BEA loses HK$3.5bn from CDOs
The Bank of East Asia (BEA) will book losses of about HK$3.5 billion ($450 million) incurred from the unwinding of its synthetic collateralised debt obligations (CDO) portfolios in the second half of the year. In all, the bank has 12 synthetic CDOs.
"We had planned to hold these investments until maturity, but the problems with AIG and Lehman Brothers have forced us to change that strategy," said BEA chairman David Li on October 27. Lehman Brothers filed for bankruptcy protection and AIG received
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