Former Caisse CEO takes some of the blame for big losses
Last Updated: Monday, March 9, 2009 | 3:01 PM ET
CBC News
Related
Internal Links
External Links
(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window)
The former CEO of the Caisse de dépôt et placement du Québec said Monday he takes responsibility for some of the fund's $39.8-billion loss last year.
Henri-Paul Rousseau headed the fund from 2002 until he left in May 2008, a period during which the Caisse made a big, ill-fated investment in asset-backed commercial paper.
"I'll tell you straight off — the ABCP situation developed when I was the top guy at the Caisse and, as such, I assume total responsibility," Rousseau said in a speech to the Montreal Board of Trade.
The ABCP market froze up in 2007 amid the U.S. subprime mortgage money meltdown. ABCP losses accounted for $4 billion of the total losses last year for the Caisse.
Rousseau said the Caisse was hit by a "perfect storm" in the financial world through a combination of factors, including a sharp drop in the Canadian dollar.
Rousseau said he still believes the Caisse is well-positioned for the future, despite its big loss last year.
Rousseau is now the vice-chairman of Power Corp.
Share Tools
Top News Headlines
- Montreal protesters march in peaceful defiance
- The clanging of pots and pans sounded throughout Montreal's downtown core Saturday night and into early Sunday morning, as thousands of protesters marched on in peaceful — but loud — defiance of Bill 78. more »
- Quebec tornadoes cause millions in damage
- Environment Canada confirms that two tornadoes — one of which was classed as a moderate F-1 packing winds of up to 150 km/h — touched down near Montreal Friday night, causing millions of dollars in damage. more »
- Teen struck by lightning in Ottawa dies
- The victim of a Friday lightning strike during a storm in east Ottawa has died, CBC News has learned. more »
- Missing Winnipeg children found in Mexico
- Two Winnipeg children reported missing and possibly in Mexico have been found alive, according to unofficial reports from an agency that works to find missing people. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Teen struck by lightning in Ottawa dies
- Missing Winnipeg children found in Mexico
- Quebec tornadoes cause millions in damage
- Montreal protesters march in peaceful defiance
- Woman's remains found in hockey bag on Cape Breton river
- Pope's butler arrested in Vatican leaks scandal
- Everest team unable to bring down Toronto woman's body
- WWE apologizes to Brazil over Canadian's flag stomp
- What a Greek euro exit could mean for Canada
