a mutual fund or something like a bank
stock, and you knew what you were buying, you'd know the
possibility that it was going to lose money. But in this
case, we weren't informed.”
-Alan Jones with his wife Julia, in Nanaimo, B.C.
“Forty-one years we have been married, and this was all our
savings. Our children depend on it. … Our RRSPs, our
savings, everything was in this.”
-Angela Speller in Victoria, B.C.
"We were told by our investment adviser that if ABCP failed,
so would the entire banking industry in Canada. That
statement convinced me we were getting into something
completely safe."
-Murray Candlish, with wife Cindy, in Daysland,
Alta. |
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Playing the blame game |
10 August 2008 |
|
"Back in August, I had no clue," Ms. Wolburgh Jenah says. "I didn't know
there were retail investors, or how many retail investors. Nobody here
knew, either ... It took us a long time to start getting answers to
those questions."
-
Susan Wolburgh Jenah, who heads the Investment Industry Regulatory
Organization of Canada (IIROC)
|
Susan Wolburgh
Jenah |
REALLY
???...
"The IDA has been
closely monitoring the non-bank Asset-Backed
Commercial Paper (ABCP) situation since August 2007.
On August 16, 2007 --
24 hours after the onset of the liquidity crisis --
the IDA contacted all member firms to determine
their exposure to any ABCP inventory and customer
margin holdings."
|
07 April 2008 |
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15 April
2008 |
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What about the OSC??? (National
Post)
Jim Turner,
vice-chairman of the OSC, said the commission is
relying on the IDA to do the gumshoe work because
the matter is more directly part of the IDA's
jurisdiction.
Mr. Turner disagrees
that the OSC has acted improperly. As soon as ABCP
started going wrong last summer the market froze, so
"we didn't feel we had to jump in to protect
investors," he said. After the restructuring
plan was launched, the OSC purposefully kept its
distance because it did not want to interfere with
something that might help noteholders get some of
their money back. |
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"The local
securities regulatory authority or regulator
(the Decision Maker) in each of the
Jurisdictions has received an application
from the Filer for a decision under the
securities legislation of the Jurisdictions
(the Legislation) for:
(a) an
exemption from the dealer registration
requirement in respect of a trade in a
negotiable promissory note or commercial
paper maturing not more than one year from
the date of issue (together Commercial
Paper); and
(b) an exemption from the prospectus
requirement in respect of the distribution
of the Commercial Paper, (collectively, the
Requested Relief).
Under the
Mutual Reliance Review System for Exemptive
Relief Applications
(a) the Ontario Securities Commission is the
principal regulator for this application,
and
(b) this MRRS decision document evidences
the decision of each Decision Maker."
So who was
granted the exemption by
Susan Wolburgh
Jenah? - just to name a few....
 |
17 May 2006 |
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23 October 2006 |
 |
26 April 2006 |
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RBC,
U.S. watchdogs talk securities settlement |
22 August 2008 |
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3
Banks Settle Securities Case With New York |
22 August 2008 |
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New
York may sue Merrill |
21 August 2008 |
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Brokerages face auction rate probe |
20 August 2008 |
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UBS
to Spend $19.4 Billion to Buy Back Securities |
09 August 2008 |
|
BOSTON
(AP) — The Swiss bank UBS has reached a $19.4 billion
agreement to buy back bonds in the biggest settlement yet
over claims that banks misled investors to buy auction-rate
securities, the Massachusetts secretary of state’s office
said Friday.
The agreement has been reached between UBS Financial
Services and the Securities and Exchange Commission and
regulators in several states, including Massachusetts and
New York. |
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2
Banks Buying Back $17 Billion in Securities |
08 August 2008 |
|
Two major Wall Street firms on Thursday
offered to buy back more than $17 billion of troubled auction-rate
securities that they had marketed as being as safe and liquid as cash,
moving quickly to contain the legal fallout from the credit crisis.
Citigroup will buy back $7.3 billion of the securities and pay $100
million in fines as part of a settlement with state and federal
regulators announced on Thursday morning.
Hours later, Merrill Lynch, without entering into a settlement, offered
to buy back $10 billion of similar securities that it had sold to
thousands of individuals. Neither firm agreed to reimburse institutional
investors. |
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Citigroup Agrees to Buy Back Securities for $7 Billion |
07 August 2008 |
|
In a
statement, the New York attorney general Andrew Cuomo said
that Citigroup would buy back, by Nov. 5. auction-rate
securities from individual investors, charities and small-
and mid-sized businesses. These customers, about 40,000
nationwide, have been unable to sell their securities since
Feb. 12, the statement said.
“Our goal is simple: to get investors back their money, and
that’s exactly what this deal does,” Mr. Cuomo said. |
|
|
Don
Harold.net
How different is the
Canadian story on ABCP??? Where are Canadian
regulators??? |
07 August 2008 |
 |
|
ABCP
mess highlights flaws |
May 2008 |
|
The fallout from the third-party ABCP disaster has shone a bright light
on major investor protection issues centering on mis-selling, due
diligence failures, flawed underwritings, and unsuitable products and
advice. It has exposed fundamental flaws in our regulatory structure and
system. And it has highlighted gaps in the capability of a large portion
of the Canadian investing community to make sound investment decisions.
This sorry state of affairs has been greeted with a deafening silence
from the regulators that share investor protection mandates and from the
financial institutions and related industry participants, that with some
justification are waiting to see how this situation plays out. |
|
|
17 July 2008 |
Waugh: ...buy Bank of
Nova Scotia, I’m not a promoter…whatever. All my net worth is in
Bank of Nova Scotia. I’m sleeping at night.
If you really think a bank…what is
our core competency? It’s risk management. How did we
get things wrong? It’s risk management. When we get things
wrong. It’s risk management.
Howard: How come banks weren’t saying that two years ago?
Waugh: Well, you know, it’s, it’s our business. We
make mistakes in risk and we, over two years ago, we
were…markets were good. Ah, things were going well - liquidity
and, and several of us got complacent. Too complacent. |
|
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Time to clean house, say bankers |
18 July 2008 |
|
"There were serious weaknesses in the business practices
of a number of firms," said Dr. Josef Ackermann, the
chairman of Deutsche Bank AG, who heads the Institute of
International Finance. "It is essential for the industry
to reform."
