10:10 AM EST - Bank of Montreal : said Thursday its losses on natural gas trading have ballooned to $680 million from the previously disclosed $350 million to $450 million. BMO also said potential trading "irregularities" are being investigated and it will have to restate its first-quarter results. The commodity-trading losses were disclosed April 27, but deeper problems have been uncovered since then as the valuations of positions have been brought into line with current market values. The bank said two of its commodities professionals, previously placed on leave, "are no longer employed by the company." The latest numbers will cut 64 cents per share from earnings, compared with the previous estimate of 45 to 55 cents, to be recognized in the first and second quarters. About $509 million pre-tax, or $237 million after tax and take-backs from employee incentive compensation, will be recorded in BMO's revised first-quarter results, dropping the bottom line by 46 cents per share. Bank of Montreal
shares BMO:CA are trading down one dollar two cents at $68.68.
