DundeeWealth Inc. has reported a $121.4 million loss for the third quarter after taking a $133 million charge on the sale of its Dundee Bank subsidiary to Bank of Nova Scotia in September.

The loss includes a $57.6 million writedown of asset-backed commercial paper.

But the wealth management company still has $340.6 million worth of asset-backed paper on its books. DundeeWealth bought it from the Dundee Bank before the Scotiabank sale, it said in its financial statements released after markets closed on Wednesday.

In its financial statements, DundeeWealth said is not sure of the value of the paper, so it wrote it down by about 15% or $57.6 million. The value is expected to become clearer on December 14, when a group of holders are expected to deliver a plan to deal with the paper under the Montreal Proposal.

DundeeWealth said the loss for the three months ended Sept. 30 was $121.4 million, or $1.06 a diluted share, compared with a loss of $1.1 million, or 1¢ a diluted share, a year earlier. The 2006 figures have been restated to remove the effect of Dundee Bank.

Revenue was $172.9 million, compared with $149.2 million, restated.