Bayerische Landesbank, Munich, Germany, has taken 4.3 billion euros ($6.7 billion) of writedowns between mid-2007 and the end of March 2008 on a portfolio that includes billions of dollars in U.S. subprime residential mortgage-backed securities. The company and its owners said they are working on a plan "designed to cover theoretical default risks" from asset-backed securities investments up to 4.8 billion euros ($7.5 billion). Bayerische Landesbank saw pretax earnings of 255 million euros ($400 million) during fiscal year 2007, down from 1.33 billion euros ($2.08 billion) in fiscal 2006. In fiscal 2007, it recorded its results under International Financial Reporting Standards for the first time.
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