The Royal Bank of Canada said it would take a write down of 855
million Canadian dollars ($846 million) on its second-quarter earnings, largely
because of problems in the United
States debt market.
The bank, which is Canada’s largest financial institution, said the
single biggest devaluation, worth about 200 million Canadian dollars, came from
its exposure to a subsidiary of MBIA, the troubled bond insurer based in Armonk, N.Y.
The size of the bank’s write down
was at the high end of most analysts’ expectations.
Moody’s said in a statement that
the write down would not significantly alter the bank’s capital level or its
ability to pay dividends.
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