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Investors back ABCP plan; one obstacle remains

BOYD ERMAN

Globe and Mail Update

Latest comment posted at 6:30 PM EDT 27/04/08

Judge to hear challenge from large noteholders contesting legal immunity granted to creators and sellers of commercial paper ...Read the full article

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  1. Jon Stone from Canada writes: Now I know what is like to live in a Banana Republic. Elections are rigged and won through vote buying. The big banks should be proud- like the CIA, they have triumphed again.

    The question is - At what cost?
  2. The Middle Finger ..I.. from Canada writes: Should I care about this?
  3. Rosehill Avenue from Toronto, Canada writes: The Middle Finger ..I.. from Canada writes: Should I care about this?
    ------------------------------

    IF ur not invested in any ABCP then this doesnt matter much other than a firm reminder to remain diversified. Of course if u are in ABCP, then yes, this is a pretty big deal, as some people have a sizeable amount of their portfolio invested in this paper and if they need to get at their money any time soon, they might be up the creek sans paddle. Good luck to them
  4. reveal the real from Canada writes: Bully elitists make Canada a sophisticated Zimbabwe. This process has turned into a huge misjustice.Change the rules to save an accountability necessity.Shame! I feel very ill.
  5. bill k from Canada writes: Good old American and Canadian Capitalism where the rich get bailed out for their stupidity and greed. Capitalism is socialism for the rich. It's to bad the working class/poor are to stupid and brainwashed by the idiot box to figure this out.
  6. mitchell roy from calgary, Canada writes: Hi there:

    From the comments on here, shows why this country will always be a back water country and a second rate economic power.

    -M-
  7. Winston Smith from Canada writes: Why am I not surprised by this? Big banks always get to rob Canadians blind with judicial immunity.
  8. George Stefanapolous from Canada writes: Then you got the CEO of National Bank of Canada who attended the DAFFODIL BALL at the Windsor Station Ballroom at $5000 a plate. Yet corporate clients like Jean Coutu, Air Transat, Domtar are getting "schlepped over".

    The CEO of National earned $3.9 million in 2007 when National bank did its worst year since1992. It is nice to belong to a group of Illuminati of the board of directors. Oh by the way, the National paid $10k for both Louis Vachon and his wife. The cost of this is gonna be paid by the corporate clients who are stuck with long term notes. C'est la vie.
  9. The Oracle from Caiman Islands, Canada writes: I'm really left wondering was anything learned here?
  10. George Stefanapolous from Canada writes: banks are bullies!
  11. Yves Farges from Vancouver, Canada writes: So they pushed the problem into the future in a classic refinance exercise. At least it will allow the capital to be recovered, which is a good thing.

    Unfortunately, the lesson of risk avoidance is best learned by a sharp loss, so risky investments will creep back into financial institutions sooner of later because they have once again dodged the bullet.
  12. ken g from Canadian in Mexico City, Canada writes: Financial institutions misled investors. Isn't this fraud? Shouldn't these institutions be accountable?
  13. George Stefanapolous from Canada writes: This is a typical refinancing scheme which will explode in 9 years, in the meantime, the bank CEO's will keep on collecting multi-million salaries. Ask Louis Vachon, CEO of National Bank, he loves this setup cause in 9 years he'll be $100 million richer and in the Cayman islands. Suckers!!!!!
  14. George Stefanapolous from Canada writes: Louis Vachon pretends he could save the clients of National bank from the burden of the ABCP situation, but this guy couldn't save a dead horse, only Jesus can do that. In this scam, people better start praying to Jesus cause things are gonna get uglier!
  15. Donna Smith from Canada writes: I happy that the little guys got bought out. The little guys would have taken the deal down if given the opportunity. No one wanted to pull the pin on the massive amount of derivative leverage wound into this deal. As for the new 9 year notes. These notes are worthless or perhaps maybe 10 cents to the dollar. The big smart money players look dumb now, bowing to their Wall Street masters.
  16. joker999 joke from calgary, Canada writes: Talking about Vachon........don't forget he had $2.4 million in ABCP...but the National Bank bought his position from him, 5 directors and 48 insiders..............no trouble sleeping at nights for them...they got their money out
  17. bob london from Canada writes: Are the banks remaining completely unaccountable but pampered. You would figure a 200 year old baby could take off its diapers and not need the government Nanny.

    Oops, forgot, its headquartered in Ontario
  18. Jim Sontag from The Hague, Netherlands writes: Many of the comments here leave me shaking my head too.

    This vote was fair, the little guys won and a couple of the big players had to own up to their responsibilities. This is nothing like Zimbawbawe, not even close.

    Leo Vachon and National don't get a fair shake here. They took the high road and made most of their small investors whole last year.

    But the other Big Banks and Julie Dickson of the OSFI deserved to get slammed here. This is a made in Canada mess, everyone is pointing fingers, no one is accepting responsibility, and everyone who is responsible seems more focused on getting the right-to-sue waiver signed.

    Someone else suggested Canada will remain an economic backwater if things like this keep happening. I agree.

