The following is the text of the
industrial product and raw material prices report as reported
by Statistics Canada.

The Industrial Product Price Index (IPPI) edged up 0.2% in
March, led by higher prices for petroleum and coal products.
However, the advance of IPPI was moderated by primary metal
products (-1.0%). The Raw Materials Price Index (RMPI) declined
1.6%, largely because of mineral fuels.

Industrial Product Price Index, monthly change

The IPPI was up 0.2% in March compared with February.
Despite a third consecutive gain, the IPPI remained below its
recent 2011 peak. The number of product groups that have risen
since the beginning of the year declined from 10 in January to 6
in March.

The increase in the IPPI in March was primarily the result
of higher prices for petroleum and coal products (+1.8%),
particularly gasoline (+4.7%), which was up for a third straight
month.

Fruit, vegetables and feeds (+0.8%) and lumber and other
wood products (+0.7%) also contributed to the increase of the
index.

Prices for fruit, vegetables and feeds were pushed upward
mainly by feeds (+2.2%).

Softwood lumber (+1.3%) was the leading factor in the
increase in lumber and other wood product prices. The strength
of building permits in the United States played a role in
sustaining prices, although the demand for wood was modest.

The advance in the IPPI was moderated mainly by primary
metal products (-1.0%), particularly nickel products (-8.8%),
aluminum products (-1.2%), silver and platinum (-4.0%) and gold
and gold alloys in primary forms (-4.4%). The decline in nickel
and aluminum prices was partly a result of weaker economic
activity in Asia, a large importer of metals.

Prices for motor vehicles and other transportation
equipment edged down 0.1%.

Some Canadian producers who export their products are
generally paid on the basis of prices set in US dollars.
Consequently, the 0.3% increase in the value the Canadian dollar
relative to the US dollar in March had the effect of reducing
the corresponding prices in Canadian dollars. However, the
exchange rate had a negligible impact on the index as a whole.

The IPPI excluding petroleum and coal products declined
0.1% in March.

12-month change in the Industrial Product Price Index

Compared with the same month a year earlier, the IPPI rose
0.9% in March. The index continued to rise on a 12-month basis,
though its growth has been slowing since September 2011.

Relative to March 2011, the index was pushed upward mainly
by higher prices for petroleum and coal products (+4.2%),
notably gasoline (+7.9%).

More modest contributions to the year-over-year increase in
the index were made by motor vehicles and other transportation
equipment (+1.6%) and fruit, vegetables and feeds (+2.6%).

On a 12-month basis, the advance of the IPPI was moderated
primarily by a decrease in primary metal products (-5.7%), which
posted its fifth consecutive decline. The biggest contributors
to the decrease in this group of products were nickel (-28.9%),
aluminum (-7.6%) and copper and copper alloys (-5.6%).

The 1.7% decline in the value of the Canadian dollar
against the US dollar contributed to the growth of the index.
Without the impact of the exchange rate, the IPPI would have
risen 0.5% instead of 0.9%.

Compared with March 2011, the IPPI excluding petroleum and
coal products increased 0.4%, a slightly slower pace than in
recent months.

Raw Materials Price Index, monthly change

The RMPI was down 1.6% in March, its second consecutive
monthly decrease. The decline was mostly the result of mineral
fuels (-3.6%), particularly crude petroleum (-3.8%), which
decreased for a fourth straight month.

The decline of the RMPI was moderated primarily by
vegetable products (+1.6%), especially oilseeds (+5.7%) and
grains (+1.5%).

Within the oilseeds product group, prices rose for canola
(+7.8%) and soybeans (+5.8%). The increase in soybean prices was
partly the result of a decline in global supply, especially in
South America, where dry weather conditions disrupted normal
production.

The main contributors to the increase in grain prices were
corn (+2.0%), barley (+2.8%) and wheat (+1.0%).

The RMPI excluding mineral fuels posted a 0.3% increase in
March, its third consecutive monthly advance.

12-month change in the Raw Materials Price Index

Compared with the same month a year earlier, the RMPI was
down 5.6%, its first decrease since October 2009.

The index was pushed downward largely by lower prices for
mineral fuels (-8.3%) and, to a lesser extent, by non-ferrous
metals (-10.1%).

Crude petroleum (-8.4%) was primarily responsible for the
decline in mineral fuels, posting its first decrease since
October 2010.

Except for precious metals, all commodities in the non-
ferrous metals group were down on a 12-month basis. Among the
main contributors to the decline were radioactive concentrates
(-23.9%), non-ferrous scrap metals (-10.9%) and other non-
ferrous base metals (-14.4%).

Year over year, the RMPI excluding mineral fuels fell 3.2%
in March, its fourth consecutive decline.

Note to readers

All data in this release are seasonally unadjusted and
usually subject to revision for a period of six months (for
example, when the July index is released, the index for the
previous January becomes final).

The Industrial Product Price Index (IPPI) reflects the
prices that producers in Canada receive as the goods leave the
plant gate. It does not reflect what the consumer pays. Unlike
the Consumer Price Index, the IPPI excludes indirect taxes and
all the costs that occur between the time a good leaves the
plant and the time the final user takes possession of it,
including transportation, wholesale and retail costs.

