Here are the top reads on deals and financial services over the last week
FINANCIAL SERVICES NEWS
TD chief executive sees more tough times ahead for retail customers before recovery: Bharat Masrani predicts that by late summer, the North American economy will take the first steps in a spirited recovery from a global pandemic. But Toronto-Dominion Bank’s chief executive expects some dark days between now and then, based on the “terrible” times the bank’s customers are experiencing as the new coronavirus sweeps through New York City. (Andrew Willis, James Bradshaw)
CIBC loses class-action lawsuit over unpaid overtime: An Ontario court has ruled that Canadian Imperial Bank of Commerce broke federal labour law by allowing employees to work unpaid overtime for years, bringing one of the country’s largest class-action lawsuits closer to resolution after it has dragged on for more than a decade. (James Bradshaw)
BMO falls short on four measures but top executives still get 94 per cent of their incentive pay: How did Bank of Montreal do last year? It was a mixed bag. Its revenue and earnings growth were tops in the industry, but in a lot of important ways – profitability, cost control, share price performance – the bank lagged peers. Indeed, if you look at the proxy circular sent to shareholders in advance of Tuesday’s annual meeting, you’ll see the bank missed every single financial goal it set for its executives. (David Milstead)
BMO, Scotiabank CEOs say they have ample capital to absorb coronavirus shocks: The chief executives of two major Canadian banks say they expect to have ample capital to absorb shocks from the coronavirus pandemic, and do not plan to cut dividends or lay off staff this year. (James Bradshaw)
Executive compensation up at Manulife, down at Sun Life: Top executives at Manulife Financial Corp. saw big bumps in their compensation in 2019 thanks to increased incentive pay, while payouts declined at Sun Life Financial Inc. as bonuses fell. (David Milstead)
Why Canada’s banks have no plans to suspend dividends despite a global trend of cuts: Canadian bank CEOs insist they will keep paying dividends, even as banks around the world have axed payouts under pressure from regulators to preserve capital within the banking system. (James Bradshaw and Mark Rendell)
David Dodge foresees tricky problems down the road for the Bank of Canada: David Dodge has some candid things to say about the powerful weapons that the current leadership at the Bank of Canada has unleashed to fight the COVID-19 crisis. First, they’re doing the right thing. Second, the right thing – to “essentially print money” – could have uncomfortable consequences down the road. (David Parkinson)
DEALS NEWS: MERGERS, ACQUISITIONS, IPOs and FINANCINGS
Fintechs struggle to lend to entrepreneurs, even as demand surges from virus: The coronavirus crisis is constraining digital small-business lending services just as they’re seeing a surge in demand from entrepreneurs left cash-strapped by the pandemic. (Josh O’Kane)
IN CASE YOU MISSED IT
Onex founder delivers ‘we got this’ message to investors: This generation’s most celebrated investor, Warren Buffett, once said that only when the tide goes out do you discover who’s been swimming naked. Well the tide is out, courtesy of a global pandemic. And one of this country’s most celebrated investors, private equity pioneer Gerry Schwartz, would like everyone to know he’s wearing his swimsuit. (Andrew Willis)
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