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Germany's DZ Bank writes down nearly euro1.4 billion in subprime-related investments

Germany's DZ Bank writes down nearly euro1.4 billion in subprime-related investments

Germany's DZ Bank said Thursday that it has been forced to write down nearly euro1.4 billion (US$2.1 billion) in asset-backed securities and bonds because of their exposure to subprime risks.
The Frankfurt-based bank said that, although it has made the write-downs official, it has no plans to try and sell the holdings at the reduced value.
"We believe that the main part of the write-down on the book value of the assets will remain only temporary," chief executive Wolfgang Kirsch said.
For 2008, Kirsch said the bank expects further subprime write-downs, but he said he does not expect them to run into the billions of euros again.
The bank said its portfolio of asset-backed securities is worth about euro26 billion (US$39.1 billion) in total.
DZ is a central bank of sorts for Germany's more than 1,000 cooperative banks and helps to link them to international markets.
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On the Net:
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