Canadian producers export many goods. They often indicate
their prices in foreign currencies, especially in US dollars,
which are then converted into Canadian dollars. In particular,
this is the case for motor vehicles, pulp, paper and wood
products. Therefore, a rise or fall in the value of the Canadian
dollar against its US counterpart affects the IPPI. But the
conversion into Canadian dollars only reflects how respondents
provide their prices. Moreover, this is not a measure that takes
into account the full effect of exchange rates, since that is a
more difficult analytical task.

The conversion of prices received in US dollars is based on
the average monthly exchange rate (noon spot rate) established
by the Bank of Canada and is available on CANSIM in table 176-
0064 (series v37426). Monthly and annual variations in the
exchange rate, as described in the text, are calculated
according to the indirect quotation of the exchange rate (for
example, CAN$1 = US$X).

The Raw Materials Price Index (RMPI) reflects the prices
paid by Canadian manufacturers for key raw materials. Many of
those prices are set on the world market. However, as few prices
are denominated in foreign currencies, their conversion into
Canadian dollars has only a minor effect on the calculation of
the RMPI.

To contact the reporter on this story:
Ilan Kolet in Ottawa at ikolet@bloomberg.net

To contact the editor responsible for this story:
Marco Babic at mbabic@bloomberg.net

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Article source: http://www.bloomberg.com/news/2012-04-30/canada-march-industrial-product-and-raw-materials-prices-text-.html

OTTAWA, April 30, 2012 (GLOBE NEWSWIRE) — Telesat Canada (“Telesat”), a wholly-owned subsidiary of Telesat Holdings Inc. (“Holdings”) today announced that, together with Telesat LLC, as co-issuer, it intends to issue US$700 million of senior notes due 2017 (the “Senior Notes”). Telesat intends to use the net proceeds from the offering to fund the repurchase or redemption pursuant to a cash tender offer (the “Tender Offer”) and related consent solicitation for its outstanding 11.0% senior notes due November 1, 2015. The closing of the Tender Offer and related consent solicitation remains subject to the satisfaction of the terms and conditions of such Tender Offer.

The Senior Notes are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States, only to non-U.S. investors pursuant to Regulation S. The Senior Notes will not be registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent an applicable exemption from registration requirements or in a transaction not subject to the registration requirements of the Securities Act or any state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. Any offers of the notes will be made only by means of a private offering memorandum. No assurance can be made that the Senior Notes will be issued.

Forward-Looking Statements Safe Harbor

This news release contains statements that are not based on historical fact and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “will”, “subject to”, “intends”, “would” or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties. Detailed information about some of Telesat’s known risks and uncertainties is included in the “Risk Factors” section of Telesat’s Annual Report for the fiscal year ended December 31, 2011, filed with the United States Securities and Exchange Commission (SEC) on February 22, 2012, as well as Telesat’s quarterly reports on Form 6-K and other filings with the SEC. This filing can be obtained on the SEC’s website at http://www.sec.gov . Known risks and uncertainties include but are not limited to: risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance, volatility in exchange rates and risks associated with domestic and foreign government regulation. The foregoing list of important factors is not exhaustive. The information contained in this news release reflects Telesat’s beliefs, assumptions, intentions, plans and expectations as of the date of this news release. Except as required by law, Telesat disclaims any obligation or undertaking to update or revise the information herein.

About Telesat (www.telesat.com)

Telesat is a leading global fixed satellite services operator providing reliable and secure satellite-delivered communications solutions worldwide to broadcast, telecom, corporate and government customers. Headquartered in Ottawa, Canada, with offices and facilities around the world, Telesat’s state-of-the-art fleet consists of 12 satellites and the Canadian Ka-band payload on ViaSat-1, plus one satellite preparing for launch and another under construction. Telesat also manages the operations of additional satellites for third parties. Privately held, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space Communications Inc. (Nasdaq:LORL).

CONTACT: Michael Bolitho,
         Telesat,
         +1 (613) 748-8700 ext. 2336
         (ir@telesat.com)

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Article source: http://www.msnbc.msn.com/id/47229811

Article source: http://www.kansascity.com/2012/04/29/3583477/review-shooter-jennings-cody-canada.html

An extraordinary transformation has occurred, or more precisely appeared above the waterline. It is a change so epochal, so profound, you’d think Canadians would be in the streets, cheering. But then, this is Canada: Celebratory back patting is not our cup of tea.

The big news, which will never make a bold headline, is just this: Across this country, from coast to coast to coast, there is now a nearly unanimous view that the old, divisive, angry debates about matters of individual faith and morals are over. And we’re not going back there. Not any time soon, probably not ever.

Discrimination based on race and gender and sexual orientation are history, too, for the most part. There are still racists, homophobes and gender-haters in Canada, of course. And there are aberrations (Afro-centric schools in Toronto, for example). But the shared expectation of equality under the law for all, is now so firmly embedded as to be foundational. This is something interesting, unique — and new.

We actually, finally may be living in a just society, as various past prime ministers dreamt we one day would. Not only that, but we live in a society in which the shared idea of equal rights spans the political spectrum, and also our country’s vast geography.

Too Pollyannaish by half? It sounds it. But consider the facts on the ground.

