12 Noon Pacific Time Friday Oct 3rd...
CIBC just announced that it has sold a $1.05 Billion mortgage asset investment to US-based Cerberus Capital Management. This announcement came less than an hour after the US House passed the "Bailout Bill" and Bush signed it.
CIBC and Cerberus have had a long-standing investment relationship.
In this transaction, CIBC rids itself of all risk associated with these $1.05 Billion Dollars worth of failed mortgage assets, and Cerberus will get bailed out by you and I and all other taxpayers when these bad assets are finally vetted.
Canadian Bank takes the first Big Bite of the US Taxpayer Bailout Apple.
Frankly, I thought it would be a Chinese or Middle-Eastern bank or sovereign wealth fund who acted first...
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