Commerzbank may face greater than expected losses on investments in the U.S. subprime mortgage market, reports Reuters UK. The bank had previously set aside 80 million ($111 million) to cover subprime losses but that may not be enough. Since that estimate was announced the situation has become more critical, said a source, adding that the bank now faced having to make a higher charge. There is no market at the moment - it could go in any direction. Another source said that the company could face a loss of 500 million ($703.36 million) but that it was impossible to tell at this point. A spokesperson for the bank said that it hasnt changed its loss estimate but that it may do so in the future.
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|Rank||Lead Manager/Arranger||Share % by Volume|
Bookrunners of Global Structured Finance
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|1||Wells Fargo Securities||11,897.40||33||11.83%|
|2||Bank of America Merrill Lynch||9,837.56||29||9.78%|