Last fall, Ontario Progressive Conservative leader Tim Hudak was poised to depose the weary, idea-bereft Liberal government of Dalton McGuinty in a rout — or so the polls suggested. Then Hudak made his campaign about ethnicity — pitting native-born Canadians (mainly of European origin), against immigrants, (mainly of Asian, South Asian or African origin), referring to the latter as “foreigners� and griping about subsidies given to companies who hire them.

The strategy backfired spectacularly, derailing Hudak’s campaign. It was eerily reminiscent of the gaffe made by Hudak’s predecessor, John Tory, in 2007, when he went to the mat for more public funding of separate religious schools. Ontarians turned thumbs down on that for the same reason: It smacked of discrimination.

A week ago in Alberta, voters delivered a similar message. Wildrose leader Danielle Smith, leading in the polls, was side-swiped by “bozo outbreaks� among her candidates. In responding to the remarks, one directed at gays and the other racially tinged, Smith failed to forcefully denounce them.

She expected, no doubt, that her repeated, categorical statements that she is pro-choice, pro-gay-marriage and adamantly opposed to any kind of discrimination, would be enough to smooth the waters. It wasn’t. Albertans heard a whiff of something they didn’t like and returned Alison Redford’s Progressive Conservatives with a huge majority.

In Parliament last week, Conservative backbench MP Stephen Woodworth caused a furor with a motion to strike a committee to consider when a human life, for purposes of the Criminal Code, begins. If life is determined to begin before birth, of course, then abortion de facto becomes illegal.

Woodworth’s motion has no chance of success: All four major federal parties are united against him. And this is the truly astonishing thing: Both Prime Minister Stephen Harper and Gordon O’Connor, the Conservative whip, denounced his motion.

“Society has moved on and I don’t believe this proposal should proceed,� O’Connor said. “As well, it is in opposition to our government’s position.�

It is impossible to know whether senior Conservatives would have spoken out as clearly before last Monday’s Alberta surprise, which revealed the temper of their base. It’s also irrelevant. We now have a consensus, a national one, that Canada is a uniformly socially progressive nation and will remain so. (Quebec and British Columbia have always been more progressive than either Ontario or Alberta, as regards social issues.)

Liberals will wish to take credit for this, attributing it to Pierre Trudeau’s baby, the Charter of Rights and Freedoms.

“The dialogue between the courts and Parliament has become a dialogue between courts that enforce the charter, and Parliament that has smaller and smaller numbers of people who are prepared to talk back to the charter,� is how veteran Liberal strategist John Duffy puts it.

Conservatives will point out that it was John Diefenbaker, himself a victim of anti-German racism in his youth, who introduced the Canadian Bill of Rights, precursor to the charter. Progressive values are thus a legacy of both Liberals and Conservatives.

“It’s partly the charter, and it’s partly the maturity of the population,� says veteran Conservative strategist Geoff Norquay. “A broadly based social consensus has emerged on the so-called hot-button issues, which says, we decided that . . . . I recognize you may hold personal views at odds with the majority, but we’re not going back there.�

For anyone who remembers the highly charged debates of the 80s, and 90s, and even those in the first decade of this century, this is truly remarkable.

mdentandt(at)postmedia.com

Twitter.com/mdentandt

Article source: http://www.canada.com/news/Tandt+Canada+socially+progressive+values+stretch+from+coast+coast/6537774/story.html

Canada plans to change its foreign
takeover legislation to make reviews more transparent as it
seeks to assure business the country remains open to investment.

The changes, introduced April 26 as part of a budget bill,
will allow the industry minister to publicly explain why an
acquisition has been blocked as long as the information doesn’t
cause harm to the businesses involved, Industry Canada said in a
news release April 27.

Prime Minister Stephen Harper is seeking to strengthen
investor confidence in the review process amid criticism the
system is unpredictable, after his government rejected a hostile
takeover bid for Potash Corp. of Saskatchewan Inc. by BHP
Billiton Ltd (BHP) in 2010. Harper has said that decision stemmed from
unique circumstances.

Under Canada’s foreign-takeover law, known as the
Investment Canada Act, the government reviews foreign takeovers
valued at more than C$330 million ($336 million) in assets to
ensure the transaction represents a “net benefit’ to the
nation.

Canada’s system for weighing takeovers is ‘‘highly
subjective and unpredictable,” the Toronto-based C.D. Howe
Institute said in a study released in December. The rules may
have contributed to the decline in Canada’s share of global
foreign-direct investment, it said.

The changes will allow the government to disclose when the
industry minister has sent a preliminary notice to an investor
that that an acquisition isn’t a “net benefit” to the
country. The department also said the changes will allow the
minister to “accept security” for payment of any court-ordered
penalties for contravention of the Investment Canada Act by
investors.

The amendments are included in a bill introduced April 26
by Finance Minister Jim Flaherty to implement measures in the
March 29 budget.

Compliance Policy

Money Market Funds May Face Tougher Regulation in IOSCO Plan

Global regulators are weighing tougher rules for money
market funds over concerns that they may amplify future
financial crises.

“Confidence shocks” in such funds can “quickly have a
broader macroeconomic impact,” the International Organization
of Securities Commissions said in a document published April 27
on its website.

