Holy Wowzers: CIBC has $25 billion in monoline exposure
Canadian Imperial Bank of Commerce states that it had around $25 billion in monoline insurer exposure. For this most part, this had been suggested by analysts, many of whom were growing tired with CIBC’s lack of disclosure of the monoline exposure. While some disagree, this type of exposure may lead CIBC to raise even more capital than it already has to keep itself afloat and away from devastating margin calls. At risk, is the bank’s domestic retail bank which would first require the infusion of capital. CIBC hopes to allay these fears and a possible ‘run’ on the bank by retail consumers.