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Montreal Accord deadline extended

JACQUIE MCNISH AND BOYD ERMAN

Globe and Mail Update

Latest comment posted at 6:41 PM EST 15/10/07

Backers of the Montreal Accord agree to extend restructuring of $40-billion of troubled asset backed commercial paper until mid-December ...Read the full article

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  1. Perfect Storm from Montreal, Canada writes: Bottom line on this is that there are going to be massive losses that need to be aborbed and I'm talking in a "realised" sense. The Fed cut by 50 bps and Libor rates are still at 6 month highs. You can't use liquidity tools to solve credit issues in the long run. These clowns can put off the date to whenever but shareholders will demand answers at some point.

    You play with fire, you get burned.
  2. Dye Looted from Canada writes: Oh, this is bad, really bad! This means the whole mess remains undischarged for months... meanwhile the sub-prime fiasco and stagnant or declining value of realestate assets continues to unfold. By that time the problem will just be so much bigger.
  3. globefan EH from Canada writes: So all these backers who showed such terrible judgement in how they loaned money are now backing up their bad judgement with what amounts to loan restructuring (guarantees) of 40 billion. Am I missing something other than heads should roll?

    Original backers of the accord include: ABN AMRO, Barclays Capital, Caisse de dépôt et placement du Québec, Desjardins Group, Deutsche Bank, HSBC, PSP Investments, Merrill Lynch, National Bank and UBS.
  4. Luke R from Toronto, Canada writes: Odd! When a bunch of greedy bankers make a bad, extremely risky decision based purely on greed they get a voluntary loan restructuring deal. When regular people can't pay their mortgage becuase they got disabled, lost their job, etc. they don't have their lenders calling them up to offer them a deal to tide them over. Hmm!
  5. Billiam Smith from Cairo, Canada writes: Luke R - That's right, we should just let these banks go under to teach them a lesson.

    I think that's called "cutting off your nose to spite your face". I don't expect anyone in the ABCP biz is getting a bonus this year (or a job next). Don't worry about punishing, let's just focus on keeping the economy working.
  6. Perfect Storm from Montreal, Canada writes: I think the Citigroup news is hilarious. They are underwater about 3 bio on this product and now they wanna team up with BOA and Chase to create an 80 bio fund to purchase the underlying assets that are in trouble. So not only will they own the crappy underlying trades, they will also own the crappy derivative trades attached to them. Yes, that's great use of shareholder capital. Worthy of its own Tetes -a- claques cartoon!
  7. George Stefanapolous from Canada writes: These banks are trying to figure out how to "pass the smelly dead fish" to some poor sucker. For example the National Bank is trying to figure out how to unload the $2 billion ABCP by converting it into long-term paper. It's too effing late, they should swallow the LOSS and admit fault rather than wiggle their way out of it because they will hurt someone else in the process.

    No matter which way you slice it, it turns out to be a disaster and they should own up to it as "Dr Phil" says. TOUGH, next time don't be so greedy. National Bank had these tainted ABCP in their Mutual Funds so they could generate & JUSTIFY their excessive management fees (the ABCP paid higher returns). TOUGH BANANAS!
  8. George Stefanapolous from Canada writes: How can you restructure something that is not viable or trustworthy to others (buyers) unless you plan to SCAM them. A "smoke screen" and a little "window dressing" with some pazzazz and voila!
  9. Jimmy Delf from Ottawa, Canada writes: George Stefanapolous from Canada writes: These banks are trying to figure out how to "pass the smelly dead fish" to some poor sucker. For example the National Bank is trying to figure out how to unload the $2 billion ABCP by converting it into long-term paper. It's too effing late, they should swallow the LOSS and admit fault rather than wiggle their way out of it because they will hurt someone else in the process.

    No matter which way you slice it, it turns out to be a disaster and they should own up to it as "Dr Phil" says. TOUGH, next time don't be so greedy. National Bank had these tainted ABCP in their Mutual Funds so they could generate & JUSTIFY their excessive management fees (the ABCP paid higher returns). TOUGH BANANAS!

    These National Bank bosses should be put in jail cause when they collect on bad debt, they do it without pity. With all the money they will lose because of their mistakes, bet ya, they'll even cry for a bonus. I instead would send them to Afghanistan to be explosive mine sweepers. Hopefully they'll never come back.
  10. Jimmy Delf from Ottawa, Canada writes: George Stefanapolous from Canada writes: " These banks are trying to figure out how to "pass the smelly dead fish" to some poor sucker. For example the National Bank is trying to figure out how to unload the $2 billion ABCP by converting it into long-term paper. It's too effing late, they should swallow the LOSS and admit fault rather than wiggle their way out of it because they will hurt someone else in the process. No matter which way you slice it, it turns out to be a disaster and they should own up to it as "Dr Phil" says. TOUGH, next time don't be so greedy. National Bank had these tainted ABCP in their Mutual Funds so they could generate & JUSTIFY their excessive management fees (the ABCP paid higher returns). TOUGH BANANAS!"

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    These National Bank bosses should be put in jail cause when they collect on bad debt, they do it without pity. With all the money they will lose because of their mistakes, bet ya, they'll even cry for a bonus. I instead would send them to Afghanistan to be explosive mine sweepers. Hopefully they'll never come back.

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