Options being considered by regulators include imposing
stricter liquidity requirements on money market funds, and
reducing their reliance on credit ratings, IOSCO said.

IOSCO, based in Madrid, is seeking views on the plans until
May 28.

Brazil National Monetary Council Simplifies Bank Branch Rules

Brazil’s national monetary council approved a resolution to
simplify rules governing local branches, the bank said in a
statement published April 27.

The head of central bank’s regulatory department, Sergio
Odilon dos Anjos, said the measure could reduce banks’ costs by
allowing them to choose the size of their local operations in
line with local demand.

Iran Disclosure Rule Now Being Developed By SEC, Chairman Says

Companies may be required to disclose their dealings with
Iran under a rule being worked on by the U.S. Securities and
Exchange Commission that could expose them to sanctions, the
agency chairman told a congressional committee, BNA reported.

SEC Chairman Mary Shapiro said April 25 in a hearing before
the Capital Markets Subcommittee of the House Committee on
Financial Services that the agency’s staff is “well under way”
in developing the rule.

The Senate Appropriations Committee, in a report that
accompanied its appropriations bill for the 2012 fiscal year,
directed the SEC to issue final rules under the Iran Sanctions
Act of 1996.

The Appropriations Committee is concerned that companies
have broad discretion under current SEC regulations to decide if
disclosure of their activities is required “with respect to
business interests in or with a state sponsor of terrorism,”
the report said.

China Reviews Plan to Lower Stock Trading Fees, Regulator Says

China is studying and reviewing a proposal to lower fees
and costs for stock trading, the China Securities Regulatory
Commission said in a statement posted on its website April 27,
without elaborating.

Separately, China published proposed rules earlier this
month to encourage fund-management companies to regulate
purchases by managers of funds that they or their employers run.

The rules will also allow employees of fund-management
companies to invest in closed-end funds using non-stock accounts
and cancel time limits on holding money-market and cash-
management funds, the commission said in statement.

Compliance Action

Dewey Leboeuf Said to Be Probe Subject as Deadline Nears

Dewey Leboeuf LLP, the New York law firm fighting to stay
alive after more than 70 partners left, is the subject of a
criminal probe by state prosecutors into whether managers misled
partners about payments due them, a person familiar with the
matter said.

The investigation by Manhattan District Attorney Cyrus
Vance Jr. is in a preliminary stage and has yet to determine
whether a crime has been committed, said the person, who
declined to be identified because the matter isn’t public.

Dewey, the No. 3 law firm adviser to banks handling merger
deals, faces an April 30 deadline to show bank lenders it has a
survival plan, possibly including absorption by another firm or
cost-cutting.

The law firm has lost about 72 partners in recent months
amid complaints about pay and a plan to restructure the firm. It
has drawn about $75 million of a $100 million credit line from
banks including JPMorgan Chase Co. (JPM) and Citigroup Inc., (C)
according to a person familiar with the firm’s finances. The
banks extended an initial April 16 deadline to come up with a
plan, according to a person familiar with a merger proposal
Dewey has presented to other law firms.

Erin Duggan, a spokeswoman for Vance, declined to comment.
Angelo Kakolyris, a spokesman for Dewey, didn’t return a call
seeking comment on the probe. When reach April 26 he declined to
comment on the deadline.

In addition to the bank deadline, the firm also has $125
million in bonds sold to insurance companies in 2010 to
refinance previous bank loans.

Dewey placed 28th in American Lawyer’s ranking of the
largest 100 law firms, with 190 partners and 2011 revenue of
$782 million.

For more, click here.

EU Lawmakers to Vote on Basel Bank Law on May 14, Bowles Says

The European Parliament will vote on a bill that sets bank-
capital rules for the 27-nation bloc on May 14, Sharon Bowles,
chairwoman of the parliament’s economic and monetary affairs
committee, said in an interview in Brussels April 27.

JPMorgan, Goldman CEOs to Meet with Fed on Rule, WSJ Says

JPMorgan CEO Jamie Dimon has organized a meeting of bank
CEOs with Federal Reserve Governor Daniel Tarullo, the Wall
Street Journal reported, citing people it didn’t identify who
were familiar with situation.

The meeting set for May 2 in New York and is expected to
include Dimon as well as CEOs from Goldman Sachs (GS), Morgan
Stanley, and Bank of America. The focus will be the proposal by
the Federal Reserve to limit banks’ exposure to other firms and
government, according to the people, the newspaper reported.

The draft rule would impact banks with derivatives
businesses because it would limit net credit exposures between
any two of the nation’s largest banks, according to the
newspaper.

The bankers plan to tell regulators that the rule is based
on unrealistic standards and may spur “potentially
destabilizing” market shifts, the paper wrote, citing two draft
letters it obtained.

Courts

Lehman Unit’s Swap Side Deal Not Worth $1 Billion, Court Rules

Lehman Brothers Finance SA won a U.K. case over a side
agreement tied to over-the-counter derivatives with Lehman
Brothers International Europe, which had valued it at as much as
$1 billion.

Judge Michael Briggs in London ruled April 27 in favor of
the Swiss-based-affiliate that the so-called side letter, linked
with an International Swaps and Derivatives Association master
agreement, had no value.

