Thursday, May 29, 2008

CIBC: $2.48 Billion in Write Downs

by Bill McBride on 5/29/2008 01:45:00 PM

From The Canadian Press: CIBC loses $1.11 billion in quarter on massive credit-market hit

Canadian Imperial Bank of Commerce (TSX:CM) posted a net loss of $1.11 billion in the second quarter as it booked a massive hit tied to the credit market.
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The results in the second quarter of the bank's financial year included a loss of $2.48 billion, or $1.67 billion after tax, on writedowns of structured credit, added to $3.46 billion in first-quarter writedowns.
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The CIBC World Markets investment banking division ... warned that "market and economic conditions relating to the financial guarantors may change in the future, which could result in significant future losses."
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The bank said it expects Canadian economic growth "to remain very sluggish in the coming quarter, held back by weak exports as the U.S. appears to be entering a mild recession."
Just a couple billion (and change) more ...