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Embattled Home Capital puts itself on the block after $2-billion loan from HOOPP

Home Capital Group Inc. shares roared back Thursday, as the beleaguered mortgage lender firmed up an emergency multibillion-dollar loan and signalled that it may sell itself.

The stock closed up 34 per cent on the Toronto Stock Exchange, its biggest one-day increase in more than 20 years, as some investors wagered that the company is regaining its financial footing – at least for the time being.

The sharp rebound in the stock came the day after its biggest fall in history. Home Capital lost 65 per cent of its value on Wednesday, in part because of doubts over the company's long-term viability and its ability to fund itself.

"We are taking important steps to seek to stabilize the business," Kevin Smith, chairman of Toronto-based Home Capital, said in an e-mail to The Globe and Mail. "As rough as the past few days have been, we are very focused on getting this company back on track and doing everything we can to make that happen."  Story (Niall McGee and Jacqueline Nelson)

Signs of a housing storm as alternative lenders slide

Canada's smaller financial institutions, including regional players such as Laurentian Bank and Canadian Western Bank that lend to higher-risk home buyers, were hit with a storm this week that came out of a clear blue sky.

Investor sentiment toward mortgage markets flipped in recent days in the wake of financial problems at Home Capital Group Inc., the country's largest lender to home owners who can't get financing from the big banks.

Financial institutions that have a booming business in giving out non-prime home loans are discovering that's no longer something to brag about. In fact, it's an activity some lenders will likely curtail. Story (Andrew Willis)

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DAILY DEALS

Desjardins Group is looking to acquire insurers, wealth managers and payments firms to expand further outside Quebec and challenge the dominance of Canada's big financial services firms, Chief Executive Officer Guy Cormier said. Story

Quebec's Dutil family, a dynasty in the province's manufacturing industry, is taking Canam Group Inc. private in a deal that will shift control of the structural steel maker to U.S. private equity firm American Industrial Partners. Story

ON THE MOVE

Goldman Sachs Group Inc. has formally named banker Ian Taylor the head of equity capital markets (ECM) for Canada. Story (Christina Pellegrini)

Canaccord Genuity has hired Chris Blackwell to be its head of investment banking in Canada and is promoting Jason Melbourne to be its head of institutional equity sales and trading/securities in Canada, the bank said in a staff memo on Wednesday. Story (Christina Pellegrini)

ELSEWHERE IN FINANCE

Top executives and directors at banks used the Trump rally to cash out. Story (WSJ)

Germany's No. 1 lender Deutsche Bank AG is leaner, more profitable and more financially robust than a year ago, but its revenue is still underwhelming. Story (Bloomberg Gadfly)

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