Power Corp. Has Restructured. Now It Just Needs To Reinvent Itself Through Its Fintech Ventures.

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OSFI: Transition to low-carbon economy will be ‘sharply negative’ BILL CURRY OTTAWA

Canada’s banking regulator says the financial sector should assume the transition to a low-carbon economy will be “sharply negative.” Jeremy Rudin, who heads the Office of the Superintendent of Financial Institutions, has outlined his views on the potential for job losses and reduced corporate profits in a move away from fossil fuels. In a recent speech, Mr. Rudin said it is hard to predict how the transition will affect the Canadian economy. He said the hope is the impact will be mild or even positive – but it is safer for decision makers to assume the economy will take a serious hit. “At present, we have very little reliable information … as so much depends on future policy decisions and yet-to-be-proven technologies,” Mr. Rudin said. “And we have to recognize that we won’t have much reliable evidence until we are well into the transition. So the prudent thing to do is to prepare for the possibility that the overall economic impact of the transition will be sharply negative, at least for some time.” A copy of his remarks was posted to the OSFI website Tuesday. The speech was originally delivered Feb. 7 in Vancouver at the Annual Review of Insolvency Law Conference. The OSFI is responsible for supervising the stability of Canada’s financial system and monitoring the soundness of individual banks, insurers and private pension plans.

A 737 Max aircraft sits on the tarmac at Boeing's production facility in Renton, Wash. LINDSEY WASSON/REUTERS

For first time in 58 years, Boeing landed zero orders in January Customers not making purchases until the Max 737 is cleared by regulators to fly again

OSFI, B6

ANKIT AJMERA ERIC M. JOHNSON

Boeing Co. booked no new orders for airplanes last month, the first time it has come up empty-handed in January since 1962, as the U.S. plane maker’s once best-selling jet, the 737 Max, remained grounded after two fatal crashes. The airplane maker, struggling with a crisis that dates back to the second of the two crashes last March, also said it delivered just 13 planes to customers last month.

JESSE WINTER/REUTERS

A year ago, it sealed 45 orders after cancellations in January and delivered 46 planes. Most airline customers are avoiding placing fresh orders for the 737 Max until the aircraft is cleared by regulators to fly again, leaving Boeing trailing European rival Airbus SE and swallowing huge monthly financial losses. Airbus last week posted its biggest January order haul in at least 15 years, as it booked gross orders for 296 aircraft, or 274 net orders, after cancellations. Boeing saw its worst year for orders in decades in 2019 as it struggled with

the 737 Max crisis, leading to its first halt in 737 production in 20 years in January and the departure of chief executive Dennis Muilenburg in December. The company has continued to push back its expectations for when the Max will fly again, meaning it cannot deliver planes to customers and get paid for them. That has resulted in billions of dollars in losses both for the company and its suppliers, who have had to lay off workers amid uncertainty over the return of the 737 Max jets. BOEING, B6

G LO BE I N V E STO R

Canadian forestry stocks on the rebound, David Berman writes B8

Power Corp. has restructured. Now it just needs to reinvent itself through its fintech ventures

MARKE T S KONRAD YAKABUSKI

TMX revenue drops as stock trading activity slows

OPINION

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inority shareholders in Power Financial Corp. did not exactly strike a blow for corporate democracy in voting Tuesday to exchange their common shares for subordinated voting stock in parent Power Corp. of Canada. But, in the end, what choice did they have? Montreal-based Power Corp. already held about two-thirds of Power Financial’s shares, so there was no prospect of a better offer coming forward in the

COMPANIES AIRBUS SE .............................................. B2 AT&T ...................................................... B7 CISCO ..................................................... B7 FACEBOOK ............................................. B7 MICROSOFT ............................................ B7 SPRINT ................................................... B7 T-MOBILE ................................................ B7 TMX GROUP ........................................... B3

SPORTS B13-B18

way of an outsider takeover bid. And the Desmarais family, which controls Power through its multiple voting stock, had rejected an “alternative structure” proposed by a special committee of three independent directors of Power Financial that would have involved a reverse takeover of the parent. Power’s subordinated voting shares carry one vote for each share. The Desmarais family controls the company through a lock on its participating preferred shares, also known as multiple voting shares, which carry 10 votes each. Power Corp. advisers BMO Nesbitt Burns and Blake, Cassels & Graydon had warned that the alternative struc-

ture “raised a number of regulatory, tax, contractual, business, governance, timing issues and other risks that made it inadvisable” to proceed with a reverse takeover. Power Corp. chairman Paul Desmarais Jr. also dismissed a request made by the head of the Power Financial special committee, director Siim Vanaselja, that the parent company undertake to eventually do away with its-dualclass share structure. Mr. Desmarais countered that the dual-class structure had existed since Power Corp.’s founding in 1925 as an electrical utility. No matter that the concept of shareholder democracy was non-existent a century ago. YAKABUSKI, B6

HO CK EY

O LYMPICS

HOC KEY

Vancouver prepares to honour the careers of the Sedin twins B13

Canada will never witness another Games like 2010, Cathal Kelly writes B13

Oilers captain Connor McDavid out a few weeks with a quad injury B14

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