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Laurentian Bank of Canada T.LB

Alternate Symbol(s):  LRCDF | LAUCF | T.LB.PR.H

Laurentian Bank of Canada (the Bank) is a Canada-based provider of financial services to its personal, commercial and institutional customers. The Bank operates in Canada and the United States. Its segments include Personal Banking, Commercial Banking and Capital Markets. The Personal Banking segment caters to the financial needs of retail clients. The Commercial Banking segment caters to the financial needs of business clients across Canada and in the United States and provides commercial banking, real estate financing, and equipment and inventory financing. The Capital Markets segment provides a range of services, including research, market analysis and advisory services, corporate underwriting for debt and equity, and administrative services. The Bank's clients can access its offering of financial advice, products and services through a network of branches in Quebec. The Bank offers a digital direct-to-customer platform to all Canadians. The Bank has approximately 57 branches.


TSX:LB - Post by User

Bullboard Posts
Comment by Northforce13on Jun 18, 2020 4:36pm
346 Views
Post# 31166706

RE:RE:About time

RE:RE:About timeI'd argue that this is all symptoms of the problem, which is the presence of a union.

LB's ROE has lagged other banks for decades, and in my opinion that is the reason.

Other banks might be very reluctant to acquire LB because doing so might import the union, which would be like injesting cancer. 

Any acquisition would have to get rid of the union, which I do not see as feasible.  An option would be to buy out the entire loan book, and leave the bank to be wound up and closed, which would put all the employees and union out of work and address the problem, as LB would be liquidated. 

This is pretty much the most likely and workable outcome that I can see, or a slow and constant decline and decay of its current situation.  

I'm not sure the share price is yet at a level where this would be an option, considering what windup costs would be if they were to sell off the entire loan portfolio and wind up the company.

I'm long EQB/HCG, two similar sized banks that aren't infected with cancer.


Bullboard Posts