- Oil Next Week: What Traders Will Be Watching
- Hedge Fund Billionaire Paulson Reports New Citi Stake
- Cramer: 5 Earnings Reports to Watch Next Week
- Court Rejects 'Clawbacks' for Alleged Stanford Victims
- Tax Credit Sparking First-Time Home Sales: Realtors
- Investors Cut Back US Stocks for Bigger Growth Abroad
- Cities With the Most Home Price Reductions
- White House Plans to Freeze Spending to Cut Deficit
- This Year's Biggest Thanksgiving Leftover: Cash
- Oil Next Week: What Traders Will Be Watching
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- This Year's Biggest Thanksgiving Leftover: Cash
- TV Series Inks Unique Deal For Fight
- First Time Buyers Rescue Housing: Realtors
- Dollar General Trades Higher After Its IPO
- Fed Reform? Not So Fast.
MOST SHARED
- Seeking Innovation in Health Care
- Cramer: 5 Earnings Reports to Watch Next Week
- Driving Health Care Innovation
- Downturn is Prime Time for Airport Infrastructure Projects
- Next Week’s Top IPO
- Hedge Fund Billionaire Paulson Reports New Citi Stake
- Gold Rises, Nears Record High as Dollar Drops
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Web Extra: Where Will The Next Bull Come From?
Text Size 
France's biggest retail bank Credit Agricole said on Thursday it would book a 2.5 billion euros pre-tax writedown in 2007 due to the credit crisis gripping global financial markets.
"In total, the impact of these measures on the 2007 results should be around 1.6 billion euros (2.5 billion euros before tax)," Credit Agricole said in a statement.
Credit Agricole said its Calyon investment banking arm would have "negative results" for the full year ending Dec. 31 but Agricole would not have to cut its 2007 dividend.
In November, Credit Agricole posted a 16.8 percent fall in its third quarter net profit as its earnings were hit by a previously disclosed trading loss at Calyon.
Credit Agricole's update follows similarly negative results from Wall Street banks hit by the credit and subprime mortgage crisis. Bear Stearns [BSC
Loading...
()
] on Thursday announced the first loss in its history.
Credit Agricole said its writedowns related to super-senior collateralized debt obligations and took into account a decision by ratings agency Standard & Poor's to cut the rating on bond insurer ACA Financial Guaranty to junk status. ACA FG is a unit of ACA Capital Holdings
"Credit Agricole reiterates that this writedown does not correspond to an actual loss on the related assets but a conservative appreciation of the current worsening market conditions," the bank said.
Credit Agricole shares closed down 0.65 percent at 22.87 euros. The stock has fallen by around 27 percent since the start of 2007, compared to an 18 percent decline in the DJ Stoxx European bank sector.
Print
Email
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
- A wealthy, distracted Texas driver crashed his million-dollar Bugatti Veyron sports car into a salt marsh, say police.
Data is a real-time snapshot *Data is delayed at least 15 minutes