yeah, Johnny and situations like this are putting a damper on things as well. IMO
Breaking News from The Globe and Mail
Canaccord warns of lower profit
Boyd Erman
Friday, January 30, 2009
Canaccord Capital Inc., Canada's biggest independent brokerage firm, said earnings will below previous forecasts as the company books additional accounting losses because of the asset-backed commercial paper mess.
Canaccord on Friday purchased $152-million of restructured ABCP from clients who were stuck with the seized-up debt for the past 17 months. Because of extra costs related to the brokerage's relief program for its clients, Canaccord said it will book an additional $2.7-million pre-tax charge.
The firm said it also may further write down the value of its own ABCP holdings, which could result in further hits to earnings.
Third-quarter earnings, which the company reports next month, "are expected to be below the current consensus estimate," Canaccord said.
Shares of Canaccord were halted for the announcement.
© The Globe and Mail