-
Dr. Josef Ackermann, chairman of Deutsche Bank AG
Aren't
Scotiabank and Deutsche Bank up to their necks in the ABCP
crisis? |
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Sanction
Order - Reasons for Decision |
05 June 2008 |
|
ABCP Sanction Order |
05 June 2008 |
|
|
ABCP SECOND CASE CONFERENCE
REPORT (NO. 2 ) MAY 2008
(posted May 3, 2008)
Justice Colin Campbell, in a case
conference earlier this week, asked all the lawyers to submit
their positions on the impact on their clients of the CCAA
restructuring plan being approved without amendment. The lawyers
were
asked to identify whether their clients wished to sue any of the
parties, to identify the parties and causes of action and to
estimate the dollar amount of remedy that would be sought. The
attached documents were filed in the
court today, May 2, 2008, by the court monitor, Ernst & Young,
as a summary of the submissions made by the lawyers in response
to the judge's directions.
In a document submitted May 1,
2008, Juroviesky and Ricci LLP and Shibley Righton LLP,
Co-Counsel for the Retail Owners Group, indicated that the
retail customers of Canaccord and Credential, who had received
cash par settlements plus residual accrued interest, needed to
have the Non Bank ABCP restructuring plan approved
without material amendment in order to be paid their cash. The
Submissions May 1, 2008 document from our lawyers indicated that
there were large retailowners that were left out of the cash par
settlements who wish to sue their investment brokerages and
certain other parties. Today's attached documents from the court
monitor Ernst & Young say the following about the large retail
owners covered by the Legal Representation Order for the Ad Hoc
Retail ABCP Holders Group.
Justice Colin Campbell has set the
dates of May 12 & 13, 2008, to hear more from the parties about
the fairness and validity of the legal release in the CCAA
restructuring plan, after which he will make his final decision
to
approve the CCAA restructuring plan without amendment or to
approve the CCAA restructuring plan with the amendments he
orders. After that parties have 21 days to file their appeals.
The appeals are expected to be heard on an accelerated basis.
|
Summary Chart of
Alleged Claims
National Bank Summary
of Claims
Conduit Parties
Sixth Report of the
Monitor dated May 1, 2008 |
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#
Headcount |
$
Face Amount |
|
Total Vote |
1,932 |
$30.0 billion |
|
Votes Yes |
1,853 |
$28.8 billion |
|
Votes % Yes |
95.9% |
96.1% |
|
|
Superior Court of Justice Ontario
(Commercial List) |
24 April 2008 |
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Legal Opinion on Canaccord and Credential ABCP Relief
Programs |
22 April 2008 |
|
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Juroviesky and Ricci LLP
and Shibley Righton LLP appointed Representative Co-Counsel
for Retail Holders of ABCP |
15 April 2008 |
|
|
MP Paul Crête
Bloc Québécois
Député à la Chambre des
communes |
|
14 April 2008
|
|
James Flaherty
Minister of Finance |
|
Mr. Paul Crête (Montmagny—L'Islet—Kamouraska—Rivière-du-Loup,
BQ): Mr. Speaker, the Minister of Finance said the
commercial paper crisis was only further proof of the
need for a single securities regulator. The
Parliamentary Secretary to the Minister of Finance went
even further. It is sheer hypocrisy, considering that
the banks, which are responsible for this crisis, are
already under his responsibility and that of the Office
of the Superintendent of Financial Institutions.
Instead of seeking false pretenses for his plans, which
no one except Ontario wants, should the minister not
admit that he and his Superintendent of Financial
Institutions are the ones who abdicated their
responsibilities in the commercial paper crisis?
Hon. Jim Flaherty (Minister of Finance, CPC):
Mr. Speaker, Ontario is de facto regulating
securities in Canada, since over 80% of all transactions
take place there.
We believe that the constitutional jurisdictions of each
level of government must be respected. We are aiming to
establish a common securities regulator that will work
with the provinces and territories, not a federal
agency.
Mr. Paul Crête (Montmagny—L'Islet—Kamouraska—Rivière-du-Loup,
BQ):
Mr. Speaker, instead of blaming the securities
commissions in Quebec and the provinces, the Minister of
Finance would be better off to clean up his own
backyard. He is the one responsible for banks, yet he is
doing nothing about the situation at this time.
How can the Minister of Finance explain that neither he
nor the Office of the Superintendent of Financial
Institutions have taken any action with the banks to
prevent the commercial paper crisis and therefore
protect investors? Why did he decide to leave them to
fend for themselves?
Hon. Jim Flaherty (Minister of Finance, CPC):
The member opposite is mistaken, Mr. Speaker. Most
of the entities who were selling the non-bank,
asset-backed commercial paper were under the
jurisdiction of the provincial securities regulators.
This is a serious problem. It is a gap in dealing with
this issue and the solution has to come from the
Government of Canada and the Bank of Canada.
It
is we who had to create the Montreal table, create a
forum to resolve this issue, and hopefully it will be
resolved. The provinces were not there.
Neither were retail
investors - but only because they weren't invited.
In addition, it was
the Office of the Superintendent of Financial
Institutions, who gave the federally regulated banks a choice on how to
back-stop an ABCP market failure.
see: "OSFI
tiptoes around elephants", National Post, 18
April 2008
"The original OSFI guidelines set
out that banks either had to set aside a large chunk of
capital to prevent a default in the event demand for
short-term ABCP dried up or they could offer conditional
liquidity protection in the event of a vaguely defined
"general market disruption" (GMD). The banks opted for
the latter..."
"OSFI on ABCP Hook?",
National Post, 08 April 2008
"OSFI made
what amounts to a cozy club deal
with Canadian banks when it allowed
the banks to use a variation of the
market disruption clause that is
recognized internationally, in their
ABCP structures. The fine legal
question is whether that amounted to
regulatory negligence. And if it
does, did OSFI's duty extend only to
the regulated institutions or the
wider market?"
OSFI
Statement of Defense,
OSFI
defends its role in frozen paper
mess, Globe and Mail, 22
April 2008 |
|
|
Ken Georgetti
President Canadian Labour
Congress |
Open Letter
08 April 2008
The largest labour
federation in Canada representing 3.2 million working
women and men who have pension plan investments
estimated at over $300 billion dollars. |
|
|
Mike Miles (Retail ABCP holder) |
Letter from
Michael Miles
to
Thomas Mulclair
and
Joe Comartin
07 April 2008 |
|
Thomas Mulclair
Official Spokesman for the
New
Democratic Party in Québec |
Joe Comartin
NDP Deputy House Leader,
Justice Critic |
|
|
12 October 2007
Direct Engagement |
Moving towards a National Securities Regulator
The Honourable Jim Flaherty, Minister of Finance
(very short excerpt on ABCP)
"We have
challenges. Purdy is working on a challenge in Montreal right now
which may be relevant actually to our discussion. Given that when
one gets into the asset–backed commercial paper in Canada,
who was
regulating that? Or not?" |
|
|
04 March 2008 |
Reid Moseley speaks at Scotiabank's 2007 Annual Meeting |
|
|
07 March 2008 |
ABCP Hurts Ordinary Investors with
Extraordinary Stories
BNN talks to Jill O'Hara (Victoria) and
Reid
Moseley (Calgary)
Jill O'Hara: "My broker, without my
knowledge or consent, invested my savings in commercial
paper. I was told it was a term deposit, fully
secured, ...
