CGC Appointment

[bduke]

Elwin Hermanson has accepted the Chief Commissioner's position, as announced today by Minister Ritz. I have no knowledge of his perspective on KVD etc., but hopefully he will be progressive....Bill

[parsley]

Let's hope he does a better job than John Manley has done as a Director of CIBC where they are going to lose millions because of both an incompetent CEO and incompetent Directors.

Our country does not need more incompetent politicians overseeing our economy. Maybe Hermanson will be great, but guess who pays in the long run if he sucks?

Yup. Farmers.

Parsley

[parsley]

Clarification:

Manley is Director of Risk.

[bduke]

I think you gleaned your info from Fabrice Taylors'column in todays Globe and Mail. I notice there was no mention of ACA's downgrade from A to junk status on Wedneday (one review!).It seems in todays world of algorithms, synthetics, special investment vehicles, special purpose entities,collaterized debt obligations, etc., we are venturing into uncharted territory. There appears to be a great lack of knowledge and/or ability to predict how markets react to unpredicted events, hence large mark to market write downs. Parsley, you're extremely intelligent,could you write an algorithm to calculate the probability of bond insurers defaulting there covenants? The rating agencies need it, and so do investors.

[Kodiak]

Parsley, I think you need to go back to your corner.

1...2...3...4...5...

[parsley]

You have a valid point, and my apology was in your mailbox before you posted your last message.

I'm an armchair banker that forgot my multiplication tables, but derivitives/exponential effect should send shivers down the most devout mathematician's spine.

That was what rancoured, though. Lack of prudence with OP's cash.

Parsley

[Kodiak]

Parsley, I assume your acronym, “OP’s cash” means “other people’s cash.” CIBC may have been imprudent buying what now looks like unsecured debt, and they probably (it ain’t over till its over) didn’t hedge their exposure all that well. It remains to be seen how bad all this really is.

But so far, “other people’s cash” seems secure enough. We’re a long way from depositors taking a direct hit. And thankfully, competition should keep their interest returns adequate in a relative sense (relative to the choices they have as to where to deposit their funds).

Those taking a hit over this are the owners of the CIBC, who took a risk themselves. If you own CIBC shares, were you a prudent investor? Did you hedge your risk?

……hey. I need to slap my fingers. I’m way off topic here.

I think Elwin Hermanson will be a very good Chief Commissioner. He has lots of legislative experience, and that should help get the new Canada Grain Act through Parliament. It’s long over due, and the changes the new Act contain should make the CGC and the grain industry a lot more efficient. In addition, it will remove the silly perception that farmer’s business dealings are someone else’s responsibility, and sillier yet, that the CGC’s bonding system could actually protect them in all instances and for a reasonable cost. Kind of like hedging exposure to bad business deals with ACA. Turns out maybe it couldn’t be done.

…….hey. Maybe I wasn’t so off topic

[parsley]

Kodiak,

Yup. OP...is other people's.

Gotta add, yap, yap, ....This is second time for the CIBC's CEO to mess up, ignore it, and walk away, isn't it, and with a bonus sack full of shares from dreamland, not that I noticed.

Can't argue with bduke though, Kodiak, known each other too long, and besides, he'll send his Harvard kid to my house with notes of logic and reason and facts, and how could I ever defend myself?

So I can only say, "Uncle."

Thanks for the note Bill. MC to u too.

Parsley

[stubblejumper]

Purely political appointment, Ritz was his campain manager yeas ago. payback time

[wmoebis]

I sincerly, wish Elwin the best and congatulate him in his appointment.

I hope that he see the true value af Asst. commissioners and fills and expands the roles of those vacant positions.