{"id":858,"date":"2007-05-18T11:38:48","date_gmt":"2007-05-18T15:38:48","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=858"},"modified":"2007-05-18T11:38:48","modified_gmt":"2007-05-18T15:38:48","slug":"bmo-on-credit-watch-negative-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=858","title":{"rendered":"BMO on Credit Watch Negative: S&amp;P"},"content":{"rendered":"<p><a href=\"http:\/\/www.standardandpoors.com\">S&#038;P<\/a> today:<\/p>\n<blockquote><p>placed the ratings on Bank of Montreal (BMO) and its related subsidiaries, including the &#8216;AA-&#8216; long-term counterparty credit rating on BMO, on CreditWatch with negative implications.<\/p>\n<p>&#8230;<\/p>\n<p>The absolute size of the estimated commodity trading losses far exceeds\u00a0the bank&#8217;s average market value exposure to commodities risk, is disproportionate to its total trading revenues, and does not reflect BMO&#8217;s stated strategy of being a low-risk bank.<\/p>\n<p>Standard &#038; Poor&#8217;s will be conducting a full review of BMO&#8217;s trading risk management and trading operations within the next 30 days, with a particular focus on its commodities trading operations, and its back and middle offices.<\/p>\n<p>Following our review, should the bank&#8217;s trading risk and enterprise risk management not meet our expectations, both the short- and long-term ratings could be lowered by one notch.<\/p><\/blockquote>\n<p>This follows <a href=\"http:\/\/www2.bmo.com\/news\/article\/0,1083,contentCode-6507_divId-4_langId-1_navCode-112,00.html\">revelations of trading losses of $680-million<\/a>. The $680-million figure cannot be taken too seriously &#8211; <a href=\"http:\/\/www2.bmo.com\/news\/article\/0,1083,contentCode-6439_divId-4_langId-1_navCode-112,00.html\">three weeks ago<\/a> it was somewhere between $350-million and $450-million.<\/p>\n<p>BMO has the following preferred share issues outstanding: <a href=\"http:\/\/www.prefblog.com\/?p=219\">BMO.PR.G<\/a> BMO.PR.H <a href=\"http:\/\/www.prefblog.com\/?p=255\">BMO.PR.I<\/a> <a href=\"http:\/\/www.prefblog.com\/?p=484\">BMO.PR.J<\/a> &#038; BMO.PR.V.<\/p>\n<p>The rogue (or simply incompetent)\u00a0managers at BMO\u00a0are going to have to have a lot of lunches with each other to fix this one up! Expect to see a few clerks thrown to the wolves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S&#038;P today: placed the ratings on Bank of Montreal (BMO) and its related subsidiaries, including the &#8216;AA-&#8216; long-term counterparty credit rating on BMO, on CreditWatch with negative implications. &#8230; The absolute size of the estimated &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-858","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/858","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=858"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/858\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}