... I found out my money
wasn't available."
...
So where
are the securities regulators? |
|
|
11 March 2008
|
Burned Investors
CBC talks with Brian Hunter
Dave Simms: The
petroleum engineer is in for $678,000 dollars, in what he
thought were low-risk securities.
Brian Hunter:
"My broker rolled it into what he considered to be another
T-Bill or GIC, BA type investment, that turned out to be
this asset-backed commercial paper."
...
Alex David: Given the
situation that banks are in, I think they're looking for
ways to actually get out of this financing if they can. |
|
|
17 March 2008 |
Economic Turmoil
Global TV talks to Murray & Cindy
Candlish
"...no risk, we wanted to sleep at
night. Told it was as safe as a GIC." |
|
|
17 March 2008 |
BNN talks to Huston Loke, DBRS
DBRS has its neck on the line
in rescue plan |
|
|
19 March 2008 |
"There are many many retail
investor who hold relatively small amounts of paper ..."
Small to
whom??? The Accord Committee???
Amanda Lang: "Are those investors who are in
this, quite by accident, some who may have been dealing with
brokers who didn't understand the product, weren't told
about the risk level of the product. Can you deal with any
of that or is that beyond the purview of what's happening
right now?"
Purdy Crawford:
"...I have great empathy for those people...and we are
going to do everything we can in terms of a healthy
secondary market and where feasible use moral suasion to try
to find a way,
apart from the secondary market to help the people over and
above what results from the restructuring."
... |
|
"The reality is that
everybody has learnt such a lesson here that it's probably
not going to happen again. it'll be some other financial
product 8 or 10 years from now that's developed, gosh knows
what...."
Amanda Lang: Who's going to pay the cost of all this,
of the Montreal Accord...?
Purdy Crawford: ...The costs are currently
being paid by the members of the committee I chair.
If the restructuring is approved, the costs will be paid out
of the restructuring...out of the results that flow.
If it's not approved, then the members of my committee will
have to absorb the costs.
Amanda Land: So retail investors will share in
those costs?
Purdy Crawford: If the plan is approved, yes. |
Since
retail investors were not part of the Montreal Accord
Committee how could that same Committee dictate that retail
investors will share in the costs of the Committee's
proposal if successful??? How would you expect
retail investors to vote? What lesson have investors
learned here - other than not to trust the financial
services industry???
Affidavit of Purdy Crawford
(p.17. para.57)
|
The Committee
agreed that the investors represented on it,
besides bearing their own individual costs,
would pay the costs for the Committee's
advisors, which costs were intended to be
recouped from the Conduit assets in the event of
a successful restructuring. |
See Committee Members
(p. 30. para.108)
|
The Plan includes comprehensive
releases for virtually all participants in the
Canadian ABCP market, in addition to the
Respondents and the Conduits. The releases have
been included because certain key participants,
whose participation is vital to the
restructuring, have made comprehensive releases
a condition for their participation. |
What are they afraid of?
What are they trying to hide?
(p. 30. para.109)
|
The Asset Providers have no
direct contractual relationship with the
investors. |
Not
even the brokers?
(p.30 para. 111)
|
All of the Asset Providers
or their affiliates were Liquidity Providers and
some were also
Broker Dealers. The releases extend to
them in those capacities as well. |
(p. 31. para. 112)
|
...they require the investors to
release all parties who might be sued by the
investors, because such parties might then claim
that the Asset Providers in one of their
capacities should indemnify them for any
liability to investors, an event which, if it
occurred, would defeat the finality and
certainty that the releases are intended to
provide. |
How
many lawyers can dance on the head of pin?
(p. 31.
para. 113)
|
The Asset Providers have
specified that the releases extend to the
Sponsors, the original trustees of the Conduits,
the Respondents, the Indenture Trustees, the
Liquidity Providers, the Broker Dealers,
the Canadian Banks and DBRS Limited, the
rating agency that provided investment ratings
on the Conduits and the ABCP...Some of these
parties have themselves agreed to give up their
existing contractual claims against the Conduits
and their trust assets for indemnity. |
Has to make you
wonder who and why....
(p.32 para. 114)
|
(Simply put, there can be no Plan
unless these releases are included. |
Perhaps another National
Inquiry is necessary?
If a bird looks like a duck,
swims like a duck and quacks like a duck,
then it's probably a duck.
(The
'Duck Test')
Excerpt from
Court Order
|
“They
haven't put enough on the table to make
it worth my while to sign the release,”
said Brian Iler, a Toronto commercial
lawyer who owns $229,000 of the marooned
notes. Mr. Iler argues he is legally
entitled to get back all of his money
because when he transferred his savings
to an Ontario Credit Union investment
account last year he specified that he
only wanted to buy government-backed
investments.
“If they are not going to make me whole,
why would I sign away my rights to hold
people accountable?” he said.
Globe and
Mail, 25 March 2005 |
|
|
|
Wynne Miles
(ABCP holder)
18 March 2008 |
House of Commons Standing
Committee of Finance (FINA)
Motion for Hearing on non Bank
ABCP
31 March 2008
|
John McCallum
Liberal Finance
Critic
18 March 2008
MP agrees to delay hearings into ABCP crisis
National Post, 31 March 2008 |
|
Wynne Miles: ""We don't have deep
pockets. We can't wait for 5 to 8 years for our money.
We need our money back now - with interest please.
We were sold this faulty
savings product without our knowledge or consent.....We
trusted our financial adviser and Canaccord to invest our
savings in T-Bills an a safe product such as T-bills... as
of July 26, 2007 we had a
significant portion of our retirement savings in Government
of Canada T-bills (treasury bills) and then
the next day
they were in something called structure investment
commercial papers. We did not even know what an ABCP
was until we heard of the freeze in August." |
In July, as concern
grew in markets about subprime, Mr. Mavor said
Barrick asked CIBC
about exposure, and was told there was none. As a
result, he said Barrick on
July 26 bought $33-million more of paper.