“The insolvency has thrown up a number of cases where ISDA
clauses are, for the first time, being tested by the courts,”
Guy Usher, a lawyer at Field Fisher Waterhouse who represented
Lehman Brothers Finance, said in a statement. He described the
decision as “very significant” for the Lehman Brothers Finance
estate.

The swaps terminated automatically when LBF defaulted by
filing for bankruptcy. LBIE, the London-based unit of Lehman
Brothers Holdings Inc., had argued the net close-out amount on
the transaction — covering about 12,000 equity-derivative
trades — should have favored it by $1 billion.

Lawyers for the LBIE didn’t immediately return calls
requesting comment.

A U.K. appeals court earlier this month rejected an appeal
from administrators at two units of the New York-based parent,
saying they couldn’t force buyers of interest-rate swaps to make
payments arising from the period after the bank’s 2008 collapse.

At the time of Lehman’s collapse, it had more than 900,000
derivative contracts outstanding.

Interviews

Donahue Opposes SEC’s Proposed Money Fund Rules

Christopher Donahue, chief executive officer of Federated
Investors Inc. (FII), talked about the U.S. Securities and Exchange
Commission’s proposal for new rules governing the $2.6 trillion
U.S. money market fund industry.

Donahue spoke on Bloomberg Television’s “InBusiness with
Margaret Brennan.”

For the video, click here.

To contact the reporter on this story:
Carla Main in New Jersey at
cmain2@bloomberg.net.

To contact the editor responsible for this report:
Michael Hytha at mhytha@bloomberg.net.

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Article source: http://www.bloomberg.com/news/2012-04-30/canada-foreign-takeovers-dewey-probe-brazil-banks-compliance.html

Canada plans to change its foreign
takeover legislation to make reviews more transparent as it
seeks to assure business the country remains open to investment.

The changes, introduced April 26 as part of a budget bill,
will allow the industry minister to publicly explain why an
acquisition has been blocked as long as the information doesn’t
cause harm to the businesses involved, Industry Canada said in a
news release April 27.

Prime Minister Stephen Harper is seeking to strengthen
investor confidence in the review process amid criticism the
system is unpredictable, after his government rejected a hostile
takeover bid for Potash Corp. of Saskatchewan Inc. by BHP
Billiton Ltd (BHP) in 2010. Harper has said that decision stemmed from
unique circumstances.

Under Canada’s foreign-takeover law, known as the
Investment Canada Act, the government reviews foreign takeovers
valued at more than C$330 million ($336 million) in assets to
ensure the transaction represents a “net benefit’ to the
nation.

Canada’s system for weighing takeovers is ‘‘highly
subjective and unpredictable,” the Toronto-based C.D. Howe
Institute said in a study released in December. The rules may
have contributed to the decline in Canada’s share of global
foreign-direct investment, it said.

The changes will allow the government to disclose when the
industry minister has sent a preliminary notice to an investor
that that an acquisition isn’t a “net benefit” to the
country. The department also said the changes will allow the
minister to “accept security” for payment of any court-ordered
penalties for contravention of the Investment Canada Act by
investors.

The amendments are included in a bill introduced April 26
by Finance Minister Jim Flaherty to implement measures in the
March 29 budget.

Compliance Policy

Money Market Funds May Face Tougher Regulation in IOSCO Plan

Global regulators are weighing tougher rules for money
market funds over concerns that they may amplify future
financial crises.

“Confidence shocks” in such funds can “quickly have a
broader macroeconomic impact,” the International Organization
of Securities Commissions said in a document published April 27
on its website.

Options being considered by regulators include imposing
stricter liquidity requirements on money market funds, and
reducing their reliance on credit ratings, IOSCO said.

IOSCO, based in Madrid, is seeking views on the plans until
May 28.

Brazil National Monetary Council Simplifies Bank Branch Rules

Brazil’s national monetary council approved a resolution to
simplify rules governing local branches, the bank said in a
statement published April 27.

The head of central bank’s regulatory department, Sergio
Odilon dos Anjos, said the measure could reduce banks’ costs by
allowing them to choose the size of their local operations in
line with local demand.

Iran Disclosure Rule Now Being Developed By SEC, Chairman Says

Companies may be required to disclose their dealings with
Iran under a rule being worked on by the U.S. Securities and
Exchange Commission that could expose them to sanctions, the
agency chairman told a congressional committee, BNA reported.

SEC Chairman Mary Shapiro said April 25 in a hearing before
the Capital Markets Subcommittee of the House Committee on
Financial Services that the agency’s staff is “well under way”
in developing the rule.

The Senate Appropriations Committee, in a report that
accompanied its appropriations bill for the 2012 fiscal year,
directed the SEC to issue final rules under the Iran Sanctions
Act of 1996.

The Appropriations Committee is concerned that companies
have broad discretion under current SEC regulations to decide if
disclosure of their activities is required “with respect to
business interests in or with a state sponsor of terrorism,”
the report said.

China Reviews Plan to Lower Stock Trading Fees, Regulator Says

China is studying and reviewing a proposal to lower fees
and costs for stock trading, the China Securities Regulatory
Commission said in a statement posted on its website April 27,
without elaborating.

Separately, China published proposed rules earlier this
month to encourage fund-management companies to regulate
purchases by managers of funds that they or their employers run.