    I hope things change now.
  19. J Lee from Canada writes: This deal isn't done yet. There are lots of legal arguments and decisions still to be made, and the judge even acknowledged that. The key one being whether it is acceptable to strip investors of their right to sue. The little investors got paid out as a bribe so they lose nothing, while the bigger investor loses the right to argue that they have been scammed, defrauded and sold a bill of goods by the banks and brokerages. Sounds like a superb deal for the slime that wears blue suits on Bay street. Crawford and the boys who put it together are just part of the club. If you didn't know how the club worked before, here is an example of how it really works. You might be surprised how much leverage they have in the legal system too. Let's watch...
  20. George Stefanapolous from Canada writes: It is not over yet as the judge must sanction the whole deal next friday. The Judge is also allowing arguements to be discussed by the corporate clients. Anything can happen, even the rejection of the deal for approval by the judge if he believes the corporate arguements are valid. A decision might be to rewrite the legal aspects concerning the corporate clients. Some banks (foreign) will thus pull out of the agreement and.......BOOM! The whole thing blows apart! Ciao bambino.

    That is why i suggest that the execs at National bank wear ATTENDS diapers since the biggest mob of corporate clients are from National bank.

    I can see Louis Vachon, CEO of National bank "tire marking" his ATTENDS diapers with "Hershey squirts"! LOL
  21. Wilma De Bruyn from Toronto, Canada writes: #
    mitchell roy from calgary, Canada writes: Hi there:

    From the comments on here, shows why this country will always be a back water country and a second rate economic power.

    -M-

    * Posted 25/04/08 at 4:34 PM EDT | Alert an Editor | Link to Comment
    That is why us of a is a Corporation and only around the White House
    it's a country. (The Biggest Secret by David Icke). And Canada and
    us of a is both under British Rule. Rule by Secrecy by Jim Marrs.
    It's a joke.
    Any ways and means to entice investors to lose more money and life savings for the ultimate of more control. That's the bottom line.
    And their doing a dam good job of it too!
  22. reveal the real from Canada writes: I hope your right by George and Martha! Fabricated law brings no justice and accountability. Another Bre-x fiasco where no one was accountable and the regulators got richer,the stock exchange went public, the tech wreck was forgotton and now the mining scams of this cycle will get away scot free. A new book must be written 'The Gangs of the Capital markets" and how they influence everyone who has unilateral power to get their way! All who collaborate are traitors and make a mockery of our Democracy in Canada.
  23. Yvonne Wackernagel from Woodville, Canada writes: They went in with their eyes wide open. They just HOPED that things would continue to be! Well, they lost the gamble. Sorry!
  24. reveal the real from Canada writes: There was no gamble Yvonne!Just a misrepresentation of the investment instruments that were sold as market money fund security. I am sure if you got sucker punched it would bother you more. One needs to keep one's head up in this present day Canada or they will be the next victim! I wish it were different for the sake of all who spilled blood in the past for Canada to protect our democracy. Mostly ww1and ww2 vets. They have been disgraced by greedy bi-polar baby boomers who are predominately hypocrites!
  25. Marian Olson from Canada writes: Should I care? Lots of "little people" have been ensnared here, thanks to all the careless financial advisers who place their client's funds in short term paper. I was lucky, but many weren't. Let's not invoke the evils of capitalism argument yet again, with the poor workers getting the shaft, etc. They are not involved. The scandal, which will be swept under the rug as usual in this country, is the incompetence and double-dealing at the Dominion Bond Rating Service, which happily applied a triple AAA to this junk, and those smug nitwits at OFI who chose not to get involved. That assumes, of course, that they had a bit of a clue that something was amiss. The fact that no other rating agency would touch this stuff should have told them something. The real victims - surprise, surprise to all those conspiracy freaks - are the more affluent investors and the corporations. Imagine being abused to the tune of millions and potentially losing one's right to legal remedy as well. Yep, sounds like Zimbabwe all right.
  26. reveal the real from Canada writes: Good for you Marian Olson. Rise up canadians and start implementing real justice! Demand it.
  27. dave moxley from markham, writes: Let's not over react--The only victims are the Corp Treasuries that bought this sh$#...not Canada, democracy nor capitalism.
    A group of CFO's and thier staff had direct access to numerous advisors, rating agencies, consultants, experts and confidential reports. They had all the facts (or should have) and made a decision that the extra interest juice was worth the risk premium--they were simply wrong...sorry...that is how capitalism works!
  28. reveal the real from Canada writes: Good capitalism does not allow the rigging of deals,rules and lack of accountabilty that we do here in Canada. Our capital markets are full of idiots who only make money because they are associated with the inside people and knowledge that gives them a cheaters advantage. We have gangs of credentialed people hooked up with international off shore players who are still domicile canadians in our Capital markets. We have the top ecelon of the RCMP breaching House of Commons rules and nothing being done to penalize her for the hypocracy.It been going on so..long. Conrad Black was never investigated here in Canada and ran around with all the Bay street elitists before the SEC nailed him. ABCP is just one of so many misdeeds that has puppeteering galore and no accountability. Most people just forget and thet what all these elitists bank on.

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