Barrick intent on
suing CIBC over ABCP, Globe and Mail, 18
April 2008 |
|
|
The ABCP black box explodes ,Globe and Mail, 16 November
2007
"Some dealers felt they
were in an awkward situation – Coventree had told them
something that the world at large didn't know. Sources
said at least two of the banks, RBC and
Scotiabank, pushed to have the details made more
widely known, perhaps via a press release.
When that didn't happen, RBC went further. On Friday,
July 27, representatives of the
bank, including RBC's head of fixed income and currencies
for Canada, Peter Dymott, called David Allan to say the bank
was giving Coventree the required 30 days' notice to resign
as a seller of its paper."
What is clear is that in
the face of a financial meltdown, the Bank of Canada,
foreign and Canadian commercial banks and institutional
investors such as the Caisse had to make snap decisions that
had profound effects on investors and the Canadian economy.
But since then, many investors – big and small – have been
left to wonder why little of this behind-the-scenes turmoil
was ever explained to them as they purchased paper.
“If that is accurate, it is
a big deception,” said André Belzile, chief financial
officer of Quebec pharmacy chain Jean Coutu. His company
bought $35.7-million of asset-backed commercial paper from
Aug. 2 to Aug. 10 from National Bank of Canada, its bank of
45 years.
“They never,” Mr. Belzile said, “mentioned a thing.” |
|
|
|
Larry Caskey
25 March 2008 |
Larry Caskey:
"Our advisor decided that this was a prudent or a good investment
and he invested my wife and myself in this product without
discussing with us and without our knowledge of what ABC paper was
in fact we didn't know what ABC paper was until after the market was
frozen for this particular product.
Howard Green:
Typically does your investment advisor make all of your investment
decisions?
Larry Caskey:
My investment advisor does not have discretionary decision making
and it was unusual.
...
Howard Green:
Have you had any conversations with the committee?
Larry Caskey:
Not at all. No-one has called me. No-one sent me a letter.
The last communication I've had on this was from my advisor
Credential Securities on November 15th.
Howard
Green: Have you tried to get in touch with the
committee?
Larry Caskey:
Yes I did. I originally I did try and I was told that I must
sign some type of waiver in order to secure a certain type of
information and I wasn't prepared to sign any waivers. |
|
|
Purdy Crawford
26 March 2008 |
Amanda Lang:
You've heard - I've heard from investors who were
put into product they didn't want to be in.
Purdy Crawford:
M...hmmm.
Amanda Lang:
They were put there without their knowledge, I'm not
saying all of them, but I know some of them were
because I've heard from them. Should they get
some different deal? Should they be treated
differently then somebody who willingly bought
something that then ran into market trouble?
Purdy Crawford:
That's an incredibly complex thing to do on an
overall basis. I think that part of it is the
IDA should be looking into that and they can fine
and I assume they can turn the fines over to the
investors - but I'm not sure.
|
|
|
28 October 2002
p. 7 |
Rebuilding Investor
Confidence
Joe Oliver President &
CEO
Investment Dealers
Association of Canada (IDA)
"However, like the
securities commissions and the police, our
disciplinary process does not provide restitution for the
client. Since not everyone is aware of this
fact, some people are surprised and disappointed that
their central problem, financial loss, has not been
addressed. Even those who do understand this limitation
are still left with the problem of trying to get their money
back." |
|
|
27 March 2008
BNN Squeeze Play |
Amanda Lang:
"One of the shoes still to drop, and we'll talk about
this on this show, is the regulatory side. There are people,
middlemen, who are supposed to be watching this and if
clients were put into product that they shouldn't have been
put into, the "know your client" rule was there to protect
them, there are other mechanisms that may well protect some
of these investors. Some of whom should not have been
in this stuff."
Kevin O'Leary: "And
that brings my second rule. Don't you ever think for a
second that government gives a damn about your investments."
Amanda Lang:
"We're talking about self-regulatory
bodies - not the government."
E-mail Amanda Lang:
squeezeplay@bnn.ca |
|
Colin Kilgour
28
March 2008 |
Colin Kilgour:
"I am advising a range of corporate clients as well as
acting as an independent advisor for the Canaccord clients.
So I have two groups of clients that I am working with.
...
The weakness in this
restructuring plan is these releases that are a key part of
it. I understand Purdy Crawford when he talks about
this as the 'art of the possible', that these releases are
required primarily by the asset providers. These
releases are causing a lot of heartache for people who might
like to pursue legal channels.
... |
|
The releases basically are a
key part of this restructuring as demanded primarily by the
international banks who are the asset providers to these
underlying conduits. They are demanding that everybody
whose ever had a part in this market or is currently a part
of this market get released from any future or any liability
for any sins they may have committed, or may not have for
committed, at any time in the past for whatever reason.
So it is a very omnibus far-reaching release that says once
this thing goes through - nobody can sue anybody for
anything. Period. And that is the intent
of it."
As per the NOTICE OF PROCEEDINGS AND MEETING AND
INFORMATION STATEMENT
"...the
Schedule I Canadian banks further require...as a
condition of the compromises and contributions they are
making, assurance that no claims will remain following
implementation of the Plan that could lead to claims against
them for contribution and indemnity." |
|
|
|
 |
|
Canadian Asset-Backed Commercial Paper CCAA
Proceedings |
|
The Montreal Accord Committee Members
ATB Financial,
Caisse de dépôt et
placement du Quebec ("CDPQ"),
Canaccord Capital Corporation,
Canada Mortgage and
Housing Corporation,
Canada Post
Corporation,
Credit Union Central
Alberta Limited,
Credit Union Central
of British Columbia,
Credit Union Central
of Canada,
Credit Union Central
of Ontario,
Credit Union Central
of Saskatchewan,
Desjardins Group,
Magna International
Inc.,
National Bank of Canada/National
Bank Financial Inc.
(collectively,
"National Bank"),
NAV Canada,
Northwater Capital Management Inc.,
Public Sector Pension
Investment Board ("PSP Investments"),
and the Governors of
the University of Alberta. |
|
|
|
28 March 2008
Gary
Carter, Vancouver Island
Jill O'Hara, Victoria |
|
|
 |
|
Where are the
provincial securities commissions ??? They are the
ones charged with administration of the provincial
securities acts. Not the IDA or IIROC.
|
|
 |
|
 |
BC Securities Commission
Know your client and
suitability rules
48 (1) A registrant,
except an underwriter or a securities adviser, must make
enquiries concerning each client
(b) to determine the general
investment needs and objectives of the client, the
appropriateness of a recommendation made to that client and
the suitability of a proposed purchase or sale for that
client.
