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Commerzbank Expects More Subprime Writedowns

Commerzbank will have to make further writedowns on the value of its subprime-linked investments, its designated chief executive told Reuters in an interview.

Martin Blessing, who takes over as head of Germany's second-biggest listed bank in May, said there would be additional writedowns for the fourth quarter of 2007 and that more could follow if markets don't improve.

"We have had further writedowns in the fourth quarter because the market has deteriorated," Blessing said on Friday in remarks embargoed until Monday.

"I think that the writedowns will be less than they were in the third quarter," he said, adding: "Further writedowns cannot be ruled out."