ING and SG avoid worst of subprime crisis
Société Générale, meanwhile, reported a writedown of €230 million in its fixed income, currencies and commodities business due to exposure through collateralised debt obligations based on US residential mortgages, worse than its September estimates of €100 million-200 million. The estimate was based on a total worst-case scenario loss of $200 billion for the entire US residential mortgage sector, the bank said - this in turn assumes a default rate of 30% and a loss given default of 49%.
See also: Change at top as Citi sees writedowns
O'Neal 'retires' as Merrill CEO after $8 billion writedown
UBS warns of continuing subprime risk
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