(2) If a registrant considers
that a proposed purchase or sale is not suitable for the
investment needs and objectives of a client that is an
individual, the registrant must make a reasonable effort to
so advise the client before executing the proposed
transaction. |
|
ONTARIO SECURITIES COMMISSION
RULE
31-505
1.5 Know your Client and
Suitability
(1) A person or company that
is registered as a dealer or adviser and an individual that
is registered as a salesperson, officer or partner of a
registered dealer or as an officer or partner of a
registered adviser shall make such enquiries about each
client of that registrant as
(b) subject to section 1.7,
are appropriate, in view of the nature of the client's
investments and of the type of transaction being effected
for the client's account, to ascertain the general
investment needs and objectives of the client and the
suitability of a proposed purchase or sale of a security for
the client. |
|
8 months later, where are the
regulators??
Don't just file your
complaint with the IDA, file it with the provincial
securities commission as well!
Another reason why we
need a Common Securities Regulator with a legislated mandate
for investor protection similar to the mandate of the
National Health Protection Branch and/or the Canadian Food
Inspection Agency.
Here is an
extract from OSC
decision to recognize the IDA.
|
WHEREAS the necessity for
interaction between the IDA and the
Commission results from: |
|
b. |
the
fact that the IDA regulates, by its
by-laws and regulations, the conduct
of its members and matters related
to their trading in securities,
areas which ultimately are the
responsibility of the Commission. |
|
The IDA is not a statutory
body which exercises a statutory power of decision.
The securities commissions
are statutory bodies!!! The securities
commissions do not confer jurisdiction on the IDA
but merely impose a duty on the recognized SROs to
regulate the operations and the conduct of their
members subject to their own association bylaws and
constitution.
The failure of a person to
perform a lawful duty is a divergence from the
performance of
that duty and amounts to
negligence.
|
The IDA
makes the following contribution
|
15 April
2008 |
|
|
|
Brian Hunter
20 February 2008
Letter received from
Canaccord Capital |
Yulan Wong, a
retired real estate agent, has $300,000 invested
through Canaccord in ABCP.
20 March 2008 |
Calgary pastors Garry &
Merelyn Webber
19
March 2008 |
|
Ron
Lawley, a retired computer technician has $210,000 in ABCP.
31
March 2008 |
Brain Iler, a Toronto
lawyer, says his account holds about $229,000 of ABCP
31
March 2008 |
Nick
Kovics, a chemical engineer, found out he had $100,000 in
ABCP.
31
March 2008 |
|
Retired engineer Peter Myers
shows his frustration yesterday while questioning an ABCP
panel in Edmonton
01
April 2008 |
Linda Paget and Wayne Duke, who
spoke to the committee on Tuesday, have about $130,000 and
$200,000 respectively tied up in the troubled
ABCP
market.
02
April 2008 |
 Victoria
resident Angela Speller, who along with her husband had
invested 41 years of savings in the tainted notes through
Canaccord Capital Inc..
03 April 2008 |
|
Layne Arthur
05
April 2008 |
Mark Wasserman
05
April 2008 |
Simon Jegher
05 April 2008 |
William Wisenthal
05 April 2008 |
|
|
|
David Agnew
31
March 2008
OBSI Advisory to ABCP
Clients |
David Agnew: We're
an independent body that does dispute resolution when a
client of either an investment firm or bank can't
resolve the dispute with that institution. We operate up
to, and it's relevant for this story, we operate up to a
limit of about $350,000. So clearly there are
people, looking at the numbers that we've seen, who are
out of our range, but of course lots in it. We operate
on the basis that you try to resolve your problem. If
you can't you can come to us........We are talking to
the firms, we are talking to regulators.
...
Obviously what we're
concerned with is...the impact , at the end of the day,
on the retail investor and it comes down to the basic
issues, of were people aware of what they were
getting in to, was it disclosed properly, was it
suitable for their accounts, was there trading that they
were aware of?
... |
|
We're focused on how did
it end up in these peoples' accounts and what were they
told. What were they disclosed. Now, I say that,
with...we have not opened up any investment
investigation files we haven't had a really good look at
this stuff. So, I'm just telling you about what we
are hearing...
We're watching, along with
all of you and the rest, just to see what happens over
the next couple of weeks.
Amanda: ...is
there some other change, you think, that needs to happen
so this couldn't happen again
David Agnew:
...there is a common theme, which is disclosure, or lack
thereof. I think it really, it's a , it comes down
to a fundamental issue of, you know,
Know-Your-Client, know your product. Lay it
out, particularly when we're obviously dealing, in
many cases, with people who are risk adverse. Who
have short term investment objectives and so on. That's
just good business. That's good practice.
Jacquie McNish: Isn't another issue trust?
Why were elderly people being sold these investments
with obviously not very much explanation?
David Agnew: I
think that's one of the issues...there's obviously some
regulatory bodies that will want to look at this and I
think that's going to part of the mix.
...
...we saw this around the
income trust issue, where people were looking for a
slightly higher edge. It's not clear in all these
case, from what we've heard, that that was actually the
case.
KNOW YOUR CLIENT and
KNOW YOUR PRODUCT are regulatory requirements. |
|
|
Pan-Canadian ABCP Committee
Announces Details of Investor Meetings |
Accord
Handout
|
Venue Details
|
|
The bulky information tome
alone is annoying, Crawford
agreed in an interview. "If
I'd been in their position
and somebody gave it to me,
I'd probably throw it across
the room and say the hell
with this."
Edmonton Journal, 01 April 2008 |
|
The Accord
knows that if retail ABCP holders don't vote that there is a
far greater chance that the Montreal Accord Proposal will be
approved.
As per the NOTICE OF PROCEEDINGS AND MEETING AND
INFORMATION STATEMENT
if
voting by proxy.
...when the Noteholder
has specified a choice, (it)
will be voted in accordance with that specification.
In the absence of any specification on the
Form of Proxy, the proxy will be voted FOR
approval of the Restructuring Resolution and approval of
Plan and on any other resolution placed before the Meeting
as the proxy holder may determine in its discretion. |
|
|
House of Commons |
|
 |
 |
|
10 April 2008
Larry Elford |
10 April 2008
Diane Urquhart |
10 April 2008
Wynne Miles |
|
The full video is available
HERE.
