Media focus on ABCP fiasco very timely

In the wake of settlement between New York State Attorney General Andrew Cuomo and Citibank (see prior post “Cuomo takes action against Citigroup, while ABCP buyers wait in vain” August 2-08), it was good to see a large spread in the Globe and Mail this Saturday describing the faces behind the retail ownership component of the ABCP fiasco. As we’ve discussed here in the past, Canada’s many regulators haven’t yet outlined what they intend to do – if anything – about the allegations that retail investors were told ABCP was as “good” as T-Bills (see prior posts “Canadian gumshoes ignore fraud & billions in losses” February 3-08, and “Citigroup fined $100MM for ARS, while ABCP fiasco remains untouched” August 7-08).

Let’s hope that the Globe’s story tomorrow on the role Canada’s regulators played in the ABCP fiasco gets the CSA, OSC and certain provincial authorities to sit up and take notice. At this point, Attorney General Cuomo has shown how to get it done; but it would still be better late than never if Canada’s regulatory armies saddled up on this issue.

One thing’s for sure. The CSA and IMET don’t read the blogs, as we’ve been chipping at this topic for months. But they certainly read the Globe.

MRM