Did Goodale's income trust announcement leak early?
Last Updated Mon, 28 Nov 2005 18:36:56 EST
Some market observers are wondering if the federal government's announcement on income trusts leaked early, allowing those in the know to profit.
On Wednesday, just before 6 p.m. EST, the federal finance department officially announced it would cut the tax on dividends and would leave trusts alone. That's the type of news that is always announced after stock markets close at 4 p.m. EST because it would give a boost to those types of securities.
But trading in many trusts and dividend-paying stocks became much heavier than usual in the hour or two before the market's closed on Wednesday, and share prices rose sharply.
Forensic accountant Al Rosen said it looks to him that Bay Street knew the details of Goodale's announcement well before he made it.
"Clearly, there was a leak between 2 and 4 [p.m. EST]," he told CBC News.
For example, the share price of BCE, which pays a rich dividend, climbed 4.9 per cent on Wednesday. The last hour featured a noticeable uptick in price and volume.
I wonder if they would care to know that BFI contributed $2,000 to Paul Martin's leadership campaign in May 2003. Probably just coincidence.
The other organized criminals