Monday, August 13, 2007

CIBC Spells out their losses

Here. Central banks DUMP cash into markets.
The Canadian Imperial Bank of Commerce says it has about $1.7 billion US at risk in bets on the troubled U.S. mortgage market — as much as $1 billion of it relating to subprime, or junk, mortgages.

It said it will write off about $290 million of the total in its next quarterly earnings report and still show better profits than analysts had been predicting.

CIBC's share price opened at $91.50, up $3.99 on the Toronto Stock Exchange.

CIBC is likely to be one of a string of Canadian banks reporting exposure to the U.S. mortgage crisis...

Some of the bets have been covered with offsetting bets, the statement said
CIBC gambles with its investors money. Canadians buy financial stocks driving up the TSX. Crazy world we live in. This will make things worse, not better long term. Read all about it here.


Village said...

I hope the exposure of our banks and all the turmoil knocks the wind out of our real estate market. It's better it corrects sooner then latter. I suspect it'll be painful either way, but the sooner it happens the sooner the recovery.

I'll be happy when I can buy a 3bed/2bath w/ 1 car garage at around $250k. =)

Anonymous said...

Article from Statistics Canada "The Daily"


Anonymous said...

Please read this. It came from the Vancouver RE Blog - from Tony Danza.

Anonymous said...

To read S2's URL above, add "html" after "809a."

Anonymous said...

Thanks. It seems to have gotten cut off.