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Email this10:11 pm
August 4, 2010
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By the way, an update on the putative "unsound business model" caused by the "mere 19 basis points" gap on 5-year GIC/mortgage rates that Mr. Newman was so concerned about. Cambrian (the Achieva people) very helpfully disclose the interest rates on their assets and liabilities, grouped by maturity date ranges, in their 2011 financial statements. For the "4-5 years" group, their assets (mortgages and commercial loans) were returning 4.19% and their liabilities (GICs) paid out 3.47%, for a difference of 72 basis points (the overall margin seems around 100 bps).
This is pretty much identical to 2010 (2009 was 87 basis points), and they've actually reduced the gap between assets and liabilities for that maturity range. Whither Mr. Newman now… 
5:07 am
@tdium.. When I looked up who Newman was I came to the same conclusion.. Overblown to say the least..
2:14 pm
I read Cambrian's annual report each year, as well as monitor their quarterly financial updates to provide me peace of mind as an Achieva customer. They operate as a very profitable credit union, with a solid capital base and a deep history of holding among the highest rates consistently within the market.
David Newman reminds me of the same Newman from Seinfeld --- always on the make and very self-serving.
Good-Bye Newman.
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