The rules will also allow employees of fund-management
companies to invest in closed-end funds using non-stock accounts
and cancel time limits on holding money-market and cash-
management funds, the commission said in statement.

Compliance Action

Dewey Leboeuf Said to Be Probe Subject as Deadline Nears

Dewey Leboeuf LLP, the New York law firm fighting to stay
alive after more than 70 partners left, is the subject of a
criminal probe by state prosecutors into whether managers misled
partners about payments due them, a person familiar with the
matter said.

The investigation by Manhattan District Attorney Cyrus
Vance Jr. is in a preliminary stage and has yet to determine
whether a crime has been committed, said the person, who
declined to be identified because the matter isn’t public.

Dewey, the No. 3 law firm adviser to banks handling merger
deals, faces an April 30 deadline to show bank lenders it has a
survival plan, possibly including absorption by another firm or
cost-cutting.

The law firm has lost about 72 partners in recent months
amid complaints about pay and a plan to restructure the firm. It
has drawn about $75 million of a $100 million credit line from
banks including JPMorgan Chase Co. (JPM) and Citigroup Inc., (C)
according to a person familiar with the firm’s finances. The
banks extended an initial April 16 deadline to come up with a
plan, according to a person familiar with a merger proposal
Dewey has presented to other law firms.

Erin Duggan, a spokeswoman for Vance, declined to comment.
Angelo Kakolyris, a spokesman for Dewey, didn’t return a call
seeking comment on the probe. When reach April 26 he declined to
comment on the deadline.

In addition to the bank deadline, the firm also has $125
million in bonds sold to insurance companies in 2010 to
refinance previous bank loans.

Dewey placed 28th in American Lawyer’s ranking of the
largest 100 law firms, with 190 partners and 2011 revenue of
$782 million.

For more, click here.

EU Lawmakers to Vote on Basel Bank Law on May 14, Bowles Says

The European Parliament will vote on a bill that sets bank-
capital rules for the 27-nation bloc on May 14, Sharon Bowles,
chairwoman of the parliament’s economic and monetary affairs
committee, said in an interview in Brussels April 27.

JPMorgan, Goldman CEOs to Meet with Fed on Rule, WSJ Says

JPMorgan CEO Jamie Dimon has organized a meeting of bank
CEOs with Federal Reserve Governor Daniel Tarullo, the Wall
Street Journal reported, citing people it didn’t identify who
were familiar with situation.

The meeting set for May 2 in New York and is expected to
include Dimon as well as CEOs from Goldman Sachs (GS), Morgan
Stanley, and Bank of America. The focus will be the proposal by
the Federal Reserve to limit banks’ exposure to other firms and
government, according to the people, the newspaper reported.

The draft rule would impact banks with derivatives
businesses because it would limit net credit exposures between
any two of the nation’s largest banks, according to the
newspaper.

The bankers plan to tell regulators that the rule is based
on unrealistic standards and may spur “potentially
destabilizing” market shifts, the paper wrote, citing two draft
letters it obtained.

Courts

Lehman Unit’s Swap Side Deal Not Worth $1 Billion, Court Rules

Lehman Brothers Finance SA won a U.K. case over a side
agreement tied to over-the-counter derivatives with Lehman
Brothers International Europe, which had valued it at as much as
$1 billion.

Judge Michael Briggs in London ruled April 27 in favor of
the Swiss-based-affiliate that the so-called side letter, linked
with an International Swaps and Derivatives Association master
agreement, had no value.

“The insolvency has thrown up a number of cases where ISDA
clauses are, for the first time, being tested by the courts,”
Guy Usher, a lawyer at Field Fisher Waterhouse who represented
Lehman Brothers Finance, said in a statement. He described the
decision as “very significant” for the Lehman Brothers Finance
estate.

The swaps terminated automatically when LBF defaulted by
filing for bankruptcy. LBIE, the London-based unit of Lehman
Brothers Holdings Inc., had argued the net close-out amount on
the transaction — covering about 12,000 equity-derivative
trades — should have favored it by $1 billion.

Lawyers for the LBIE didn’t immediately return calls
requesting comment.

A U.K. appeals court earlier this month rejected an appeal
from administrators at two units of the New York-based parent,
saying they couldn’t force buyers of interest-rate swaps to make
payments arising from the period after the bank’s 2008 collapse.

At the time of Lehman’s collapse, it had more than 900,000
derivative contracts outstanding.

Interviews

Donahue Opposes SEC’s Proposed Money Fund Rules

Christopher Donahue, chief executive officer of Federated
Investors Inc. (FII), talked about the U.S. Securities and Exchange
Commission’s proposal for new rules governing the $2.6 trillion
U.S. money market fund industry.

Donahue spoke on Bloomberg Television’s “InBusiness with
Margaret Brennan.”

For the video, click here.

To contact the reporter on this story:
Carla Main in New Jersey at
cmain2@bloomberg.net.

To contact the editor responsible for this report:
Michael Hytha at mhytha@bloomberg.net.

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Article source: http://www.bloomberg.com/news/2012-04-30/canada-foreign-takeovers-dewey-probe-brazil-banks-compliance.html

AGASSIZ, British Columbia, April 29 (UPI) — A woman trying hang gliding for the first time fell about 1,000 feet to her death in Canada this weekend, officials said.

