ABCP Burned Investors
CBC News WorldTuesday, March 11, 2008
There are no guarantees, they're not guaranteeing anything…
Given the situation that banks are in, I think they are actually looking for ways to get out of this financing if they can.
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Canaccord and other ABCP Clients
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Canaccord and other ABCP Clients
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headline story or media link.
Finally, some attention…
Sunday, March 16, 2008
There has been an explosion of news in recent days on the ABCP issue, at least compared to what we are used to.
Another deadline was missed by the committee, but they have promised to file something in court on Monday. In essence, it's a bankruptcy proceeding.
They are proposing to swap the short term notes, most of which have matured at least 5 months ago, into long term notes that will mature in 8 years. After fees are deducted, noteholders may get all their principal back.
The Big Banks provide a credit facility. It is not a guarantee, but a way of limiting their losses. One of the reasons that there is no deal do date is that some of Canada's Banks have been reluctant to sign on.
We have also got the attention of the federal politicians. The Federal Finance Committee appears set to hold at least 12 hours of hearings on the ABCP crisis and intends to hear from 'severely affected Canadians'.
All stories here come from only a few sources, and most of them are in Toronto. The print media include the The National Post, the Toronto Star, and the Globe and Mail. We thank them for their coverage.
The stories here are from people across the country; in Calgary, Victoria, and Edmonton to name a few places. We find it rather sad that the media in these cities continue to ignore the horrible injustice being served on members of this group by the Pan-Canadian committee.
CBC News WorldTuesday, March 11, 2008
ABCP Horror Stories
Business News Network - March 7, 2008
Here are some of the stories of some individuals caught up in this ABCP mess.
More media links can be found at
InvestorVoice.ca
MP rallying support for asset-backed loans probe
Liberal wants voice for consumers hurt by crisis
Rita Trichur, Toronto Star - Mar 15, 2008 http://www.thestar.com/Business/article/346340
NDP's Thomas Mulcair. "These people, a lot of them are losing everything. And so we're going to try to get to the bottom of it," he said. "A lot of the individuals, they didn't even know their (money) was being put into these vehicles."
ABCP players to seek bankruptcy protection
TARA PERKINS, Globe and Mail - March 15, 2008 http://www.reportonbusiness.com/servlet/story/RTGAM.20080315.wabcp15/BNStory/Business/home
While the committee had hoped that those who hold the long-term notes until they expire would receive most of their value back, it's believed that investors who need to sell the paper quickly once the market's unfrozen could lose one-third or more.
Liberals demand review of ABCP crisis
Duncan Mavin, Financial Post - March 14, 2008 http://www.financialpost.com/story.html?id=375981
Liberal finance critic John McCallum has filed a notice of motion that proposes to give retail investors in Canada's asset backed commercial paper market the chance to have their complaints heard in Ottawa.
Investors' Group Misses Canadian Debt-Plan Deadline
Bloomberg.com - March 14, 2008 http://www.bloomberg.com/apps/news?pid=20601082&sid=aEwmoTZvxjYU&refer=canada
That standstill agreement has been extended today, the fifth time since October.
ABCP committee to file under CCAA Monday
Jim Middlemiss and Duncan Mavin, Financial Post - March 14, 2008http://www.financialpost.com/creditcrunch/story.html?id=376311
The players negotiating the restructuring of the non-bank asset-backed commercial paper market said they expect to file what would amount to the biggest insolvency filing in Canadian history on Monday.
Couple calls for action over ABCP trading freeze
Rita Trichur - Toronto Star March 14, 2008
http://www.thestar.com/Business/article/345936
Mr. Crawford has indicated that the restructured ABCP is expected to be significantly discounted from the price we paid for it. My husband and I are self-employed, and we have a substantial portion of our retirement savings frozen as ABCP
Little hope seen for deal on ABCP by deadline
March 14, 2008 - Globe and Mail - Report on Business
http://www.theglobeandmail.com/servlet/story/LAC.20080314.RABCP14/TPStory/Business
A standstill agreement that has kept peace in the market and prevented the potential collapse of the restructuring expires at midnight, and sources close to the so-called Crawford Committee say there is almost no way to get consent from all parties to push back the timeline again.
Canadian Bank Fire Sale
Forbes.com, The Canada Report. March 14, 2008 http://www.forbes.com/finance/2008/03/14/scotia-banks-canada-pf-ii-in_gg_0314soapbox_inl.html
The principal problem the banks have faced in Canada has been what to do with the excess cash they generate.