(wait a
minute or two for it to load fully) |
Transcript |
|
|
 |
|
30 April 2008
Canaccord made untrue
representations about ABCP. |
|
|
Canadian non-bank ABCP
losses take their toll |
04
August 2008 |
|
|
Canada's PSP Takes 23%
Writedown on ABCP Holdings |
22 July 2008 |
|
|
Time to clean
house, say bankers |
18 July 2008 |
|
|
Seven clients suing
Canaccord over ABCP |
09 July 2008 |
|
|
ABCP group
expected to move quickly |
03 July 2008 |
|
|
OSFI: 'Asleep at
switch,' ABCP critics say |
17 June 2008 |
|
|
Credit Ratings
Storm |
14 June 2008 |
|
|
The spaces in between |
09 June 2008 |
|
|
Canadian
Commercial Paper Noteholders to Appeal Plan Approval |
06 June
2008 |
|
|
Judge approves
ABCP deal |
05 June 2008 |
|
|
ABCP plan
expected to be approved |
04 June 2008 |
|
|
Family of
wealthy Montreal shoe merchant says it may be biggest victim of ABCP
crisis |
03 June 2008 |
|
|
ABCP backers
propose tight limits |
29 May 2008 |
|
|
Process for ABCP fraud claims unclear |
21 May 2008 |
|
|
Fraud immunity threatens to derail deal |
20 May 2008 |
|
|
ABCP
judge stands firm |
17 May 2008 |
|
|
IDA will lead
investigation into ABCP |
16 May 2008 |
|
|
An ABCP legal
conundrum |
16 May 2008 |
|
|
Change would let
regulators take action |
14 May 2008 |
|
|
Immunity at issue, ABCP judge warns |
13 May 2008 |
|
|
IDA investigating
members on ABCP |
13 May 2008 |
|
|
Flaherty wades into
Barrick's CIBC feud |
06 May 2008 |
|
|
It's ABCP with an American
accent |
06 May 2008 |
|
|
ABCP judge to delay ruling |
02 May 2008 |
|
|
ABCP mess highlights flaws |
01 May 2008 |
|
|
ABCP restructuring:
Razzle-dazzle |
01 May 2008 |
|
|
Will Canaccord executives
share the pain? |
29
April 2008 |
|
|
Canada Commercial Paper
Holders Face More Delays From Appeals |
28 April 2008 |
|
|
Going for Broke |
26 April 2008 |
|
|
Des investisseurs
mécontents de l’entente
Le projet Crawford adopté
|
25 April 2008 |
|
|
Canadian Investors Approve
C$32 Billion Debt Plan |
25 April 2008 |
|
|
Canadian judge promises
quick ruling on ABCP issues |
24 April 2008 |
|
|
Judge gives go-ahead to ABCP vote |
24 April 2008 |
|
|
Flaherty to Tighten
Regulation of Canadian Banks After Losses |
24
April 2008 |
|
|
Corporate investors urge
judge to protect their right to sue |
23
April 2008 |
|
|
Expert Panel on Securities Regulation in Canada Launches
Public Consultations |
23 April 2008 |
|
|
The judge in the ABCP
hotseat |
23
April 2008 |
|
|
Crawford optimistic ahead
of ABCP noteholder meeting |
22
April 2008 |
|
|
Legal wrangling intensifies
over asset-backed commercial paper restructuring |
22
April 2008 |
|
|
OSFI defends its role in
frozen paper mess |
22
April 2008 |
|
|
Small investors buy in as
big companies balk |
21
April 2008 |
|
|
ABCP rescue plan called
'unfair' |
21
April 2008 |
|
|
Credential offers to buy ABCP from 335 clients |
19 April 2008 |
|
|
Barrick intent on suing
CIBC over ABCP |
18
April 2008 |
|
In July, as concern grew in markets about subprime, Mr.
Mavor said Barrick asked CIBC about exposure, and was told
there was none. As a result, he said Barrick on July 26
bought $33-million more of paper. |
|
|
Credential Securities finalizes solution to repurchase ABCP
investments |
18
April 2008 |
|
|
OSFI
tiptoes around elephant |
18 April 2008 |
|
|
Small investors wary over Canaccord strategy |
18
April 2008 |
|
|
Canadian banks: Beware grannies on Facebook |
17
April 2008 |
|
|
Canaccord Capital Inc. Announces Final Details Of Canaccord
Relief Program |
17
April 2008 |
|
|
The
ABCP crisis: Canadians want answers |
17 April 2008 |
|
|
National Bank Refutes Allegations Made by a Group of
Investors About ABCP |
16 April 2008 |
|
"...the
Crawford Committee was created specifically to avoid the
flood of actions that could result in long legal disputes
and a disorderly liquidation of investments." |
|
|
Judge extends protection
for ABCP through May |
15
April 2008 |
|
|
Frozen funds relief may be near |
15
April 2008 |
|
Stephen
Halperin, a securities lawyer at Goodmans LLP who is
advising the committee, said the vote could technically be
delayed for up to 30 days without court approval.
"And
that is under consideration. No decisions have been made. As
of now we're still planning to go forward with the April 25
date," he said. |
|
Mr.
Sternberg noted that if the restructuring plan for the ABCP
sector passes, Mr. Bloom's lawsuit against National Bank
would fall by the wayside because of blanket legal releases
the plan grants to all of the major players who created or
sold ABCP.
...
“We are
rapidly running into a position where the relief that you
are seeking...is going to go past the vote time,” Justice
Campbell said.
Mr. Sternberg's request to reclassify investors “would
fundamentally change a plan that's been worked on for six
months,” the judge said.
“I'm very reluctant to see the court have to get involved,”
he added.
“Maybe you better go back and look at the consequences if
this plan fails,” he told Mr. Sternberg.
“It is absolutely essential for thousands of Canadians that
we get this plan done.”
...
“ The
courtroom, sooner or later, becomes the image of the judge.
It will rise
or fall to the level of the judge who presides over it…"
Simon Rifkind, retired
American Federal Judge
(as reported in the New
Yorker, May 23, 1983, at p. 63)
Lord, have
mercy. |
|
|
Firms balk at banks'
immunity |
15
April 2008 |
|
When a corporate holder challenged Mr. Crawford during an
investor conference call yesterday he urged investors to
seek redress from the banks that sold their paper, not from
the committee seeking to fix the problem.
As per the NOTICE OF PROCEEDINGS AND MEETING AND
INFORMATION STATEMENT
"...the
Schedule I Canadian banks further require...as a
condition of the compromises and contributions they are
making, assurance that no claims will remain following
implementation of the Plan that could lead to claims against
them for contribution and indemnity."
