Pursuits
Home Capital Director Keohane Resigns After Fund Backs Loan
- Mortgage lender said to borrow C$2 billion from HOOPP
- Ability to raise GIC deposits, maintain operations uncertain
Home Capital Sale May Be Next After Pension Fund Loan
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The head of an Ontario pension plan has stepped down as a director of Home Capital Group Inc. after his fund agreed to provide a C$2 billion ($1.5 billion) loan to help offset a run on deposits at the struggling Canadian mortgage lender.
Healthcare of Ontario Pension Plan President and Chief Executive Officer Jim Keohane said he recused himself from the lending talks and stepped away from Home Capital’s board last Tuesday before formally resigning on Thursday. He also said that Kevin Smith, Home Capital’s chairman, has stepped down from HOOPP’s board.