{"id":14884,"date":"2011-04-28T16:04:57","date_gmt":"2011-04-28T20:04:57","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=14884"},"modified":"2011-04-28T16:04:57","modified_gmt":"2011-04-28T20:04:57","slug":"cm-to-prioritize-preferred-share-redemptions","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=14884","title":{"rendered":"CM to Prioritize Preferred Share Redemptions"},"content":{"rendered":"<p>Doug Alexander of Bloomberg <a href=\"http:\/\/www.bloomberg.com\/news\/2011-04-28\/cibc-will-use-excess-capital-to-redeem-preferred-shares-mccaughey-says.html\">reports<\/a>:<\/p>\n<blockquote><p>Canadian Imperial Bank of Commerce plans to spend any extra capital to redeem C$3.16 billion ($3.32 billion) in preferred shares that won\u2019t count as regulatory capital under new banking rules, Chief Executive Officer Gerald McCaughey said.<\/p>\n<p>\u201cWe do have an excess of Tier 1 capital today and in the future,\u201d McCaughey, 55, said in an interview today. \u201cA first step in terms of our usage of excess resources will be to reduce instruments that we have that are ineffective in the new environment.\u201d<\/p>\n<p>Canada\u2019s fifth-biggest bank had a so-called Tier 1 capital ratio of 14.3 percent as of Jan. 31, second only to National Bank of Canada. The Toronto-based bank sold more than C$2.4 billion in preferred shares and other notes since August 2008 to shore up its balance sheet during the financial crisis.<br \/><b>&#8230;<\/b><br \/>\u201cWe will be looking at our non-common Tier 1 instruments in the near future,\u201d McCaughey said in Winnipeg, Manitoba, after the bank\u2019s annual meeting. \u201cThat allows us to deploy a certain amount of excess resources in a fashion that does help earnings per share.\u201d<\/p>\n<p>Share buybacks aren\u2019t a priority for the Toronto-based bank, McCaughey said.<\/p>\n<p>\u201cWe do not expect in the near term to be deploying that capital in activities such as buybacks,\u201d he said.<\/p><\/blockquote>\n<p>This is fascinating. On the surface, it sounds as if they don&#8217;t intend any issuance of non-common Tier 1 at all &#8211; but I find that very hard to believe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Doug Alexander of Bloomberg reports: Canadian Imperial Bank of Commerce plans to spend any extra capital to redeem C$3.16 billion ($3.32 billion) in preferred shares that won\u2019t count as regulatory capital under new banking rules, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-14884","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14884"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14884\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}