Natixis – $3.4B
May 19, 2008 – 7:31 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.
Natixis was hiding $0.2billion on the balance sheet, but we will balance thing out for them by adding $o.2 billion to their existing $3.2 total bringing them up to $3.4 billion.
2008-02-18: Just a glance at the daily chart for Natixis (KN) tells you something bad happened after the close on Valentine Day. Natixis in fact announced after the close that the company anticipates a net profit for 2007 of about 1 billion euros, down more than 50% from the 2.16 billion euros earned in 2006 and roughly half what analysts had been expecting.
The expected loss comes on write-downs of about 1.2 billion euros ($1.8 billion) on exposure to subprime mortgages and monoline insurers. Of the write-downs 817 million euros ($1195M) stems from exposure to U.S. RMBS, and another 380 million euros ($ 557M) from the bank’s exposure to U.S. bond insurers, also known as monoline insurers. The main counter-parties to the bank are MBIA, XL Capital Assurance and CIFG. It may be noteworthy that Natixis moved in November rescue the top credit rating of CIFG, a dress up costing $1.5 billion.
Top line write for full year 2007 is $1.8 billion
One Response to “Natixis – $3.4B”
Things were looking pretty bleak back then, but I think things are shoring up for KN and may surprise some investors
By Greg on May 5, 2008