Bayern LB – $9.8B
May 19, 2008 – 7:42 am2008-05-19 – Off Balance:
Banks are not writing down their write downs and getting away with it. Instead they are writing them down in the balance sheet and there is a distinction.
Bayern was hiding $3.1 billion on the balance sheet, but we will balance thing out for them by adding $3.1 billion to their existing $6.7total bringing them up to $9.8 billion.
2008-04-03:
When times are good companies low ball their future earnings estimates to later report not just great, but ”better than expected earnings’,’ and watch the stock run wild. Then these are not good times:
– Bayerische Landesbank reported 4.3 billion euros ($6.7 billion) in writedowns from the subprime- market collapse, double its previous estimate and the biggest of any German state bank.
The fiscal year 2007 write down total comes to $1.88 or $2 billion. The first quarter of 2008 ushered in a fresh $1.7 billion in subprime disaster.
There will be no high or low balling future subprime write downs just the flat admission that know one knows how much.
“The main problem is no one can tell today how the market will develop in the future,” said new CEO Michael Kemmer, who replaced Schmidt last month. The bank will probably post a loss in the first quarter and can’t make forecasts beyond that because of market volatility and possible writedowns, he said.
With that we reitirate the past.
- $3.6 billion on the 2007 accounts
- $3.1 billion euros for the first quarter of 2008
2008-02-19:
It was the last day at the office for Bayerische Landesbank’s Chief Executive Officer Werner Schmidt. Thats the penalty he paid for booking $2.8 billion in write-downs related to the U.S. subprime loan crisis. BayernLB, invested about 4 billion euros in the US subprime- segment.
