Bertrand leaves TMX; rumoured heading for Caisse

Luc Bertrand, the driving force behind the Montréal Exchange and its merger with TSX Group, has announced that he will step down from his positions with both companies, effective June 30, 2009.

“I have had a wonderful career working with the MX team, and am proud of our achievements in creating TMX Group, fulfilling a vision I have had for the Canadian capital markets since 1999,” Bertrand said in the announcement. “I now feel that it is a good time for me to move on to other challenges and opportunities.

“We have a solid team in place to lead the business forward and there will be a smooth transition to my successor. I am confident that I am leaving both TMX Group and MX in good hands.”

The decision to step down from the exchange has fueled speculation that Bertrand may be headed to the Caisse de dépôt et placement, Quebec’s massive public pension plan.

Leadership at the Caisse has been under fire since the pension found itself holding a hefty portfolio of illiquid third-party asset-backed commercial paper. The fund posted a $39.8-billion loss in 2008, although 56% of that was made up of unrealized paper losses.

Richard Guay resigned the role of president and CEO of the Caisse, effective January 7, 2009, citing personal reasons. The board of the Caisse named Fernand Perreault as an interim replacement until July 7.

In an interview with La Presse, Bertrand fueled rumours that he is heading to the Caisse, saying, “if I can be of any help, if one estimates that I can bring a certain expertise, then you can count on me.”

Bertrand will be succeeded by Alain Miquelon as MX president and CEO effective July 1, 2009. Bertrand has served as MX’s president and CEO since March 2000, driving its success as a derivatives exchange.

“Alain is the clear successor for the position of president and chief executive officer of MX at TMX Group,” said Thomas Kloet, CEO of TMX Group. “He has demonstrated leadership skills and has done a terrific job of spearheading the integration planning process.”

Miquelon joined MX in August 2007, and has served as executive vice-president, CFO and head of strategic planning during the merger of the two exchanges. Upon completion, he was named head of the integration project management office.

Meanwhile, Quebec opposition parties are accusing Premier Jean Charest of a cover-up after the provincial government cancelled committee hearings into the Caisse’s loss.

The opposition parties believe Charest knew about trouble at the Caisse prior to last fall’s election, a charge he denies. They also argue that the pension fund’s problems are a result of the 2003 changes to the Caisse’s governance rules — implemented by Charest’s Liberals — which allowed managers to take greater risks with pension fund assets. Such changes, the opposition contends, led to the Caisse’s heavy investment in ABCP, which contributed to last year’s losses.

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(03/05/09)