Friday, March 14, 2008
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.
notice of motion, filed Thursday,
asks for hearings on the ABCP
crisis, "including hearing from
severely affected Canadians."
hearings take place as proposed by
Mr. McCallum, they will try to find
out whether regulators and other
stakeholders could have done a
better job in anticipating the
crisis and reducing its costs.
notice also asks "what action the
federal government, federal
regulators and other stakeholders
are taking so as to reduce the
likelihood of experiencing a similar
crisis in the future."
Canada's $33-billion ABCP market has
been frozen since last summer when
investors found they could not roll
over the paper as planned.
group of investors, banks and
lawyers working on a restructuring
are due to release details of their
proposals on Friday.
Earlier this week, the Financial
Post reported that the crisis in the
commercial-paper market could be
nearing an end. Sources told the
Post that the committee tasked with
restructuring the notes plans to
file papers in an Ontario court,
seeking a judge's approval to
implement a restructuring package
agreed to in late December. Those
plans have left some small investors
concerned that their interests will
be steamrollered by those of much