BMO Financial Group announced today it will take $490 million dollars in charges related to certain trading activities and structured credit-related positions.

BMO said it expects several charges taken in the quarter will lower earnings per share by approximately 70¢.

The adjustments total $490 million pre-tax or $325 million after tax.

BMO said the bulk of the writedowns ($160 million pre-tax) are related to transactions hedged with ACA Financial Guaranty Corp. and structured credit-related positions ($175 million pre-tax).

Another chunk of the charges ($130 million pre-tax) is related to BMO’s investment in Apex/Sitka Trust. And the final portion ($25 million) is related to capital notes in the Links Finance Corp. and Parkland Finance Corp. structured investment vehicles (SIVs).

The four major ratings agencies, DBRS (AA), Fitch (AA-), Moody’s (Aa1), and Standard & Poor’s (A+) have since confirmed their ratings for the company.

BMO also announced a shake-up of senior management, which will take effect March 5, the day following BMO’s annual meeting.

Another charge relates to an increase to the general allowance for credit losses to reflect portfolio growth and risk migration, of approximately $60 million pre-tax ($40 million after tax).

BMO also announced a proposal to provide senior ranked support for the funding of Links Finance Corp. and Parkland Finance Corp., and said it is continuing its discussions with a number of counterparties on restructuring alternatives for Apex/Sitka Trust.

Tom Flynn has been appointed chief risk officer, taking over from Bob McGlashan who announced his intention to retire late last year.

Flynn has been with BMO since 1992 and has served as interim CFO since October 2007. Prior to that, he was executive vp, finance and treasurer.

Russel Robertson joins BMO as interim CFO from Deloitte and Touche LLP in Toronto, where he has served as vice chairman since 2002.

Tom Milroy has been appointed CEO of BMO Capital Markets, succeeding Yvan Bourdeau. Milroy joined BMO in 1994 and has been co-president of BMO Capital Markets for the past two years.

Bourdeau will in turn become vice chairman of BMO Capital Markets, taking on account coverage while continuing to focus on the execution of the firm’s China/international objectives.

As well, Eric Tripp, who also served as co-president of BMO Capital Markets, will take on the role of president, BMO Capital Markets.

The bank will release its first quarter results on March 4.