Bank towers are shown from Bay Street in Toronto's financial district, on Wednesday, June 16, 2010. Canada's largest city is getting itself a new resident this year: the headquarters of the federal government's new infrastructure financing agency. THE CANADIAN PRESS/Adrien Veczan
Home Capital targets rebirth, not burial
Mortgage lender Home Capital Group got something money can't buy on Monday: A much-needed dose of respectability.
Three weeks into a crisis of confidence that some expected to kill the company – and potentially undermine parts of the housing market – a trio of proven executives committed their formidable reputations to Home Capital by joining the board.
Their arrival changes the way Home Capital is perceived. Story (Andrew Willis)
Home Capital adds new directors as as deposits sink below $200-million
Shares of Home Capital Group Inc. recovered ground on Monday after the troubled alternative mortgage lender named three veteran business executives to its board even as it revealed it has used $1.4-billion of its $2-billion credit line and suspended its dividend.
The mortgage lender said Claude Lamoureux, Paul Haggis and Sharon Sallows have joined its board effective immediately, and independent director Brenda Eprile, who joined the board last year, has been appointed chair. Former chair Kevin Smith will remain a director.
Mr. Lamoureux in particular has a high profile as former CEO of the Ontario Teachers' Pension Plan and a founder of the powerful Canadian Coalition for Good Governance. He said on Monday that he did not seek the job, but agreed to join the board because he believes he can help the company. Story (Janet McFarland)
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DAILY DEALS
Ontario is selling a further $2.79-billion stake in Hydro One Limited, taking advantage of the recent strong share price in the utility, selling 120 million shares at $23.25 apiece to a syndicate of Bay street investment banks. Story (Niall McGee)
PrivateBancorp Inc. is forging ahead with a planned May 12 meeting for investors to vote on the $4.9-billion (U.S.) takeover offer by Canadian Imperial Bank of Commerce, even as one proxy advisory firm is urging that they reject the latest terms of the deal. Story (Christina Pellegrini)
Canada's Hudson's Bay Co has hired a debt restructuring adviser to review potential options for combining its business with debt-laden U.S. department store operator Neiman Marcus Group, according to people familiar with the matter. Story
Handbag maker Coach Inc said it would buy Kate Spade & Co for $2.4-billion as it looks to tap the popularity of its smaller rival's quirky satchels and totes among millennials. Story
ELSEWHERE IN FINANCE
Banks are trying to enlist the Trump administration to fight a new accounting rule requiring them to book losses on soured loans more quickly, potentially setting the stage for a clash between the Treasury Department and the Securities and Exchange Commission. Story (WSJ, subscription required)
There's certainly no shortage of cash lying around at Berkshire Hathaway Inc. Even so, Warren Buffett's struggle to find the $407-billion company's next meaningful acquisition shows that his relative buying power has diminished. Story