Go figure. |
|
|
A broken system |
14
April 2008 |
|
|
Legal action still possible if ABCP deal approved: Crawford |
14
April 2008 |
|
|
Credential ABCP buyout
likely this week |
14
April 2008 |
|
|
Credential's ABCP relief
plan expected this week |
14
April 2008 |
|
|
Regulators share blame for
ABCP collapse, Flaherty says |
12
April 2008 |
|
|
Finanzkrise in Kanada: Schweinezüchter bezwingt Banken |
11
April 2008 |
|
|
Flaherty points finger at provincial regulators |
11
April 2008 |
|
|
Investors demand more from
Canaccord |
11
April 2008 |
|
"We will not be happy until all the other individual noteholders
get paid too," said Wynn Miles |
|
|
Canadian ABCP Investors Say
Regulators, Financial Industry Failed Them |
10
April 2008 |
|
|
Ottawa looks to boost
securities regulation |
10
April 2008 |
|
|
Canadian Investors Push to
Delay C$32 Billion Vote |
10
April 2008 |
|
|
‘Duped' retail investors
want Ottawa to step in |
10
April 2008 |
|
|
ABCP investors say they
were duped, defrauded by financial community |
10
April 2008 |
|
|
Canaccord Capital offers
complete refund |
10 April 2008 |
|
|
ABCP bailout angers larger
investors |
10
April 2008 |
|
|
Passionate responses from
commercial paper investors |
09
April 2008 |
|
|
Credential Considers
'Relief Plan' for Its Clients |
08
April 2008 |
|
|
Small investors cast big
vote in Canada |
08
April 2008 |
|
|
Dealers work on ABCP relief
as clock ticks on |
08
April 2008 |
|
|
Canadian legislators to hear ABCP complaints |
08
April 2008 |
|
|
OSFI on ABCP Hook? |
08
April 2008 |
|
|
Advisors need more rigorous
licensing |
08
April 2008 |
|
|
Canadian watchdogs probe
ABCP complaints |
08
April 2008 |
|
|
Watchdogs flooded with ABCP
woes |
08
April 2008 |
|
|
What happened to the ABCP
billions? |
07
April 2008 |
|
|
Canadian brokerage watchdog probes ABCP complaints |
07
April 2008 |
|
|
The ABCs of asset-backed
commercial paper |
07
April 2008 |
|
|
Little guy blameless in this mess |
06
April 2008 |
|
What is
needed is for those responsible, those who packaged the ABCP
notes, those who rated the paper as AAA, and those who sold
the paper to individual investors, all to take
responsibility for their greed, their lack of transparency
and their mistakes. And along with these one should also
include the regulators who allowed these questionable
securities to be sold to individual investors. |
|
|
Who is to blame? |
05
April 2008 |
|
|
Brokers backed ABCP |
05
April 2008 |
|
|
Kept in the dark on crisis,
union says |
05
April 2008 |
|
|
The small guy cracks the
ABCP whip |
04
April 2008 |
|
|
Small ABCP investors aim to sell vote |
04
April 2008 |
|
|
OBSI News: Advisory to ABCP
Investors |
04
April 2008 |
|
|
Caisse faces demands to
lead bailout |
04
April 2008 |
|
|
Investors get 'creative' |
04
April 2008 |
|
|
ABCP: Top them up |
03
April 2008 |
|
|
Investors seek U.S. bidders
for their piece of "$30 billion carcass" |
03
April 2008 |
|
|
Canadian Debt Holders May
Sell Votes, Firm Says |
03
April 2008 |
|
|
ABCP investors to sell
votes to highest bidder |
03
April 2008 |
|
|
ABCP holders told they're
welcome to invite vultures |
03
April 2008 |
|
|
ABCP holders threaten to
call in vultures |
03
April 2008 |
|
|
ABCP investors seek
alternate bids |
03
April 2008 |
|
|
Juroviesky and Ricci announces an initiative to enhance
Retail ABCP Noteholder Value |
03
April 2008 |
|
|
Crawford faces fresh front
in ABCP revolt |
03
April 2008 |
|
|
Investors not impressed
with ABCP proposal |
03 April 2008 |
|
|
Crawford tries to reassure
angry commercial paper investors |
03
April 2008 |
|
|
Angry investors risk losing
their savings |
03
April 2008 |
|
|
ABCP road show hits brick
wall |
03
April 2008 |
|
|
Top-up plan seen for ABCP
investors |
02
April 2008 |
|
|
'Sunshine over the hill'
for ABCP investors: Purdy |
02
April 2008 |
|
|
ABCP committee faces most
vocal crowd yet |
02
April 2008 |
|
|
Main Street battles Bay
Street in $32-billion securities battle |
02 April 2008 |
|
|
Small investors have hammer
in ABCP crisis |
02
April 2008 |
|
|
Individuals hold
$32-billion deal in their hands |
02
April 2008 |
|
|
Investors deserve
protection from subpar 'products' |
02
April 2008 |
|
|
Disgruntled investors
confront committee |
02
April 2008 |
|
|
Canada's small asset-backed
investors take on big banks |
01
April 2008 |
|
|
ABCP investors didn’t see
pain coming |
01
April 2008 |
|
|
Investors caught in
commercial-debt crisis
The bulky information tome
alone is annoying, Crawford
agreed in an interview. "If
I'd been in their position
and somebody gave it to me,
I'd probably throw it across
the room and say the hell
with this." |
01
April 2008 |
The bulky information tome
alone is annoying, Crawford
agreed in an interview. "If
I'd been in their position
and somebody gave it to me,
I'd probably throw it across
the room and say the hell
with this."