The Canadian Broadcasting Corp. reported Sunday Lenami Godinez, 27, fell into a clearing shortly after takeoff Saturday at Mount Woodside near Agassiz, British Columbia. Her body was recovered Saturday evening.

Jason Warner of the Hang Gliding and Paragliding Association told QMI Agency Godinez was with an instructor during the tandem takeoff, but something quickly went wrong.

“It happened within less than 30 seconds, he knew just after takeoff something was wrong. She was holding on, grabbing the bar. Everything was different,” he said.

The cause of the accident had not been determined, but investigators were looking into equipment failure or pilot error as contributing factors.The woman’s boyfriend filmed the takeoff, but investigators could not determine the cause of the accident from the footage, QMI Agency reported.

“At this point it looks like a really, really sad horrific accident,” Royal Canadian Mounted Police Sgt. Mark Pelz said.

Godinez, who was from Mexico, had lived in Canada for nine years and was an administrator for the provincial government, the CBC said.

Article source: http://www.upi.com/Top_News/World-News/2012/04/29/Woman-dies-in-hang-gliding-accident/UPI-17191335746105/

TORONTO, ONTARIO–(Marketwire -04/04/12)- Canadian financial executives believe greater concern around risk management will increase demands on audit committees in the next 24 months, resulting in heightened pressures on company CFOs. Participants in a new research study by the Canadian Financial Executives Research Foundation (CFERF), point to the turmoil in the capital and debt markets to explain this renewed emphasis on risk management. The CFO and the audit committee study is sponsored by KPMG LLP.

The CFO and the audit committee study highlights include:

 

--  Organizations expected to be at the forefront of increased demands on    audit committees include accounting standards setters and securities    regulators--  90 percent of respondents reported the CFO of their organization had an    excellent relationship with the company's audit committee, a    relationship that is based on trust and transparency--  69 percent of respondents were happy with the approach of their audit    committees, reporting the committees are neither over-involved nor    under-involved--  83 percent disagreed with the suggestion that the CFO has an 'us versus    them' relationship with their audit committee

“The study shows that CFOs need to help board directors, and audit committee members in particular, better understand the business challenges that their organizations are facing, while demonstrating the fortitude to withstand the oversight of their performance by the audit committee,” said Michael Conway, Chief Executive and National President of FEI Canada.

Despite this increased scrutiny from the audit committee, overall, financial executives are confident when fielding tough questions and engaging in difficult conversations at audit committee meetings. A majority also agreed that their audit committee members request information in a reasonable time frame.

“The nature of the CFO-audit committee relationship is clearly of strong interest to financial executives,” said Todd Buchanan, National Leader, Accounting Advisory Services, KPMG LLP. “The study shows that successful audit committee relationships feature trust, respect, professionalism, collaboration, openness and transparency.”

About the Survey

An online survey of 199 financial executives, some of whom have also served on audit committees, formed the basis for the study by CFERF, the research arm of Financial Executives International Canada (FEI Canada). The CFO and the audit committee, which includes insights gathered during a roundtable discussion of senior financial executives, explores the current state of the relationship between the two and how CFOs communicate in order to assist the audit committee in fulfilling their agenda effectively.

About Financial Executives International Canada (FEI Canada)

FEI Canada is the all-industry professional membership association for senior financial executives. With 11 chapters across Canada and more than 1,800 members, FEI Canada provides professional development, thought leadership and advocacy services to its members. The association membership, which consists of Chief Financial Officers, Audit Committee Directors and senior executives in the Finance, Controller, Treasury and Taxation functions, represents a significant number of Canada’s leading and most influential corporations. Further information can be found at www.feicanada.org.

About KPMG

KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative (“KPMG International”). KPMG member firms around the world have 145,000 professionals, in 152 countries.

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.

Article source: http://finance.yahoo.com/news/cfos-audit-committees-soon-feel-113000937.html

Sun Apr 29, 2012 3:30pm BST

* Top 4 Canadian insurers all seen profitable in quarter

* Firm stock markets, rising yields likely boosted profits

* Shares expected to struggle after recent gains

By Cameron French

TORONTO, April 29 (Reuters) – Stronger stock markets and
rising bond yields likely stoked profits at Canada’s life
insurers during the first quarter, but a recent market reversal
suggest the insurers’ shares will struggle to build on recent
gains.

Top player Manulife Financial will kick off the
sector’s results on Thursday and is expected to post a profit of
32 Canadian cents a share, according to Thomson Reuters I/B/E/S.
That represents an improvement on losses in both the third and
fourth quarters of 2011.

“It’ll be the first quarter where we’ve had uniform positive
EPS (earnings per share) across the sector in three quarters. In
that sense it will be a very good quarter,” National Bank
Financial analyst Peter Routledge.

Routledge then added the caveat: “But that’s
backwards-looking.”

With stock indexes and bond yields having come substantially
off their first-quarter peaks, investors are unlikely to be
impressed by the stronger results, he said, as renewed market
weakness points to more hardship in the second quarter.

“It’ll be a good quarter, but no one will be worried about
that, they’ll be worried about what risks still exist,” he said.

