NEW YORK, Aug 17 (Reuters) - Major U.S. and European banks
are facing tougher times in the riskiest parts of the loan
The biggest U.S. lenders, including Bank of America
and Citigroup, wrote down $1 billion in the second quarter
on leveraged and bridge loans as rising interest rates made it
tougher for banks to offload debt to investors and other
Below is a compilation of write-downs that global banks took
during the second quarter:
BANK OF AMERICA
Bank of America said it took mark-to-market losses related
to leveraged finance positions in the second quarter.
Chief Financial Officer Alastair Borthwick said the market
turmoil and abrupt slowdown in the second quarter sparked a
downturn in leveraged finance markets, causing a number of deals
to get marked down.
Citigroup Inc wrote down $126 million in the second
CFO Mark Mason said leveraged finance was under considerable
pressure, but noted that Citigroup was not a big player in the
Wells Fargo & Co took a $107 million write-down due
to a widening of credit spreads.
Credit Suisse said it suffered mark-to-market losses of 235
million Swiss Francs ($247.45 million) in leveraged finance.
JPMorgan took a $257 million markdown on its book of bridge
"I think we made conscious choices here to dial back our
risk appetite and accepted some share losses in leveraged
finance," CFO Jeremy Barnum said.
Deutsche Bank also took a hit on its leveraged loans book as
the dealmaking outlook turned sour with rising interest rates
and extreme market volatility caused by the Russian invasion of
Deutsche took a write-down of 150 million euros in the
Barclays marked down some leverage finance transactions as
it managed its deal pipeline, said Anna Cross, the bank's
($1 = 0.9497 Swiss francs)
(Reporting by Saeed Azhar; Editing by Richard Chang)