National Australia Bank Sees Write-Down of $795 Million

Fanning concerns of further credit turmoil, National Australia Bank Ltd. said Friday it will write down 830 million Australian dollars (about $795 million) of its investments in U.S. residential mortgages -- a move that pushed NAB shares down more than 13%.

The bank's write-down signaled its belief that credit markets, particularly in the U.S., could deteriorate further. "The U.S. subprime crisis has moved to other classes of mortgages," said Chief Executive John Stewart in a conference call with investors, citing government efforts to extend aid to U.S. mortgage giants Fannie Mae and Freddie Mac. He added, "Clearly the market believes ...