Laurie in Question Period
Treasury Branches Investments
Ms Blakeman: Thank you very much, Mr. Speaker. Yesterday the minister of finance gave full support to the decision by the ATB board to hand out bonuses to executives to the tune of $26 million. The minister also stated that the lost profits for the bank were from market failure and not performance failure and that due diligence had been done. Well, the Auditor General reads the situation differently. To the minister of finance: can the minister explain how ATB was diligent when investing in asset-backed commercial paper when the Auditor General has stated that “ATB did not fully understand the nature of the underlying assets” and the associated risks?
Ms Evans: Mr. Speaker, I very much believe that the Auditor General has a perspective and brings a solid perspective to the duties he does as Auditor General. What the hon. member is suggesting is that ATB was in some way less diligent in their research on this particular item. With the information available to almost every single, solitary banking institution in Canada, the major institutions, many people were involved in asset-backed commercial paper and have made an exemplary agreement to disengage. In no way are they derelict in their duty.
The Speaker: The hon. member.
Ms Blakeman: Thank you very much. To the same minister: does the minister also support the decision by the former CEO, who, according to the Auditor General, chose to set higher performance targets despite the warnings of increased risk and the objections from the previous Treasurer?
Ms Evans: Well, Mr. Speaker, the member of the opposition is delving into some history which, in fact, is not pertinent to the question here, which relates to former members, which relates to past practices, which are nothing that I have any detail on in this House, but I could certainly secure it if it was the pleasure of the House.
Ms Blakeman: Well, my final question to the minister, then, is: how can lessons be learned from this financial crisis if the board overrides its own policy, making obsolete the concept of consequences, and then receives the blessing of the minister and the finance department for doing so?
Ms Evans: You know, Mr. Speaker, I’ll bet that today there are millions and millions of people all over the world that are asking why we got into this market turmoil, that are looking at what’s happening in Europe, in Russia, in Brazil, in New York, and in Canada and are saying: “Oh, my goodness. Look at how well positioned they are in Canada. Look at how exemplary the track record is of ATB and the credit unions in Alberta.” They are astonished, I’m sure, to find out that the member of the opposition is questioning in this vein.
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