{"id":16378,"date":"2011-09-15T23:46:15","date_gmt":"2011-09-16T03:46:15","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16378"},"modified":"2011-09-15T23:46:15","modified_gmt":"2011-09-16T03:46:15","slug":"september-15-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16378","title":{"rendered":"September 15, 2011"},"content":{"rendered":"

The Toronto Star has some details regarding the Equitable Trust fraud<\/a>:<\/p>\n

More than 1,000 condo owners across Toronto fear they are on the hook for millions of dollars as victims of an alleged property fraud.<\/p>\n

Lawyers estimate the total misappropriation may exceed $20 million.<\/p>\n

Manzoor Moorshed Khan, president of Channel Property Management, borrowed millions against at least five buildings without their knowledge, according to documents obtained by the Star.
…<\/b>
\u201cIt seems to be a case where a fairly sophisticated criminal fraud has been perpetrated,\u201d Andrew Moor, president of The Equitable Trust Company, said in an interview. He said the suspected scheme \u201cmanaged to penetrate a longstanding process that has kept us safe.\u201d
…<\/b>
The Star has learned that at least four condominium corporations managed by Khan\u2019s company were victims in the alleged fraud. Of these, one has filed a lawsuit for $3.1 million against Khan, his company and several financial firms, including Equitable Trust.<\/p>\n

The suit, filed by owners at 25 Grenville St., a luxury condo with around 200 units in downtown Toronto, alleges Khan registered a fake bylaw without the board\u2019s knowledge that authorized him to borrow more than $3 million against the property, according to court document.<\/p><\/blockquote>\n

The fraud against Equitable, proud issuer of ETC.PR.A, was reported on August 23<\/a>; the depature of its CFO on September 12<\/a>.<\/p>\n

UBS announced unauthorized losses<\/a>:<\/p>\n

UBS AG (UBSN), Switzerland\u2019s biggest bank, said it may be unprofitable in the third quarter after a $2 billion loss from unauthorized trading at its investment bank.<\/p>\n

London police arrested Kweku Adoboli, a UBS employee, in connection with the loss, according to a person with knowledge of the situation who requested anonymity. City of London police and UBS declined to identify the man.<\/p>\n

UBS management aims to \u201cget to the bottom of the matter as quickly as possible, and will spare no effort to establish exactly what has happened,\u201d the bank\u2019s group executive board, led by Chief Executive Officer Oswald Gruebel, said in a memo to staff today.
…<\/b>
A 31-year-old man was arrested at business premises in central London at 3:30 a.m. on \u201csuspicion of fraud by abuse of position,\u201d City of London Police Commander Ian Dyson said in a statement today. The man remains in custody while the police investigate, the police said.<\/p>\n

Adoboli\u2019s LinkedIn page lists him as a director in ETF and Delta1 Trading at UBS investment bank in London. He previously held the position of trade support analyst at the investment bank, according to the LinkedIn profile. A University of Nottingham spokeswoman confirmed that Adoboli graduated from the school in July 2003, earning a degree in Computer Science.<\/p><\/blockquote>\n

Details are slowly trickling out<\/a>:<\/p>\n

As Switzerland\u2019s central bank imposed a limit on the franc\u2019s appreciation against the euro on Sept. 6, UBS AG (UBSN) trader Kweku Adoboli\u2019s Facebook profile had a plea for his friends: \u201cNeed a miracle.\u201d<\/p>\n

Just over a week later, at 3:30 a.m. yesterday, police in London arrested the 31-year-old Adoboli on suspicion of fraud by abuse of position. UBS told investors less than five hours later that \u201cunauthorized trading by a trader\u201d it didn\u2019t identify caused a $2 billion loss.
…<\/b>
Moody\u2019s Investors Service put credit ratings for UBS under review for possible downgrade. The examination will focus on \u201cweaknesses in the group\u2019s risk management and controls that have become evident again,\u201d Moody\u2019s said in a statement. The loss itself \u201cwould be manageable for the group given its sound liquidity and capital position.\u201d<\/p>\n

