AbitibiBowater, Inc. (fka ABWTQ)

[Pitt77]

Movements Occupy Wall Street, in Montreal. Expose the bankruptcy of AbitibiBowater, and put into question the toxic investments CDS

Toxic financial products banned in Quebec? 14 octobre 2011 à 16h55

"The AMF should be the study of complex financial products and tell the SEC for example, in some cases, that product is not authorized for Quebec," he said.

Mr. Rebello has particularly against credit default swaps (credit default swaps or CDS), a product that allows investors to make money in business failures. He thinks that this product should be banned, but believes that the AMF should require a much greater transparency on the part of its holders.

In the case of bankruptcy of AbitibiBowater, there were $ 500 million and the directors of the company may have been able to hold, suggested by Mr. Rebello.

"In finance as in the sport, should not be allowed to bet against his team," he insists.

"When it came time to obtain the consent of the creditors of Bowater for the liquidity to avoid bankruptcy, almost half refused," he said, suggesting they may have an interest in bankruptcy occurs because they had CDS. No one could ever prove the veracity of this information.
http://tvanouvelles.ca/lcn/economie/archives/2011/10/20111014-165538.html
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Toxic financial products banned in Quebec?

While the movements Occupy Wall Street grows and spreads to Montreal and Toronto, a member of the Parti Québécois supports the Financial Markets Authority (AMF) should play a more proactive role in the supervision of financial products complex for sale by large financial New York and London.

In a letter of support for Quebec outrage against the financial system, the founder of Responsible Investment Group and member of La Prairie, François Rebello, says that the policeman Quebec market to assert its prerogatives and refusing, in some cases The marketing of a product when it is misunderstood or considered dangerous.

Contrary to popular belief, Mr. Rebello says that Quebec has the power to act on trade in securities.

"We have reciprocal agreements with other regulatory agencies. But we must ensure that their standards match ours, "he said.

"The AMF should be the study of complex financial products and tell the SEC for example, in some cases, that product is not authorized for Quebec," he said.

Mr. Rebello has particularly against credit default swaps (credit default swaps or CDS), a product that allows investors to make money in business failures. He thinks that this product should be banned, but believes that the AMF should require a much greater transparency on the part of its holders.

In the case of bankruptcy of AbitibiBowater, there were $ 500 million and the directors of the company may have been able to hold, suggested by Mr. Rebello.

"In finance as in the sport, should not be allowed to bet against his team," he insists.

"When it came time to obtain the consent of the creditors of Bowater for the liquidity to avoid bankruptcy, almost half refused," he said, suggesting they may have an interest in Bankruptcy occurs because they had CDS. No one could ever prove the veracity of this information.

Mr Rebello said that the commercial paper, which was so bad at the Caisse de depot et placement du Quebec, could be blocked by the AMF because it was too complex and poorly understood.

Joined by Silver, Sylvain Théberge, spokesman of the AMF, said that Quebec was one of the first states to adopt legislation governing derivatives, in February 2009. "We recognized it was a bit before the jungle, but the legal parameters governing derivatives have since been strengthened," he said.

Mr. Théberge has acknowledged that the MFA had never "blocked" the introduction of a derivative. To his knowledge, the AMF had never occurred either to ask the issuers of derivatives to make changes to their products before selling them in Quebec.

The Montreal Exchange is a mecca of derivative transactions in the world.