The company last month forecasted about $1.2 billion in write-downs, but that the figure could increase. The final write-down cut the bottom line by $8.21 a share. The company reported negative revenue of $379 million as write-downs surpassed revenue. Net revenue a year ago was for $2.4 billion.
The mean estimates of analysts surveyed by Thomson Financial were for a net loss of $1.79 a share on net revenue of $625 million.
"We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses," said Chairman and Chief Executive James E. Cayne. "Our underlying fixed income franchise remains strong and we have taken steps to size the division to market conditions."
Bear Stearns' biggest operation -- fixed-income and equities trading and investment banking -- posted negative revenue of $956 million because of the write-downs. Year-earlier revenue was $1.91 billion. Bear Stearns is one of the biggest U.S. underwriters of mortgage bonds.
Equities revenue were down 11% to $384 million despite record international results, while investment banking revenue dropped 44% on fixed-income weakness.
Wealth-management revenue rose 10% to $272 million as the number of accounts and client activity increased.