|
|
|
Huh? ABCP a real head
scratcher |
01
April 2008 |
|
|
Canaccord can't afford to
buy out ABCP clients |
31
March 2008 |
|
|
How much will ABCP rescue
cost Canaccord? |
31
March 2008 |
|
|
Crawford feels investors'
anger |
31
March 2008 |
|
|
Investors angered by ABCP
plan |
31
March 2008 |
|
|
MP agrees to delay hearings
into ABCP crisis |
31
March 2008 |
|
|
Credit crunch spotlight
turns to regulation |
31
March 2008 |
|
|
Canada's ABCP group grilled
over fix-it proposal |
31
March 2008 |
|
|
Liberals to forgo seeking
Finance hearings on ABCP |
31
March 2008 |
|
|
Faces of the ABCP crisis |
31
March 2008 |
|
|
Retail investors' day will
come |
31
March 2008 |
|
|
ABCP buyback too big for
broker |
31
March 2008 |
|
|
Financial advice
not always the best asset |
30
March 2008 |
|
|
Paper Tiger? |
14
April 2008 |
|
|
ABCP investors get new
lifeline |
29
March 2008 |
|
|
Public firms
struggle to estimate value of ABCP holdings
|
March 2008 |
|
It’s not known how many individual investors hold ABCP, but Ching
estimates that there are hundreds. At least two dozen Canaccord
Capital Inc. clients have complained about their ABCP holdings, and
a lawsuit has been filed against the Vancouver-based brokerage firm. Canaccord, which has written down its own ABCP holdings by 20%, has said
its clients hold about $269 million in third-party ABCP. |
|
|
Dig in your heels |
28
March 2008 |
|
|
Commons finance committee
to vote on ABCP hearings |
28
March 2008 |
|
|
Crawford warns of investor
losses: Hints at Sweetener |
28
March 2008 |
|
|
Canaccord Leads Talks to
Create New Debt Market, Globe Says |
28
March 2008 |
|
|
ABCP retail investors need
rescue deal: Crawford |
27
March 2008 |
|
|
Canadian ABCP investors
bullied |
27
March 2008 |
|
|
Some Canadian investors
want ABCP money now |
26
March 2008 |
|
|
Burned investors willing to
work with committee |
26
March 2008 |
|
|
ABCP team 'ready to make
deal' with retail investors |
26
March 2008 |
|
|
Head of Canada ABCP plan to
woo retail investors |
26
March 2008 |
|
|
Crawford Will 'Make a Deal'
With Debt Holders |
26
March 2008 |
|
|
ABCP panel
focusing on retail investors: Crawford |
26
March 2008 |
|
|
Small investors in ABCP
retain legal advice from class action specialists |
26
March 2008 |
|
|
Juroviesky and Ricci LLP is retained by retail ABCP
purchasers |
26
March 2008 |
|
|
The
mother of all blanket immunity deals |
25
March 2008 |
|
|
Small investors control fate of ABCP market |
25
March 2008 |
|
|
Investors pin hopes on a vote |
25
March 2008 |
|
"You
don't rustle our cattle and think you can get away with it,"
he vows in a telephone interview. "They have just ignored us
like an ant they want to squash. But it looks like (the
voting process) gives us the power to stop (the deal) if
they don't deal with us." |
|
|
Frozen paper has
lost 40% of its value: RBC |
24
March 2008 |
|
|
Retail investors
prove leery of Crawford's ABCP rescue plan |
24
March 2008 |
|
|
Credit union's position
worries investor |
22
March 2008 |
|
|
Small noteholder stokes revolt against ABCP deal |
20
March 2008 |
|
|
Investors face a Catch-22 |
20
March 2008 |
|
|
Canadian Hog Farmers,
Pastors May Block C$32 Billion Debt Plan |
20
March 2008 |
|
|
Options dwindle
for burned investors |
19
March 2008 |
|
|
Highs 'n' lows |
19
March 2008 |
|
|
Retail investors' hold key |
18
March 2008 |
|
|
ABCP deal cold comfort for
retail investors |
18
March 2008 |
|
Just as
progress was being made on an agreement to
restructure asset-backed commercial paper,
there is a growing awareness of a number of
individual retail investors — roughly 1,600
— who have been burned by the liquidity
crisis.
These
investors are faced with a stark choice:
either take the deal and give up their right
to sue for full restitution or go after
those they feel have wronged them, risking a
total loss.
"I went
ballistic when I saw the part about the
legal release," said a small investor based
in Toronto. "I couldn't believe they would
let these guys off the hook." |
|
|
Small investors get equal
voting rights in ABCP restructuring, committee says |
17
March 2008 |
|
|
ABCP committee files for
protection under CCAA |
17
March 2008 |
|
|
Small investors get equal
voting rights in ABCP restructuring, committee says
|
17
March 2008 |
|
|
Court protection sets stage
for new debt fight |
17
March 2008 |
|
|
ABCP investors face new
hurdle |
17
March 2008 |
|
“Some investors
believe they have rights to sue parties
on account of their losses,” and that
the releases would take those rights
away, Mr. Crawford said in an affidavit
filed in court yesterday. “Some have
told me they support the financial
aspects of the plan, but do not wish to
release the parties they believe should
be held responsible to them for their
losses."
“I understand these views. However,
negotiation of the plan has been the art
of the possible,” he said, explaining
that some key players in the
restructuring said they wouldn't
participate without the releases. |
|
|
MP
rallying support for asset-backed loans probe |
15
March 2008 |
|
|
Liberals demand review of ABCP crisis |
14
March 2008 |
|
|
Monetary buck-passing |
14
March 2008 |
|
|
Little hope seen for deal
on ABCP by deadline |
14
March 2008 |
|
|
Holders will get to vote on plan, BoC chief says |
14
March 2008 |
|
|
Couple calls for action
over ABCP trading freeze |
14
March 2008 |
|
|
Carney backs ABCP rescue effort |
13
March 2008 |
|
|
Should we pay for bankers'
folly? |
13
March 2008 |
|
|
Players in ABCP drama agree
on terms |
13
March 2008 |
|
|
Scotiabank Q1 'weaker than
expected,' profit down 18 per cent to $835M |
05
March 2008 |
|
|
Scotiabank Grilled Over ABCP |
05
March 2008 |
|
|
Not
really prime time |
05
March 2008 |
|
|
Burned investor
confronts CEO |
05 March 2008 |
|
|
Facebook helps rally dissent over ABCP losses |
04 March 2008 |
|
|
Uncertainty gathers over ABCP fix |
03 March 2008 |
|
|
Curious optics:
Purdy Crawford |
21 February
2008 |
|
|
Engineer rallies
ABCP investors on Facebook |
20 February 2008 |
|
|
ABCP
restructuring will happen 'one way or another': Purdy
Crawford |
17
December 2007 |
The
proposal, which has yet to be fully
mapped out, must be approved by at least
66% of noteholders in each of 21 frozen
trusts for the restructuring to go
ahead. But if some trusts fail to win
the required support, those investors
"would be on their own," Purdy Crawford
said in an interview.
|
|
|
Another Made-in-Canada Defective Investment Product |
17
December 2007 |
|
|
Here's hoping report clears up financial quagmire |
09
December 2007 |
|
|
The ABCP black box explodes |
16
November 2007 |
|
|