UBS asked British police at 1 a.m. yesterday to arrest Adoboli, before alerting the U.K. financial regulator or prosecutors, according to two people familiar with the matter. The Financial Services Authority was notified shortly after the police, and prosecutors at the Serious Fraud Office weren\u2019t contacted at all, according to the two people, who asked not to be identified because the investigations are private.<\/p>\n

UBS declined yesterday to say how the trading allegedly lost the bank $2 billion. Gruebel called the loss \u201cunauthorized\u201d and \u201cdistressing\u201d in an e-mail to employees, without giving details. No client positions were affected, the Zurich-based company said in the statement, issued on the third anniversary of Lehman Brothers Holdings Inc. (LEHMQ)\u2019s collapse.<\/p><\/blockquote>\n

Securities regulators are publicizing a request for comments<\/a>:<\/p>\n

The CSA, and the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA) (together referred to as the self-regulatory organizations or SROs), are working to develop requirements in a number of areas related to a client’s relationship with a registrant. This initiative is referred to as the CRM Project. As part of this work, the CSA has already developed requirements relating to:<\/p>\n

\u2022 relationship disclosure information delivered to clients at account opening<\/p>\n

\u2022 comprehensive conflicts of interest requirements<\/p>\n

These requirements were included in the Rule when it came into force.<\/p>\n

The amendments outlined in this Notice relate to the remaining elements of CRM, specifically:<\/p>\n

\u2022 disclosure of charges related to a client’s account and securities transactions<\/p>\n

\u2022 account performance reporting<\/p><\/blockquote>\n

The performance reporting is a welcome feature, but there are no provisions requiring advisors to publicize their composites. They’re allowing dollar-weighted calculations as well, which is craziness, and they are making a big fuss about original cost reporting, which is crazier.<\/p>\n

It’s heavily influenced by a report Report: Performance Reporting
\nAnd Cost Disclosure<\/a>:<\/p>\n

Only two common investment terms are understood well by more than 2\/3 of investors, namely, \u2018rate of return\u2019 and \u2018Term deposit\/GIC interest\u2019. Understanding drops off quickly to the 4 out of 10 level when we talk about synthetic measures like market indices or \u2018benchmark funds\u2019. Terms like \u2018Management Expense Ratio\u2019 are understood by less than 1\/3 of investors.
…<\/b>
When we look at how investors assess the performance of their portfolio, we find that most people simply assess the amount of money they gained or lost since their last account statement. The use of market indices and benchmark performance is most common among those with the most money invested.<\/p><\/blockquote>\n

YLO had a filing on SEDI<\/a> today, but there was nothing of particular interest – just two more days of buying of YLO.PR.B, YLO.PR.C and YLO.PR.D in the familiar daily quantities, followed by a cancellation of all shares held by the firm on September 14.<\/p>\n

