It's not as bad as it looks.
That was the basic message coming from the former interim head of the Caisse de depot et placement du Quebec, Fernand Perreault, as he appeared before a National Assembly committee on Tuesday.
He spoke as part of an on-going examination into why the Caisse-- responsible for provincial pension management-- lost $40 billion in 2008. The loss is largely credited to investments in asset-backed commercial paper.
He told the committee that the losses look bad on paper, but that is only because they are held to accounting regulations that other pension plans are not.
Perreault was at the helm as interim president in January after former president and CEO Richard Guay stepped down on Jan. 5, 2009. Guay had been named in September 2008, and went on sick leave on Nov. 12 due to exhaustion.
Perreault was signed on for six months, but current president and CEO Michael Sabia was named on Mar. 13, 2009. Perreault continues to advise Sabia.
His appearance is in advance of former head Henri Paul Rousseau, who is expected to speak next week. Rousseau manned the Caisse from September 2002 until May 30, 2008 when he resigned to take a job at Power Corporation-- one of Canada's biggest conglomerates.
