The Bank of Montreal and National Bank of Canada may face writedowns as high as C$500 million ($513.36 million) each, according to an analyst at Scotia Capital, reports Bloomberg News. Both banks face losses on commercial paper holdings but the Bank of Montreal’s losses may also be tied to investments tied to structured investment vehicles. Analyst Kevin Choquette also said that exact loss amounts are “difficult to ascertain.” Some commercial paper has weakened amid a downturn in the U.S. mortgage market.
Two Canadian Banks May Show Writedowns