Monday, December 01, 2008

Alberta Loses Billions

Poor fiscal management is the heritage of the Tired Old in Heritage Trust Fund lossing billions in investment interest and the Alberta Treasury Branches (the Socred Bank)losing billions in the toxic paper loans. Anywhere else heads would roll. Howerver in the province of the one party state those in charge just keep on keeping on, including rewarding themselves for bad management decisions.
And the Alberta Treasury Branch brass - who showered themselves with hefty bonuses last year - are getting their ducks for an "additional provision" to cover the toxic asset-backed commercial paper they lost Albertans' money on.
ATB Financial has made an additional $55.5-million provision for potential losses on its holdings of asset-backed commercial paper, bringing its total provisions for possible ABCP losses to $308.6 million.ATB's net income for the quarter ended Sept. 30 fell to $5.7 million, the financial services company said Friday in its latest quarterly report. That's down from $8.5 million in the year earlier period when ATB took a $77.6-million provision for potential losses for its holdings of asset-backed commercial paper. ATB's $1.14-billion principal investment in ABCP will be converted to longer-term notes that reach maturity in six to nine years. ATB will revalue the restructured ABCP investment upon closing. "Times are getting tougher, even in resilient economies such as Alberta's, and interest rate conditions and uncertainty in the marketplace continue to impact our business. But our continued growth and positive results mean Albertans can be confident in ATB," said Dave Mowat, ATB's President and CEO.
Knowing full well that Alberta taxpayers will bail you out.


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