The board of Gildan Activewear Inc. resigned on Thursday, paving the way for former chief executive Glenn Chamandy to retake the helm.Christinne Muschi/The Canadian Press
Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
Gildan’s board and CEO Vince Tyra resign
Gildan Activewear Inc.’s entire board of directors and chief executive officer Vince Tyra resigned earlier this week, clearing the way for the return of former CEO Glenn Chamandy. The news marks a surprising end to a six-month boardroom battle that began when the board dismissed the CEO in December over succession issues. The board’s decision to quit came after many of Gildan’s largest shareholders joined activist fund manager Browning West in the campaign to reappoint Mr. Chamandy. They resigned after it became clear they would lose a shareholder vote on the composition of the board scheduled for Gildan’s annual meeting on Tuesday, Andrew Willis reports.
Canada’s inflation rate slowed to 2.7% in April
Canada’s annual inflation rate slowed to 2.7 per cent in April, matching analyst expectations and bolstering the case for the Bank of Canada to start cutting interest rates this summer. The question is whether that will happen at the next decision date in June or at a later date. Investors raised their bets on a June rate cut after Tuesday’s report, but it’s still close to a coin-toss outcome. It does seem that the central bank is nearing the point of lowering interest rates, Matt Lundy reports. The inflation rate has now fallen within the Bank of Canada’s target range of 1 per cent to 3 per cent for four consecutive months. Measures of core inflation, which strip out volatile price movements, are also slowing.
Decoder: Toronto is losing its young kids
While Toronto’s population is growing because of strong immigration, the city is losing its younger kid residents. According to Statistics Canada figures published this week, there were roughly 295,000 babies and toddlers (ages zero to four) in the Toronto area as of July 1, 2023 – a decrease of around 25,000 over four years. Further data show that nearly one-fifth of Toronto residents were ages 14 and under in 2001. Today, the number is 14 per cent. Why? Matt Lundy points to an aging population, fewer births and an outflow of families moving to more affordable regions in the latest Decoder.
Banking regulator orders TD to overhaul risk controls
Canada’s banking regulator has ordered Toronto-Dominion Bank to repair the nerve centre for its risk controls. The Office of the Superintendent of Financial Institutions (OSFI) identified deficiencies with the bank’s regulatory compliance management program, Rita Trichur and Stefanie Marotta report, including weaknesses that involve the bank’s anti-money-laundering controls. The framework is a set of controls that banks must have in place to meet various laws and regulations governing their operations. TD Bank has set aside hundreds of millions of dollars to cover financial penalties it faces in the United States for weaknesses in its anti-money-laundering systems.
How CRA’s tax rules on bare trusts and the UHT ensnared thousands of Canadians
Many ordinary Canadians found themselves ensnared in a double tax fiasco earlier this year because of the Canada Revenue Agency’s new tax-filing rules on bare trusts and the Underused Housing Tax (UHT). Over the past six months, Ottawa has taken the rare step of walking back on both sets of rules after they backfired in similar ways, but not before creating a costly bureaucratic nightmare for many people. Experts have also lambasted the federal government for waiting far too long to reverse course. Erica Alini spoke to several anti-money-laundering and trust law experts about how to move forward and what needs to be done to make the rules easier and less financially stressful for Canadians to follow.
How this retired military member built up an $883,500 TFSA
This week we launched TFSA trouncers, a new series that profiles Canadian investors who’ve accomplished incredible feats with their tax-free savings accounts. In the first instalment, Darcy Keith profiles a retired military member who opened a TFSA as soon as the investment vehicle was created in 2009. He grew his TFSA by using a dividend strategy, then redeploying the funds into a growth stock. Today, it is worth $883,500 – and generates about $11,000 a month in tax-free income. If you have grown your TFSA to half a million dollars or more, send us an e-mail at dakeith@globeandmail.com, or fill out this form.
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c. Overhaul its risk controls. The Office of the Superintendent of Financial Institutions spotted deficiencies in TD’s risk controls during a recent assessment, according to people familiar with the matter. In what TD says is an unrelated matter, the bank has set aside hundreds of millions of dollars to cover financial penalties it faces in the United States for weaknesses in its anti-money-laundering systems.
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