Posting a $213 million loss (Bermuda segment alone had a net loss of $208.4 million) for 2009, the Butterfield Bank is scrambling.

The CFO is replacing the CEO, they've suspended dividend payments and have taken $550 million from offshore investors to prop up the bank.

Canadian Imperial Bank of Commerce is picking up 22.5 per cent of Butterfield's equity for $150 million, and will nominate two directors to its board.  Indirectly through an investment in the Carlyle Group (who is picking up the lions share of the rest of the infusion) the CIBC is contributing another $26 million.

A drop in the bucket for the CIBC which posted a net income of $644 million CAD for the fourth quarter of 2009... for a year total North of $1.2 billion CAD net income.

Where was my mate's prophetic story about expats taking over Bermuda?   

It already has boken loose my friend....you don't get all the news in the papers.

And, once again, who is supposed to be regulating this stuff so it doesn't explode like this? The BMA...yes, I think that's them...BAICO, BNTB, what's next?

 

Mike, tell your friend he was right!

Details of the $130 million rights offering announced yesterday played havoc with the Bank's share price:

opened at $2.40
by 10.40 a.m. $2.75
by 11.40 a.m. $1.75
12.30 p.m. $2.50
end of day... $1.75

I loved this amazing bit of insight regarding Butthead Bank from Bermuda Stock Exchange CEO Greg Wojciechowski: "On balance, all things considered, I think as things move along and management does the right things then only time will tell".

No wonder the Island sucks, with such great thinkers in charge of important institutions like the stock exchange.   

What a vacuous moron! 

C'mon Greg - get some nuts and just say you know the bank is screwed.  What is that expression about keeping your mouth shut being better than saying something and confirming how dumb you really are?