2008-05-22 Write Downs Count of a Different Sort:
We have been keeping a running tally of write downs and other credit related distress taken by the major banks since 2007. But here come a write down count of a different sort, how much in writedowns and credit losses firms have written off per wholesale banking employee.
Credit Agricole – $6.9bn, 13,000, $530,769 per employee
2007-12-21:
Credit Agricole 2007 damage report could be reduced to the fourth quarter where the biggest credit crisis related hit of €3.3 billion in exceptional impairment charges was taken.
Most of the negative impact of the financial crisis was concentrated in the fourth quarter, leading to the recognition of €3.3 billion in crisis-related losses, in line with the figures announced on 20 December 2007:
-€1.2 billion in additional impairment for unhedged super senior CDOs;
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€800 million impairment charge for the ACA counterparty;
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an allowance for counterparty risk, which was revalued to €1.2 billion to factor in changes in the monoline situation;
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€75 million in other impairment charges.
As a result, in the fourth quarter, net income (Group share) was a loss of €1,912 million. Excluding crisis-related losses, it was €255 million, down 25.2% on the final quarter of 2006, in a severely deteriorated environment.
So, as of that time there were write downs related to the credit crisis of at least $8.7 billion (5.6billion euros).
