US investment bank Bear Stearns has reported a quarterly loss for the first time in its history as the fallout from the subprime mortgages controversy continues.
Bear Stearns reported a net loss of $854 million, or $6.90 a share, for the quarter ended November 30th. That compared with a year-ago profit of $563 million, or $4 a share.
The bank said it took a $1.9 billion write-down in the quarter ended November 30th, reflecting the reduced value of subprime mortgage-related securities.
That was bigger than the $1.2 billion the company estimated in early November. Bear Stearns shares were down 2 per cent at $89 in morning trade on the New York Stock Exchange.
Hit by the collapse of two hedge funds last summer and poor financial results, Bear Stearns said there would be no bonuses for top executives.
Chief executive Jimmy Cayne called the results "unacceptable".