Cibc Expected to See Big New Writedown

Summary


"We expect CIBC will write off its remaining fair value exposure to XLCA in its third-quarter 2008 results," Blackmont Capital analyst Brad Smith wrote in a note, putting the total writedown at $1 billion.

"While available information does not allow us to be conclusive, recent events in the monoline space leave us sensitive to the potential that (CIBC's) margins and competitive position in domestic retail have continued to erode," [Mario Mendonca] wrote in a note.

"The banks have all heightened their disclosure, and it's very clear of what their exposures are, it's just difficult to exactly call when things will deteriorate and how they will perform," said Chris Blumas of Morningstar in an interview.

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Extract


Cibc Expected to See Big New Writedown

By David Friend

TORONTO -- Canadian Imperial Bank of Commerce (TSX:CM) is likely to endure another multi-billion charge...

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