Israeli banks count Washington Mutual losses

Leumi said that it was too early to tell; Hapoalim cut its exposure over the past two months.

Bank Leumi (TASE: LUMI) reported today that it has $50 million in exposure to failed US bank Washington Mutual.

Bank Leumi that it held $27 million of fixed income securities issued by Washington Mutual, and $23 million in bonds and credit derivatives specifically credit default swaps issued by the parent company, Washington Mutual Inc.

Bank Leumi said that it was too early to tell the exact financial loss it will record on the holdings.

Sources inform "Globes" that Bank Hapoalim's (LSE: BKHD; TASE: POLI) exposure to Washington Mutual totals $25 million, and that it had significantly reduced its exposure to the bank over the past two months.

Washington Mutual collapsed and was seized by the US government at the end of last week, and JP Morgan Chase bought its banking assets for $1.9 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on September 28, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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