Facebook helps rally dissent over ABCP losses
National Post - March 4, 2008
http://www.nationalpost.com/todays_paper/story.html?id=350901
Canaccord has disclosed it has $269-million in exposure to ABCP, which is believed to be spread among 1,400 investors.
ABCP jam close to resolution
Financial Post - March 13, 2008
http://www.financialpost.com/creditcrunch/story.html?id=370996
…the brain trust tasked with restructuring the notes will file papers this week in an Ontario court, seeking a judge's approval to implement the restructuring package agreed to in late December.
It also could mark the only successful workout of such distressed paper anywhere in the world.
The brain trust looks set to propose the 64¢ solution that has been discussed. If they do, then the brain trust need to be advised that almost all of us have graduated from high school. We are not that stupid.
Burned investor confronts CEO (at ScotiaBank Annual General Meeting)
The Edmonton Journal - March 5, 2008
http://www.canada.com/edmontonjournal/news/business/story.html?id=40b13ed6-fb37-4e7e-baba-0ce36fb2a645
Most of us were shocked when our cash was not there to buy our houses or our businesses or to care for our loved ones, or to pay simply for living expenses.
Carney backs ABCP rescue effort
Freeze on commerical paper market avoided fire sale
Jacqueline Thorpe, Financial Post - March 13, 2008
http://www.financialpost.com/creditcrunch/story.html?id=373210
Mark Carney, governor of the Bank of Canada…
"The participants in this process ... Canadian banks, in particular, and the global bank have made serious efforts to find a compromise solution," he said. "That's what you get in the market; you get a compromise between various parties."
BMO woes with ABCP cast pall over market
Financial Post - Wednesday, March 5, 2008
Sources said the banks that own the flawed ABCP trusts may be buying the notes back from investors as a way to shore up their own reputations. For instance, BMO has indicated it owns a major chunk of the Apex and Sitka notes. The source said it recently repurchased the notes.
Uncertainty builds over ABCP fix
National Post/Financial Post - March 3, 2008
http://www.financialpost.com/story.html?id=349997
Meanwhile, Purdy Crawford, the Bay Street lawyer heading up the investors committee, has predicted that the new restructured notes investors would receive in exchange for their ABCP will likely trade "at a significant discount to par.
Standstill on Third-Party ABCP Remains in Effect
Canada News Wire (CNW Group) - TORONTO, Feb. 29, 2008
http://www.newswire.ca/en/releases/archive/February2008/29/c7845.html
details of the approval process will be made available before March 14, 2008.
As a result, a meeting of noteholders is expected to occur in mid-April, with a closing toward the end of April 2008.
…most noteholders can expect to receive full principal repayment if they hold the new restructured notes to maturity…
Credit crisis 'made in Canada' - Lax Rules Blamed
Financial Post - September 27, 2007
http://www.financialpost.com/story.html?k=63868&id=3f92dc01-2dce-41a1-8035-358121a6725a
“It's a made-in-Canada problem,” said Claude Lamoureux, head of Ontario Teachers' Pension Plan. Many people in the market “didn't know or didn't ask questions” because they were making more profits than elsewhere, he added.
Unscrambling the eggs
Asset Backed Commercial PaperThe Economist - September 13, 2007
http://www.economist.com/finance/displaystory.cfm?story_id=9804551
He (David Dodge, former Govenor of the Bank of Canada) acknowledged that the Bank of Canada may itself have played a role in stoking the excesses by not raising interest rates enough. “One can see in retrospect that we should have been driving those rates harder than we did, because in reality credit conditions were being eased by increased securitisation and movement of stuff off balance [sheet],” he says.
That is an admission that most officials would make only when they are safely in retirement.
National Bank defends actions on ABCP from shareholder attacks
Ross Marowits, THE CANADIAN PRESS - February 29, 2008
http://finance.sympatico.msn.ca/investing/news/businessnews/article.aspx?cp-documentid=6370316
President and CEO Louis Vachon took responsibility for the bank's volatile share price and weakened financial performance in 2007, but said he doesn't regret decisions made last August to help small investors.
It purchased the holdings of 250,000 small and commercial holders for $2.1 billion.
"I will suspect that hell will freeze over before I change my mind on that," he said at a news conference following the marathon meeting.
Canaccord names Scotia Capital in lawsuits
Reuters - Dec. 6, 2007
http://www.reuters.com/article/sphereNews/idUSN0625913520071206?sp=true&view=sphere
Canaccord Capital alleges that an investment banking division of the Bank of Nova Scotia was reducing its holdings in asset-backed commercial paper while it continued to promote the investment to clients, according to court documents on Thursday.