Under Canadian accounting rules, life insurers must keep
adjusting their projected returns from the huge investment
portfolios that back their policy obligations. Negative market
moves force them to take reserves out of profits.

In the first quarter, the SP/TSX composite index
rose 3.7 percent, its best quarterly gain since early 2011. And
Canada’s 10-year bond yield, which hit a
multi-decade trough of 1.84 percent in December, climbed to a
2012 high of 2.3 percent in March.

The moves in both markets will pad insurer results.

But since the end of March, investors have taken fright from
fresh signs of trouble in Europe’s debt crisis and unexpectedly
weak U.S. economic data. This has sent Toronto stocks down more
than 1 percent this month. Bond yields have dropped as investors
have shifted back into the safe-haven market.

With the companies’ shares still more or less riding the
euphoria of the early market rise, analysts warn the stage could
be set for a retracement.

“We believe the stocks have likely captured the upside
sentiment going into results, so a miss could be met with a
near-term sell-off,” Scotia Capital analyst Joanne Smith said in
a note.

YEAR-TO-DATE STRENGTH

Manulife shares are up 26 percent year to date, while Sun
Life Financial has risen 29 percent, and Industrial
Alliance is up 20 percent.

Great-West Lifeco, which has a much smaller
exposure to markets than its rivals, is up 22 percent.

While the percentage gains sound lofty, the climb is from
the multi-year lows the stocks hit late last year, and the
shares of all four insurers are substantially below their levels
of 12 months ago.

“We’re sort of playing it like a call on the markets, if you
like, rather than the nitty gritty day-to-day core businesses,”
said Caldwell Securities portfolio manager John Kinsey, who
recently bought shares of Sun Life and Manulife.

CORE IMPROVEMENTS, HEDGING

While the insurers’ results are still dependent on market
moves, the volatility has come down substantially from two years
ago due to hedging by the companies, as well as a repositioning
away from market-sensitive businesses.

Indeed, analysts say the core operations of the companies
are improving, and they have been heartened by developments such
as Sun Life’s stated objective last month to boost its operating
income to C$2 billion by 2015 from C$104 million last year.

Many think the quality of the insurers’ businesses is high.
Manulife, for instance, is dominant in Canada, growing in Asia,
and owns U.S. insurer John Hancock. And while the companies’
share prices may be a bargain compared with that quality,
analysts say investors may be jumping the gun by buying on
recent market moves.

“I don’t think you need to aggressively chase these things,
when they are trading at premiums to book value,” said Robert
Sedran, an analyst at CIBC World Markets.

“I think we’re in a market where a lot of these macro risks
that they’re dealing with haven’t vanished.”

(Editing by Jeffrey Hodgson and Peter Galloway)

Article source: http://uk.reuters.com/article/2012/04/29/canada-column-markets-idUKL2E8FNFSY20120429?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews

TORONTO, April 29 |
Sun Apr 29, 2012 11:59am EDT

TORONTO, April 29 (Reuters) – Efforts to reform the world
financial system to prevent a crash like the one that helped
trigger the 2008 recession are half complete, and the challenge
now is not to lose the momentum, Bank of Canada Governor Mark
Carney said on Sunday.

In an interview with Canada’s Global TV, Carney, who also
heads the international Financial Stability Board set up to fix
financial systems, said it would take European countries months
or years to rebuild their economies and financial systems.

“We made a lot of progress in building capital in the banks
internationally, we made progress improving liquidity, we’re
making progress in making derivatives and other markets more
resilient and safer,” Carney said in the interview, which ran on
Global’s The West Block.

“I would say we’re a little more than half way along this
process of financial reform and this is really the tough bit
because this is where, you know, momentum could flag.”

The FSB is working with countries and banks to agree on
reforms that will make the global financial system more
transparent and prevent problems in the future, and Carney
admitted the changes would hit bank profits – a possible reason
for the pushback.

He said European countries would need sustained efforts to
improve competitiveness, fix banks and balance budgets.

“It’s not going to be measured in the course of weeks or
weekends, it’s going to be measured in the course of months and
years,” he said. “These are big sustained reforms that are going
to be required. There is going to be political difficulties that
are associated with that.”

But Carney said he expected the main problems to be
contained within Europe, and the near-term knock-on effect on
Canada was likely to be limited.

Carney repeated his warnings that domestic interest rates
were bound to rise from current record-low levels, with likely
problems for those borrowing heavily to get into a still hot
housing market.

“Interest rates eventually are going to rise so as you’re
taking on longer term debt, keep that in mind,” he said.

“What we’re really concerned about on an individual basis
is, it’s the people that come in at the end of the condo-boom,
if you will. It’s the people who stretch for that last dollar to
get the house, that they’re the ones who are the most impacted
by this situation.”

Canada escaped the housing price implosion seen in many U.S.
markets, and while prices dipped during Canada’s short-lived
recession, they soon recovered to well above pre-recession
levels, fueled by mortgage rates that have occasionally edged
just below 3 percent.

The government has already tightened rules at the Canada
Mortgage and Housing Corp, which provides mortgage insurance,
and Finance Minister Jim Flaherty said on Saturday that more
changes were possible.

Article source: http://www.reuters.com/article/2012/04/29/canada-fsb-carney-idUSL1E8FT0KD20120429