DundeeWealth Inc. reported a $121.4-million loss for the third quarter after taking a $133-million charge on the sale of its Dundee Bank subsidiary to Scotiabank in September.
The loss includes a $57.6-million writedown of asset-backed commercial paper, investments of uncertain value following the weakness in certain assets backing the investments this summer.
But the wealth management company still has $340.6 million worth of asset-backed paper on its books. It bought it from the bank before the Scotiabank sale, it said in its financial statements released Wednesday.
It is not sure of the value of the paper, so it wrote it down by about 15 per cent or $57.6 million. The value is expected to become clearer on Dec. 14, when a group of holders are expected to deliver a plan to deal with the paper under the Montreal Proposal.
DundeeWealth said the loss for the three months ended Sept. 30 was $121.4 million ($1.06 a diluted share), compared with a loss of $1.1 million (one cent) a year earlier. The 2006 figures have been restated to remove the effect of Dundee Bank.
Revenue was $172.9 million, compared with $149.2 million, restated.
For the nine months ended Sept. 30, the loss was $97.6 million (88 cents a diluted share), compared with a restated profit of $20.3 million (20 cents).
Revenue was $688.2 million, compared with $570.2 million, as restated.
Canadian banks control two-thirds of the $120-billion market in Canadian asset-backed commercial paper — the short-term debt products that have been jolted recently by a lack of investor confidence.
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