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Forum LockedWhat really happened at CIBC?

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Joined: 25/January/2003
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    Posted: 29/December/2006 at 2:36pm
From what I've heard....

The banks involved in student loans abandoned the program when they realized how serious the losses were from participating in the program.

At CIBC, accounting procedures for student loans resulted in losses being applied to individual branches.

As a result, managers and employees performance bonuses were reduced by the effect of the student loan cost accounting practices. If a borrower defaulted, the loan was removed from the branch books and sent to collections, thus eliminating the loss and increasing the performance bonus at the branch.

Keeping borrowers out of default or restoring an incorrectly defaulted loan meant reduced performance bonuses for bank staff.

So what do you think happened?
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Mark O'Meara

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Roymar View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Roymar Quote  Post ReplyReply Direct Link To This Post Posted: 17/October/2007 at 1:46pm
That sounds interesting...would love to know if this is fact or fiction because of troubles I have had with CIBC Student Loans and Interest Relief
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