A behind the scenes look at why Home Capital's HOOPP funding almost fell through
Once again on BNN today, we venture into financial Labyrinths.
Mortgage lender Home Capital Group (HCG.TO) says outflows from its high interest savings accounts have ended after traumatic weeks in which the company fired its CEO, was accused of misleading shareholders and lost about $2.5 billion in deposits.
At 10 a.m. ET, we talk to The Globe and Mail’s Andrew Willis. He and colleagues including Janet McFarland reported this weekend that an emergency plan to obtain financing for Home Capital nearly fell apart with hours to spare.
Meanwhile, The Globe quotes Bank of Canada Governor Stephen Poloz are saying Home Capital Group's problems are “idiosyncratic” and don’t point to weakness in the overall financial system. But he added that potential stress on borrowers is a serious concern for the central bank.
And at 3 p.m. ET, we hear from James Thorne, chief capital market strategist at Caldwell Investment Management, who has been warning about the threat of poor lending practices in housing. He told us last month that Canadian investors in bank shares have been complacent. “Canadians banks are really expensive and we may be at the top of a real estate bubble.”
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'WIZARD OF LIES'
Still on tangled financial tales, we’ll be joined at 10:20 a.m. ET by Diana Henriques, author of The Wizard of Lies: Bernie Madoff and the Death of Trust, which has been made into an HBO movie starring Robert De Niro as the title crook.
The New York Daily News says Michelle Pfeiffer, who plays Madoff’s wife Ruth, is “chic with a thick Queens accent.” The film includes the suicide of Madoff’s son Mark on the second anniversary of his father’s arrest and the death of his other son from lymphoma in 2014.
Oil has jumped more than US$1.50 this morning to trade at more than US$49 after Saudi Arabia and Russia said supply cuts should be prolonged for nine months. “The two ministers agreed to do whatever it takes to achieve the desired goal of stabilizing the market,” according to a joint statement.
On Commodities at 11:50 a.m. ET, we’ll get trading suggestions for crude and other natural resource futures this week from Jerrod Kitt, vice president at Linn & Associates.
So far we’ve been turned down for an interview by George Burns, CEO of Eldorado Gold (ELD.TO), which is buying Quebec gold mine developer Integra Gold (ICG.V) in a deal worth $590 million, but we’ll keep trying.
Credit Suisse says the transaction is “positive” for Eldorado, which has assets in Greece and Turkey, “due to diversification into Canada… and addition of a low capital intensity and low cost asset with high exploration upside."
Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.