Mizuho MFG – $5.5B
October 27, 2008 – 2:09 pm2008-10-27 Done In:
Mizuho Financial Group Inc. climbed to the top of the mountain in 2006, but has fallen hard in the credit crunch and now will need to raise capital to repair its subprime damaged balance sheet. The bank now struggles with the weight of Merrill Lynch and the imploding CDOs sold by a former ruthlessly self-serving insider, Alexander Rekeda.
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 write-downs and credit losses firms have written off per wholesale banking employee.
Mizuho Securities (Part of Mizuho Financial Group) – $5.5bn in writedowns / credit losses, 2,000 wholesale banking employees, $2,750,000 per employee.
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2008-04-11: After reporting dismal third quarter earnings fiscal 2007 could not end fast enough for the Mizuho Financial Group Inc.. Unfortunately the year end goes through Q4 and that is where the bank collapsed, beating full year expectations to the downside on all fronts.
- Losing $5.5 billion on mortgage securities dwarfing the estimated $0.5 billion
- Full year net income of 310 billion yen ($3 billion), below a January forecast of 480 billion yen and an expected profit of 369 billion yen, according to a Bloomberg survey.
- Mizuho Financial Group expected its securities unit to post a 420 billion yen ($4.1 billion) net loss, of which 220 billion yen ($2.2 billion) was incurred in the most recent three-month period, to the end of March, the final quarter in Japan’s fiscal calendar, compared to an earlier estimate of 50 billion yen ($490.2 million).
At the third quarter earnings release spokeswoman Masako Shiono said Mizuho expects a further 50 billion yen of losses at its securities unit stemming from the collapse of the U.S. mortgage market. UBS AG analyst Shinichi Tamura said that prediction may be too optimistic. It was!
The bottom line to all the lines above is this line, ”($2.2 billion) was incurred in the most recent three-month period”. Take $3.2B + $2.2B=$5.4B
2008-17-02:
Mizuho Financial Group Inc. reported 345 billion yen ($3.2 billion) loss from subprime-infected holdings and cutting its full-year forecast. On page 2-1 of it’s statement Mizuho Financial said
The total impact of the dislocation in the global financial market stemming from the US subprime loan issues on our consolidated P&L was a loss of approximately JPY 345.0 billion ($3.2 B) for the nine-month period from April to December 2007 (an increased loss of approximately JPY 170.0 billion from the November 2007 estimate).
The losses came by way of three banks and the groups ailing trading unit Mizuho Securities which alone was responsible for JPY 178 Bn ($1.7 B). In fact the group said it will inject $2.4 billion into unit bringing its total aid package to $3.8 billion.
Unfortunately for Mizuho there is one quarter remaining in it’s fiscal year 2007, one more quarter for losses to mount.
Mizuho expects a further 50 billion yen of losses at its securities unit stemming from the collapse of the U.S. mortgage market, spokeswoman Masako Shiono said today. UBS AG analyst Shinichi Tamura said that prediction may be too optimistic.
