Laurentian Bank needs to solidify a message quickly: Portfolio manager

Bryden Teich, partner and portfolio manager at Avenue Investment Management, joins BNN Bloomberg for his view on the latest company news out of Canada. Teich says the rally we saw in Laurentian Bank earlier this year was probably short covering related rather than investors gaining interest in the bank.

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[bipolarpunt]

At least Laurentian was high on the Diversity rating. Lets keep whats important important.

[markrussell]

An essential wake up call for progressives in the C Suite. This wasn't hard to see coming. During her illustrious leadership (less that 18 months) the Bank essentially determined they would not do business with Oil & Gas Industry, placed a focus "beyond the numbers" emphasizing ESG, turned over more than 30% of staff and placed emphasis on diversity over competence when it comes to hiring. Added bonus - she was committed to a work-from-home-first model while potentially shifting focus to being more of a retail bank? Bottom-line is the bottom line in banking. Her vision resulted in ZERO interest when they sought to "cut and run" and seek to merge with another bank. Women make great leaders but it still requires competence. This persons lack of competence was demonstrated early on and you better be good and have a clue before you decide you are going to be super progressive. When your IM/IT infrastructure fails - it is pretty clear you are focusing on the wrong things. Sadly, this whole fiasco doesn't do much to promote more women at senior levels and that isn't good because there are loads the should be.

[emeral]

I have two conflicting reports, one says she resigned the other says she was ousted.

[johnemery]

The takeover rumour was interesting. None of the major 5 banks was interested in taking it over. I don't know if it is interesting at $27 but it may very well be. Something happens to change one of the Big Five bank's mind about Laurentian and it could very well see $40 again.

[tigalbaby]

Will not be surprised if another sale is being contemplated. Outgoing CEO was against selling . New leaders may be more amenable to this path. Question naturally is what price ?

[RRover.]

If she has left due to the IT mainframe outage on her watch she is 1000 times more honourable than anyone in the Liberal party of Canada including its smug leader Trudeau.

[davidmanchester]

I love how the analyst actually explained why the bank proposed to go private in a sale as financial engineering to scare off the shorts. The host is like "you're not supposed to explain the inner workings of the market to the plebs."