Winter of discontent ahead for investors but summer may see improvement: CIBC World Markets report

CIBC (CM: TSX; NYSE) - Despite a steady stream of bad economic and financial news, 2009 could prove to be a happier new year for investors, notes a new CIBC World Markets report.

"A winter of our discontent is in store, and spring may not yet see any improvement," says Avery Shenfeld, senior economist in a note to clients today. However, financial markets "are starting to look ahead to a better, if not yet glorious, summer."

Mr. Shenfeld's optimism is based in part on the S&P 500 index which is "essentially no worse off than it was back in mid-October." He also points to a cooling U.S. dollar, and the energy-laden TSX, which has managed a sideways trend despite cheaper oil prices. "The North American equity market has become an oasis of relative calm in recent weeks," he notes.

Bank of Montreal Announces Common Share Issue

Bank of Montreal (TSX, NYSE: BMO) today announced an offering of 33,340,000 common shares at CDN$30.00 per share for total gross proceeds of approximately CDN$1.0 billion. The offering will be underwritten on a bought deal basis by a syndicate of underwriters. The Bank has granted to the underwriters an over-allotment option to purchase, on the same terms, up to a further 3,334,000 common shares. The option is exercisable, in whole or in part, up to 30 days after closing. The maximum gross proceeds raised under the offering will be approximately CDN$1.1 billion if the option is exercised in full.

The anticipated closing date of the offering is December 24, 2008. The net proceeds from the offering will be used by the Bank for general corporate purposes. The issue will qualify as Tier 1 capital.

TD Canada Trust lowers prime lending rate

TD Canada Trust has lowered its prime lending rate by 50 basis points to 3.50 per cent, effective December 10, 2008.

SOURCE: TD Bank Financial Group

SOURCE: TD Canada Trust

Kelly Hechler, TD Bank Financial Group, (416) 982-2469

Northbridge and Fairfax Announce Privatization Offer

(Note: All dollar amounts in this press release are expressed in Canadian dollars.)

Fairfax Financial Holdings Limited (Toronto:FFH.TO)(NYSE:FFH) and Northbridge Financial Corporation (Toronto:NB.TO - News) today announced that Fairfax intends to make a formal offer to acquire all of the outstanding common shares of Northbridge, other than those shares already held by Fairfax, for $39.00 in cash per common share, representing total cash consideration of approximately $686 million.

The price of $39.00 per Northbridge common share represents a premium of approximately 28.9% over the $30.25 closing price of Northbridge common shares on the Toronto Stock Exchange on November 13, 2008, the day Fairfax approached Northbridge's board of directors to consider the proposed transaction.