About a couple of years agoAbout a couple of years ago I had quite the encounter with skywarp on this board. Debating Amicus and he was the hard core pumper on here. Well years latter the stock price sits lower despite being protected by competition thanks to the Canadian government. Money poured into huge payoffs for the bank execs while Canadians and the investors get the shaft. Here's an update Skywarp. We all know which of your aliases is you so let's hear a you were right Baytrader from you.
https://www.globeinvestor.com/servlet/ArticleNews/story/RTGAM/20021114/wbcibc
Breaking News from The Globe and Mail
CIBC shutters Amicus
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By TERRY WEBER
Thursday, November 14, 2002
Canadian Imperial Bank of Commerce said Thursday it is pulling the plug on its U.S. electronic banking operations.
The move affects CIBC National Bank and Amicus FSB, neither of which had lived up to earlier forecasts, the bank said in a brief statement.
"These operations were not meeting financial expectations," CIBC said.
The closings are subject to regulatory approval.
Last month, CIBC had annouced it would take $525-million in pre-tax restructing charges in the fourth quarter, $375-million of which was related to severely curtailing or entirely closing the money-losing U.S. operations of its Amicus consumer elctronic banking business.
CIBC National Bank provides financial services under the Marketplace Bank brand, and Amicus FSB operates under the Safeway Select Bank brand.
Customers with balances of $1,000 or more on the date of closing will be transferred to ETrade Bank, subject to regulatory approval.
"Customer deposits are secure and remain at all times FDIC-insured up to the applicable limits," CIBC said.
Those with loans and credit card accounts will still be serviced "in accordance with their existing terms unless transferred to another financial institution or otherwise closed," the bank said.
If those accounts are transferred to another institution, CIBC said, customers will get "appropriate notice."
Amicus has been losing about $60-million a quarter, with most of the losses stemming from the three-year-old U.S. operations, which have about 1,100 employees.
In the United States, Amicus sells banking services through 185 supermarkets operated by Winn-Dixie Stores Inc. of Jacksonville, Fla., and another 161 operated by Safeway Inc. of Pleasanton, Calif., but costs are still vastly outstripping revenue.
In Canada, where Amicus has been far more successful, its partner, through President's Choice Financial, is grocery giant Loblaw Cos. Ltd. of Toronto. CIBC officials emphasized following last month's announcement that this arrangement will not be affected by the U.S. development.
Earlier this month, the bank had said it was shuttering its bizSmart operation, a program of no-fee banking services for small businesses it launched two years ago.
The services were available over the Internet, by telephone and through outlets in 60 stores across Canada operated by office products retailer Business Depot Ltd. of Markham, Ont.
CIBC reports its fourth-quarter financial results on Nov. 27. At least some analysts have said they expect the bank to post a loss for the three-month period as a result of the recent charges. In last year's fourth quarter, the bank reported a profit of $242-million or 56 cents a share.
Copyright © 2002 The Globe and Mail