http://affordablehousinginstitute.org/blogs/us/2008/11/the-montreal-express-part-1-the-power-of-the-group.html Affordable Housing Institue Mon, 22 Feb 2010 01:10:03 -0700 http://wordpress.org/?v=2.8.6 hourly 1 http://affordablehousinginstitute.org/blogs/us/2008/11/the-montreal-express-part-1-the-power-of-the-group.html/comment-page-1#comment-15757 Jill O'Hara Wed, 12 Nov 2008 23:39:41 +0000 http://affordablehousinginstitute.org/blogs/us/2008/11/the-montreal-express-part-1-the-power-of-the-group.html#comment-15757 One small problem - the Canadian restructuring has not yet completed. The latest in a series of missed deadlines is November 28/08. It is highly touted by the Committee that it will take place. It is equally highly believed by the investors that it won't. In the US, your government stepped in and forced banks to buy back tainted auction rate securities at par. The Canadian government has done nothing, despite a report from the industry regulators that clearly states that banks and brokerages were negligent in selling ABCP to Canadian retail investors. Our regulators have not, in fact, played ball. They have steadfastly held that they are not at all responsible for the ABCP debacle, which is clearly not the case. Only one rating agency rated the stuff, and that was AAA or R1 High - their best rating. Again, the investment regulators now say the rating process was flawed. So we have several smoking guns, and no regulatory or governmental body with the will or mandate to force restitution. Be glad you're not Canadian! One small problem – the Canadian restructuring has not yet completed. The latest in a series of missed deadlines is November 28/08. It is highly touted by the Committee that it will take place. It is equally highly believed by the investors that it won’t. In the US, your government stepped in and forced banks to buy back tainted auction rate securities at par. The Canadian government has done nothing, despite a report from the industry regulators that clearly states that banks and brokerages were negligent in selling ABCP to Canadian retail investors. Our regulators have not, in fact, played ball. They have steadfastly held that they are not at all responsible for the ABCP debacle, which is clearly not the case. Only one rating agency rated the stuff, and that was AAA or R1 High – their best rating. Again, the investment regulators now say the rating process was flawed. So we have several smoking guns, and no regulatory or governmental body with the will or mandate to force restitution. Be glad you’re not Canadian!

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