Thursday, December 2, 2010

CIBC Historical Effective Prime Rate, another nail in the coffin of the BC Rail trial

Updated Prime Interest Rate for CIBC:  Current prime rate 2.70% as of July 16, 2015

During what is known as the Basi, Virk, Basi trial, a question was posed by Kevin McCullough, the lawyer for Bobby Virk, to Crown Witness Brian G. Kenning, on what was the going interest rate on an indemnity ($255 million), to which the reply came back that he had no idea, besides, the Board of Directors for BC Rail didn't put that into the agreement when it came to clinching the deal on the sale of BC Rail to CN Rail.   Who did?   The government of Gordon Campbell, of course.

For a layperson to go looking for the going prime rate, whether it be on the internet or even going so far as to ask a bank for such historical data, the first method is FREE, the second..... well I'm quite sure there would be a price tag attached, especially during the trial.


Election BC to the rescue, not that I was looking for that particular data last night, a month and a half after the $6 million payoff, I just found it at their wonderful website while doing some Dry reading where every once in awhile something makes you go WOW!!!!.   The reason I was looking for this particular information was because I wanted to know how Elections BC counted political donations.  I've kindly highlighted in Bold below, "Prime Interest Rates".

http://www.elections.bc.ca/docs/fin/407.pdf    Prime Interest Rates

"Prime Interest Rates

If a loan to a political party, constituency association, candidate, leadership contestant or a nomination contestant is made at an interest rate less than the prime rate of the principal banker to the Province of British Columbia at the time the interest rate is fixed, the benefit derived is a political contribution. The interest rates that should be used when completing the Loans and Guarantees Received (S-L1) form to calculate the amount of interest payable at the prime rate are located at the following sites:
Historical interest rates – http://www.fin.gov.bc.ca/PT/bcm/histrates.shtml
Current interest rate – http://cibc.com/ca/rates/index.html

If you have any questions, please contact the Electoral Finance program area at
Elections BC."
 I clicked on the Historical interest rates without realizing there was "fin" in the link which took me to this page's contents:

"The Canadian Imperial Bank of Commerce (CIBC) is considered to be the Province’s principal banker for interest rate reference purposes. As the need to determine the prime rate of the Province’s banker arises under various enactments and instruments across government, the historical record of CIBC’s prime lending rate can be referenced below. The rates are listed from 1974 and will be updated on a periodic basis. Please refer to CIBC's Web site for the most recent rate.
View the Historical Effective Prime Rate table."

I went Hmmmmmm.   Canadian Imperial Bank of Commerce (CIBC) and wondered aloud as to whether CIBC World Markets was related to CIBC.   Would you make the same observation?   Would you be tempted to take the next step in the link to View the Historical Effective Prime Rate Table that goes back to 1974 and is updated on a periodic basis.   I did.

On page 2 of the document, top right corner... April 14, 2004, the going interest rate was 3.75%!!!!!

The indemnity that the Executive Council (Cabinet) signed off on the sale of BC Rail to CN Rail was a whopping 9%, and the really interesting thing is that the numbers show that the Prime Rate peaked on July 11, 2007 at 6.25%, and went into a steady decline, all through 2008, till September 9, 2010 at 3.00%.

So could you tell me this again, Premier Gordon Campbell, and Finance Minister Colin Hansen, and all those who are currently in the running to be the next Premier, via the BC Liberal Party, just when did you decide to implement the Harmonized Sales Tax?   Just when did the Deputy Minister of Finance become alerted to the need to Harmonize with the rest of Canada?

The government has plenty of graphs, plenty of GDP to compare to various streams of information, but just looking at the Prime Rate is good enough for me.

For more information on the background  on how the public was hosed:

http://pacificgazette.blogspot.com/2010/06/how-legitimate-exactly-is-railgate.html  The Gazetteer

http://therealstory.ca/2010-09-21/bc-liberals/bc-rail-how-badly-were-we-hosed  The Real Story

Last Update: January 13, 2014 still no change since September 9, 2010

CIBC Current prime rate 2.70% as of July 16, 2015 

5 comments:

RossK said...

Most excellent data mining there NVG.

.

lailayuile said...

Yes indeed, and may I say how exceedingly wonderful it is to see you blogging more regularly,NVG??

We need more like you to join the ranks,people who find the facts the are irrefutable. Well done.

Chinese Sneaker$ said...

Let me ask you: Are you saying that the move to the HST is connected, at least partly, to the huge tax indemnity owed by the BCCrown to CNR, and then, to the larger financial forces that were freezing capital markets where the BCCRown would normally have raised funds for operating in the red, and covering outstanding debt liabilities, but could not longer do so by the fall of '08--?

North Van's Grumps said...

Chinese Sneakers, all I'm saying is that in regards to the HST, the BC Liberals didn't need a radar to see the direction they were headed in. Unfortunately for them though, they set the wheels in motion for fixed election dates.

If the BC Liberals raised the HST for discussion during the election, they would have come pretty darn close to losing.

Fact is someone thought they were going to lose, that's why they shredded the documents that were required for the BC Rail trial. They thought that the NDP were going to win, find the documents and turn them over to the Court.


Take a look at this other graph that the BC Liberals generated, and their belief that things are about to turn and go up, it was designed before El Gordo promised us a 15% roll back on our personal income tax....

http://blogborgcollective.blogspot.com/2010/11/to-left-fiscal-plan-20082009-to-right.html

But it also mimics the prime rate percentage decline as well.

Anonymous said...

Well, the evil men do lives on, even after they do. This is absolutely true, regarding Campbell's time in power. Reading Rafe Mair's Common Sense Canadian, and the huge hydro project, in Bute Inlet. And reading, the First Nations People, are again having to battle Campbell, to stop the Enbridge pipeline through their lands, rivers and streams...And, to stop China's dirty oil tankers, from entering the coastal waters. Campbell did say, he would be here for some months. He also said, he would continue on with his work. Indeed he has, and, it's all dirty work, as usual.