This webinar will examine a case study of how liquidity and credit and evaporate when a company loses its credibility and the trust of its creditors. In 2017 alternative mortgage lender Home Capital Group faced a run on the bank. It had been slow to release news that some of its mortgages had been granted on the basis of fraudulent income statements, submitted by mortgage brokers. When the OSC brought charges against the company, depositors panicked and withdrew billions of dollars from company accounts and investment certificates. Home Capital faced a near-death experience as its liquidity dried up and its stock price dropped by 90%.
CCP and ACI members earn 10 Professional Development Points for attending this event.