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Canadian Imperial Bank of Commerce

Encyclopedia : C : CA : CAN : Canadian Imperial Bank of Commerce

The Canadian Imperial Bank of Commerce TSX: [CM] NYSE: [CM], better known to most customers as CIBC, is one of Canada's major banks. CIBC (as well as Amicus Bank and President's Choice Financial) is classified as a Domestic Chartered Bank (Schedule I). With its headquarters in Toronto, Ontario, it also operates in the United States, the Caribbean, Asia and the United Kingdom. It is currently Canada's fourth largest chartered bank.

Contents

Current operations

Company divisions

CIBC has three main operational divisions:

Within the divisions are functional divisions:

Units in CIBC included:

Former Divisions of CIBC:

Operational facts

View of a CIBC branch in Toronto located at Ossington and Dundas.
Enlarge
View of a CIBC branch in Toronto located at Ossington and Dundas.

Memberships

CIBC is a member of the Canadian Bankers Association (CBA) and registered member with the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks. It is also a member of:

Current events

CIBC announced a US$2.4 billion payout agreement in principle to settle the Enron class action litigation on behalf of Enron security purchasers on August 2005, but this led to a drop in share prices and outcry from the bank's shareholders. Some demand former executive John S. Hunkin to pay back some of his bonuses and shares in light of this large fine payout. CBC News reported that Hunkin is on vacation in Chester, Nova Scotia and avoiding all questions relating to Enron.

CIBC participates in a number of local events across Canada and globally. One of their better known promotional programs is the CIBC Run for the Cure which raises money for breast cancer research.

Li Ka Shing, Hong Kong billionaire was the largest foreign shareholder in the bank for over two decades, but sold his portion (est. C$1.2 Billion) to establish a Canadian charity, the Li Ka Shing Foundation. CIBC was Mr. Li's choice for financing many of his Canadian ventures, like Husky Energy.

In March 2006, CIBC officials announced their intention of buying majority control of their publically-held Caribbean joint venture the FirstCaribbean International Bank. The deal costing just over US$1billion would purchase the current 43.7% owned by Barclays Bank PLC and would raise CIBC's current ownership to 87.4%, from 43.7%. Upon closure of the deal, the top four Caribbean commercial banks would be consolidated merely to a top three, with those being Scotiabank, the FirstCaribbean International Bank, and the Royal Bank of Canada with a possible distant fourth-place bank varying in each territory. Following the deal, the regional head-office for FCI is expected to remain located in Barbados, with that regional centre continuing to report to the Toronto CIBC head-office. [link], [link], [link], ([Final agreement for sale]). The deal expected to close by the end of 2006, is awaiting approval by several Caribbean regional regulators, as well as the securities exchanges in the Caribbean where majority ownership thresholds of 50% + 1 may have been crossed for the publicly held bank.

The stock ticker symbol on the NYSE was changed in 2006 from BCM to CM. This is consistent with the ticker symbol on the Toronto Stock Exchange.

History

In 1867 the Canadian Bank of Commerce opened in Toronto with a charter in 1866 (purchased from the defunct Bank of Canada, which folded in 1858. Imperial Bank of Canada opened a few years later in 1875, also in Toronto. In 1961 the two banks merged to form the Canadian Imperial Bank of Commerce and in 1962, opened a major new banking centre in Montreal, Quebec with the construction of the CIBC building.

CIBC was the first Canadian bank to introduce bank machines, with the Automated Cash Dispenser (aka Robot tellers) in 1969. In 1988 CIBC moved into the investment market by purchasing Wood Gundy Inc. In 1997 it moved to do the same in the United States by purchasing Oppenheimer & Co., Incorporated.

Besides its Canadian operations, CIBC has operations globally. CIBC National Bank was established in the U.S. in 1999, but opened an foreign exchange office in New York in 1875 (Canadian Bank of Commerce), London in 1901 and in Asia (Hong Kong) in 1970.

Along with Loblaws, CIBC helps operate President's Choice Financial started in 1996.

CIBC is currently one of Canada's chartered banks, also referred to as the Big Six banks.

CIBC and the Great Wars

During World War I and II, staff from the Canadian Bank of Commerce enlisted in the war effort:

Staff enlistment for:

A War Memorial at Commerce Court in Toronto, Ontario commemorates their sacrifice.

Mergers

Canadian Bank of Commerce

Halifax Banking Company - 1903 Established in 1825 by Enos Collins with Hon. Henry H Cogswell as President from 1825-1834:

Gore Bank Formed in 1836 and merged with the Commerce in 1870:

Eastern Townships Bank Formed in 1859 and merged with the Commerce in 1912:

Bank of British Columbia Established with a Royal Charter in 1862 and merged with the Commerce in 1901:

Merchants Bank of Prince Edward Island Formed 1856 and merged with the Commerce in 1906:

Bank of Hamilton

Merged with the Commerce in 1924.

The Standard Bank of Canada (changed to St Lawrence Bank 1872-1876) in 1876) Merged with the Commerce in 1928.

Imperial Bank of Canada

CIBC 1961

CIBC-TD Bank

There was an attempt by CIBC to merge with the Toronto-Dominion Bank in the late 1990s. However, the Government of Canada at the lead of then Finance Minister Paul Martin blocked the merger from occurring.

Joint Ventures

Sell Off/Restructuring/Outsourcing

Corporate governance

Bank Executives

Current members of the board of directors of the company are:

Past Presidents/CEO/Chairman

Canadian Bank of Commerce

Presidents

Imperial Bank of Canada

Presidents

Chairmen Canadian Imperial Bank of Commerce

Presidents

Chairs CEOs

Who's Who

A list of famous and not so famous staff from the past:

References

Unionization

Currently only VISA centre staff and select branches are unionized. The Sudbury branch staff are part of the powerful United Steelworkers union.

Significant buildings occupied by CIBC

External links

Commercial banks in Canada

Alberta Treasury Branches | Bank of Montreal | BDC | CIBC | CTFS | Canadian Western Bank | Citibank Canada | Citizens Bank of Canada | First Nations | HSBC Bank Canada | Laurentian Bank | Manulife | National Bank | President's Choice Financial | RBC | Scotiabank | TD Canada Trust

 

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