Standard Chartered takes $46 million profit hit

The representative portfolio of the assets acquired amounted to $1.68 billion.

Whistlejacket’s value has fallen from $18.2 billion to $10.8 billion since the credit markets seized up in August. Standard Chartered, which manages the SIV, said it is highly likely to take a further vertical slice before the end of the year, but insisted Whistlejacket is funded into 2008 and is supported by $1.5 billion in third-party liquidity facilities. It also said it is confident in the underlying quality of the assets it has acquired, and expects the writedown in value to flow back through income over the next three and a half years. Ninety-five percent of the SIV’s assets are rated AA or higher by Moody’s.

A further hit on profits was caused by an accounting mismatch related to Standard Chartered’s mortgage securitisations in Korea, which reduced the firm's income by $133 million in 2007. A delay in the sale of its Indian asset-management business to UBS excluded another $120 million from its figures for this year.

Overall, however, the impact of the market turmoil has remained limited for Standard Chartered, and it expects to record profits of $3.96 billion for 2007, up from last year’s $3.18 billion.

SIVs in need of a service

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here