KEY POINTS:
Bear Stearns posted a much bigger-than-expected quarterly loss today, capping a fiscal year when the fifth-largest US investment bank took a beating on bad bets on risky subprime mortgages.
It was the first loss in the history of the company, which decided top executives would not receive bonuses. Bank of America analyst Michael Hecht said Bear's smaller bonus pool could lead to attrition and hinder a strong rebound.
Bear Stearns said it took a US$1.9 billion ($2.5 billion) write-down in the fourth quarter ended November 30, reflecting the reduced value of subprime mortgage-related securities. That was bigger than the US$1.2 billion the company estimated in early November.
The quarterly net loss of US$854 million, or US$6.90 a share, compared with a year-earlier profit of US$563 million, or US$4 a share.
The loss was nearly four times bigger than the US$1.80 a share that analysts were expecting.
- REUTERS
