Media Mania

Diogenes's picture

Now the media coverage of ABCP retail investors has become a bit of a frenzy.

It has become hard to keep up with it all. Some respected (or at least widely syndicated) columnists have have even started to write columns and offer opinions on the topic.

There has been a remarkable twist to the story. Each noteholder has a vote on the bankruptcy. By most accounts, there are some 1400 retail noteholders that 'own' only $270 million of this paper, out of $33 billion that is frozen. Each of these noteholders has a vote. Most of this bad ABCP debt is held by big players in Canada's financial community. The retail investors outnumber the big guys 15:1.

Getty Images

Collectively, this means creditors that are owed less than 1% of the debt could scupper the $33 billion Pan-Canadian barge. The banks will not like this. The country's largest pension fund will not like this. Certain investment dealers across the country should look for a new line of work.

The barge would sink, and the members of the committee would have to demonstrate that they know how to swim.

Diane Francis

Diane Francis wrote a blog that later appeared as a column in the National Post. It rates amoung the best.

An estimated 1,500 individual and corporate retail investors have been left holding the bag on more than $900-million worth of junk credit they should never have been allowed to buy in the first place had Canada's regulators, laws and intermediaries done a proper job.

Terence Corcoran, the editor of the Financial Post, saw it in a different way. He claimed this Facebook group is actually 'a clever group of investors' … 'Exploiting that leverage (of the CCAA)' … 'to turn the ABCP sinkhole into a gold mine.'

With all due respect Mr. Corcoran, if your idea of a gold mine is breaking even on a 30 day deposit a year after it matures, and only after fighting like hell to accomplish that, then I will have to change my opinion on your opinions.

Most of the press coverage has been very supportive. The story is getting out there, and we are happy for it. We thank all of the journalists credited here. Here are some of the best from last 10 days.


news Faces of the ABCP crisis
John Greenwood And Grant Surridge
Financial Post
Monday, March 31, 2008
news How much will ABCP rescue cost Canaccord?
Andrew Willis
Gobe and Mail blog
March 31, 2008
news Canadian Debt Holders Will Get `Little' Without Plan (Update3)
Sean B. Pasternak
Bloomberg
March 31, 2008
news Liberals to forgo seeking Finance hearings on ABCP
Tara Perkins
Globe and Mail
March 31, 2008
news ABCP buyback too big for broker
Tara Perkins
Globe and Mail
March 31, 2008
news Little guy left holding the bag
Diane Francis
Financial Post
Saturday, March 29, 2008
news Crawford warns of investor losses
Hints At Sweetener
Duncan Mavin, Jim Middlemiss And John Greenwood
Financial Post, Friday, March 28, 2008
news Dig in your heels, and eventually the big banks will make everyone whole again
FABRICE TAYLOR
Globe and Mail - March 28, 2008
news Commons finance committee to vote on ABCP hearings
Duncan Mavin, Financial Post
Friday, March 28, 2008
news Canadian ABCP investors bullied
Diane Francis
Blog, National Post
March 27, 2008
news Crawford Will `Make a Deal' With Debt Holders
By Doug Alexander
Bloomberg, March 26, 2008
news Investors seek solace in Facebook
Sean Silcoff
Financial Post, March 26, 2008
news Canadian Group Urges Caisse to Buy Commercial Paper (Update1)
By Sean B. Pasternak
Bloomberg - March 24, 2008
news Credit union's position worries investor
No indemnity for lost investment made through Credential Securities
Fiona Anderson
Vancouver Sun, Saturday, March 22, 2008
news Canadian Hog Farmers, Pastors May Block Debt Plan (Update2)
By Doug Alexander and Sean B. Pasternak
Bloomberg, March 20, 2008
news Small noteholder stokes revolt against ABCP deal
John Greenwood
Financial Post, Thursday, March 20, 2008
news Investors face a Catch-22
Owners with frozen savings can lose money -- or spend money
BY FIONA ANDERSON, Vancouver Sun
Thursday, March 20, 2008

More media links can be found at: InvestorVoice.ca
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