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Laurentian Bank Raises New Worries On Housing -- Canadian Commentary

Canadian stocks may fall Wednesday amid concerns in the financial sector about exposure to problematic loans.

Laurentian Bank (LB.TO) shares were hammered as an "internal audit uncovered some "documentation issues and client misrepresentations" in mortgages sold to a third party.

The affected mortgages which will be repurchased were worth $89 million.

"No employees were implicated in any misrepresentations and the documentation issues appear to have been unintentional," the bank said.

In other corporate news, a lass action suit by Valeant Pharma (VRX.TO) investors has been cleared to go to trial.

Dollarama (DOL.TO) said earnings were higher in the third quarter, narrowly beating market expectations.

On the other hand, Hudson's Bay (HBC.TO) lost $243 million in its latest quarter on slumping sales.

Crude oil futures fell Wednesday morning, hinting as weakness among Canada's energy stocks. Oil dropped below $57 a barrel in early dealing, ahead of U.S. inventories data.

by RTT Staff Writer

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