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Principal Group
The Principal Group was a group of interrelated Canadian financial companies that collapsed in 1987, resulting in losses to an estimated 67,000 people. Losses were in recovered in part through provincial governments paying compensation, based on findings as to deficiencies in regulatory oversight.Brian BrennanPrincipal Group Collapse: The Man Who Knew" Extracted fro''Boondoggles, Bonanzas, and Other Alberta Stories'' Fifth House Publishers, 2003, as reprinted in ''Business Edge'', January 6, 2004. History The Principal Group was primarily three companies: First Investors Corporation, Associated Investors of Canada and Principal Savings and Trust Corporation. First Investors Corporation was established by Donald Cormie in 1954. The company was initially based in Edmonton, Alberta. The company sold investment contracts, which were contracts by which investors remitted monthly amounts to First Investors Corporation, in return for a promised future redemption amount, plus interes ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Donald Mercer Cormie
Donald Mercer Cormie (July 24, 1922 – February 20, 2010) was an American-born Canadian lawyer, financier and founder of the Principal Group. History Donald Cormie was a United States Merchant Marine from 1943 to 1944 before receiving his Master of Laws, LLM from Harvard Law School in 1946. With Jack W. Kennedy, Cormie co-founded the law firm Cormie Kennedy (1954-1987) in Edmonton, Alberta, and had a prestigious legal career. Cormie was the president and founder of one of Canada's largest Investment company, investment firms, which became known as the Principal Group. The main companies associated with the Principal Group were First Investors Corporation, Associated Investors of Canada and Principal Savings and Trust Corporation. The associated corporations within the Principal Group grew to more than $1 billion of assets. The corporations were closed by regulators in 1987 and subsequently liquidated. At the time of the closures, approximately 67,000 investors were at risk o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |