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.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.
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
Monday, August 13, 2007
CIBC Spells out their losses
Here. Central banks DUMP cash into markets.
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5 comments:
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. =)
Article from Statistics Canada "The Daily"
http://www.statcan.ca/Daily/English/070809/d070809a.htm
S2
Please read this. It came from the Vancouver RE Blog - from Tony Danza.
http://query.nytimes.com/gst/fullpage.html?res=9E05E3D71538F93BA35751C1A962948260
To read S2's URL above, add "html" after "809a."
Thanks. It seems to have gotten cut off.
S2
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