Dr. Rookmin Maharaj; Corporate Governance Model; Toronto-Dominion Bank (TSX:TD) disclosed Friday a $96-million loss caused by "incorrectly priced"

…………………..AND LIFE GOES ON…………………………….
"It's got to be disappointing for management at TD because they have prided themselves on having not had these issues, where many of their peers have had absolutely devastating related issues," said Brad Smith of Blackmont Capital. TD Bank has spent the last year gliding relatively unscathed through a period where its Canadian peers have been slammed with massive writedowns related to credit losses tied to the U.S. subprime mortgage market....................... The bank's announcement echoed similar risk management troubles faced by the Bank of Montreal (TSX:BMO) early last year when it reported $680 million of commodities-trading losses, mostly from natural gas trading. TORONTO - Toronto-Dominion Bank (TSX:TD) disclosed Friday a $96-million loss caused by "incorrectly priced" financial investments at its operations in London. Canada's second-biggest bank by assets said the employee involved at its TD Securities arm "is no longer with the company" and the Toronto bank is co-operating with Canadian and British regulators investigating the matter.( http://finance.sympatico.msn.ca/investing/news/businessnews/article.aspx?cp-documentid=8438736TD).

Where were the directors?
Who are these so called FINANCIAL ANALYSTS?

For solutions to these ONGOING, NEVER ENDING, GOVERNANCE OVERSIGHT (USED IN THE NEGATIVE SENSE, I.E. OMISSION; FAILURE TO NOTICE). PLEASE READ OTHER ARTICLES ON MY BLOG

It is argued that a combination of legislation, regulation, effective risk management and appropriate sanctions are needed, if such unethical behaviour, and resulting corporate failure, is to be prevented in future. However, what is required is an astute, independent, assessment of these financial collapse debacles. This may establish that failures within these companies' corporate cultures and management systems allow, if not encourage, unethical behaviour by key individuals. COULD IT BE THAT THE CONTINUATION OF THE OLD BOYS CLUB may be the fundamental reason for the blatant disregard and perception of invincibility/groupthink mentality of same. COULD IT BE THAT ONCE AN EMPLOYEE IS INCREASING THE PROFITS AND BOTTOM LINE OF AN ORGANIZATION HE/SHE IS SHELTERED BY TOP EXECUTIVES, WHO MAY TURN A BLIND EYE TO UNETHICAL PRACTICES?Dr. Rookmin Maharaj’s research on:Corporate Governance and the Board of Directors:Study of the Importance of the Role of the Formal & Informal SystemsInvestigates corporate governance issues from a behavioural viewpoint. It makes a distinction between strict adherence to formal rules and regulations: CEO/Chair separation, independence of board members and board size and informal characteristics of board members: knowledge, values, and groupthink.There are three main conclusions from her research and corporate experience:1. Clearly proves that formal rules and regulations are inadequate; they have little effect upon decision making by board members. Informal characteristics must be considered in unison with the formal system when nominating board members, management and employees in order to restore shareholder confidence and to rebuild trust in corporate governance.2. Similar values and groupthink can contribute positively to corporate decision making. However, there is a high possibility for groupthink and values to become redundant, masking board members’ and managements’ knowledge thus affecting their decision making process.3. Skills matrices that include questions related to values, knowledge and groupthink should be considered by corporations to ensure the nomination of well-rounded members, management and employees.Changes to board process, and board decision making, are seminal in preventing future Enron and WorldCom fiascoes. It is only by changing the behaviours of the board of directors, through adopting skills matrices, that sweeping changes can occur. In the past boards have asked: who are our board members? However, the most important question a board can ask today is: how can the skills and knowledge of our board members be used in service of the strategic direction of the corporation? This can be achieved by recruiting new board members, management and employees who fill the needs of an organization, in contrast to nominating ‘friends’ and continuing the tradition of the old boys club.Dr. Maharaj argues that, and has tangible evidence, that what should be done is a forensic audit on 'the people that we hire' and 'employees, managers, board members' should also conduct an audit on their potential employers. What is your opinion?Does your opinion change with this update?

ILLEGAL GUNS ENTER CANADA FROM THE UNITED STATES OF AMERICA!!!!

Canada is in dire need of effective leadership and Corporate Governance with regards to gun control. Perhaps we should take advice from Toronto Mayor David Miller who wants Ottawa to exert diplomatic pressure on Washington. As Mayor Miller noted if there is lack of control regarding guns in the US, THE PROBLEM will filter through Canada via loopholes like “blue-steel highway right up the U.S. from places where it's easy to get guns to the northeast U.S. and to Canada. Mayor Miller is correct in stating that Canada should make it a national security issue. As Mayor Miller noted there is a direct correlation between the weak U.S. gun laws and people dying on the streets of Canada." This seems a simple deduction and as citizens one would expect the Canadian Government to take a stand and stop dragging their feet with regard to instituting regulations AND ENFORCING THESE REGULATIONS! According to Yahoo news reporter “Public Safety Minister Stockwell Day noted that “any regulation that comes up for review, especially one that's been on the books but never implemented for a number of years, is always addressed to make sure it's current," Day says. If we were current why was a second time offender (according to Yahoo news) “Curtis Coleman caught red-handed smuggling a shipment of guns into Canada from the U.S. again?” Perhaps the slap on the wrist is not enough to curtail this sort of behavior in Canada.
“Mounties found them with backpacks carrying three dozen guns, including two machine pistols, 24 diamonds and US$100,000 cash. Coleman was convicted of smuggling and possessing prohibited or restricted firearms and deported after serving most of a two-year sentence. This time he pleaded guilty to a single count of being in a vehicle with the contraband guns. The judge condemned him for his role in trafficking guns that put the Canadian public at risk and he drew 36 months, less time served awaiting trial” (http://ca.news.yahoo.com/s/capress/080703/national/gun_smugglingThu Jul 3, 3:31 PM). How many lives need to be lost before ANY OR ALL OF the enforcement AGENCIES; THE JUDICAL SYSTEM AND THE Canadian Government, ACTUALLY TAKE A STAND!!!