SYDNEY, Aug 1, 2007 (AFP) - Shares in Australia's largest investment bank, Macquarie, dived 10 percent Wednesday as it became the country's third fund manager to be hit by the crisis in the US sub-prime loan market.

The sell-off came after the bank said retail investors in two high-yield Macquarie Fortress Investments funds faced losses of up to 25 percent or as much as 300 million dollars (258 million US).

COOLUM, Australia, Aug 1, 2007 (AFP) - Australia's treasurer sought to reassure investors in Macquarie Bank Wednesday as its shares plunged almost 10 percent on concerns about potential losses in the US sub-prime mortgage market.

Macquarie confirmed to the market that some of its funds faced large losses in the fallout from the crisis in the US sub-prime mortgage market, in which loans are made to customers with questionable credit ratings.

SYDNEY, Aug 1, 2007 (AFP) - Shares in Australia's Macquarie Bank slumped 7.0 percent Wednesday after it confirmed some of its funds faced large losses in the fallout from the crisis in the US sub-prime mortgage market.

Shortly after noon (0200 GMT), Macquarie Bank shares were down 5.74 dollars, or 6.96 percent, to 76.76 dollars.

The broader market was down about 1.6 percent.