It was a mixed day for the Canadian preferred share market with PerpetualDiscounts up 7bp, FixedResets down 9bp and DeemedRetractibles winning 12bp. Volatility was at its normal low levels. Volume was low.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n2.1887 %<\/td>\n2,177.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n2.1887 %<\/td>\n3,275.1<\/td>\n<\/tr>\n
Floater<\/td>\n2.99 %<\/td>\n3.34 %<\/td>\n61,341<\/td>\n18.90<\/td>\n3<\/td>\n2.1887 %<\/td>\n2,351.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.81 %<\/td>\n2.33 %<\/td>\n62,134<\/td>\n1.64<\/td>\n8<\/td>\n0.0434 %<\/td>\n2,463.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.37 %<\/td>\n0.57 %<\/td>\n52,681<\/td>\n0.45<\/td>\n4<\/td>\n0.0727 %<\/td>\n2,498.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0434 %<\/td>\n2,252.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.62 %<\/td>\n4.49 %<\/td>\n118,283<\/td>\n1.08<\/td>\n16<\/td>\n0.0861 %<\/td>\n2,116.2<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.27 %<\/td>\n5.32 %<\/td>\n114,367<\/td>\n14.97<\/td>\n14<\/td>\n0.0746 %<\/td>\n2,259.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.15 %<\/td>\n3.11 %<\/td>\n206,038<\/td>\n2.65<\/td>\n59<\/td>\n-0.0901 %<\/td>\n2,329.6<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.04 %<\/td>\n4.58 %<\/td>\n239,357<\/td>\n7.81<\/td>\n46<\/td>\n0.1151 %<\/td>\n2,201.8<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n-1.38 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-15
\nMaturity Price : 22.86
\nEvaluated at bid price : 24.26
\nBid-YTW : 3.92 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.53
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nDeemed-Retractible<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.00
\nBid-YTW : 6.11 %<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\n4.93 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-15
\nMaturity Price : 21.51
\nEvaluated at bid price : 21.51
\nBid-YTW : 2.45 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
BMO.PR.J<\/td>\nDeemed-Retractible<\/td>\n134,145<\/td>\nRBC crossed blocks of 60,900 and 29,500, both at 25.01
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n
IFC.PR.C<\/td>\nFixedReset<\/td>\n56,050<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.01
\nBid-YTW : 4.10 %<\/td>\n<\/tr>\n
HSB.PR.E<\/td>\nFixedReset<\/td>\n53,102<\/td>\nRBC crossed 44,700 at 27.40.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.20
\nBid-YTW : 3.21 %<\/td>\n<\/tr>\n
RY.PR.G<\/td>\nDeemed-Retractible<\/td>\n48,778<\/td>\nTD crossed 17,200 at 24.98.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.88
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nDeemed-Retractible<\/td>\n48,462<\/td>\nNesbitt crossed 25,000 at 25.14.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-05-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.16
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
RY.PR.B<\/td>\nDeemed-Retractible<\/td>\n44,020<\/td>\nNational crossed 40,000 at 25.45.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 4.36 %<\/td>\n<\/tr>\n
There were 26 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.50 – 25.88
\nSpot Rate : 0.3800
\nAverage : 0.2843<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 5.55 %<\/td>\n<\/tr>\n

CM.PR.K<\/td>\nFixedReset<\/td>\nQuote: 26.73 – 26.95
\nSpot Rate : 0.2200
\nAverage : 0.1513<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.73
\nBid-YTW : 3.08 %<\/td>\n<\/tr>\n

CM.PR.M<\/td>\nFixedReset<\/td>\nQuote: 27.60 – 27.93
\nSpot Rate : 0.3300
\nAverage : 0.2731<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.60
\nBid-YTW : 3.02 %<\/td>\n<\/tr>\n

BAM.PR.K<\/td>\nFloater<\/td>\nQuote: 15.57 – 15.80
\nSpot Rate : 0.2300
\nAverage : 0.1814<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-15
\nMaturity Price : 15.57
\nEvaluated at bid price : 15.57
\nBid-YTW : 3.36 %<\/td>\n<\/tr>\n

TRP.PR.A<\/td>\nFixedReset<\/td>\nQuote: 25.85 – 26.03
\nSpot Rate : 0.1800
\nAverage : 0.1416<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-09-15
\nMaturity Price : 23.60
\nEvaluated at bid price : 25.85
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n

BMO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 27.01 – 27.15
\nSpot Rate : 0.1400
\nAverage : 0.1027<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-25
\nMaturity Price : 26.00
\nEvaluated at bid price : 27.01
\nBid-YTW : 3.40 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The Toronto Star has some details regarding the Equitable Trust fraud: More than 1,000 condo owners across Toronto fear they are on the hook for millions of dollars as victims of an alleged property fraud. …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-16378","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16378","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=16378"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16378\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}