Tuesday, Nov 13, 2007

half trillion dollars of losses

BBC: Carnage on Wall Street as loans go bad

"But experts estimate that the total losses facing the financial sector could amount to between $150bn and $450bn, and that many of the banks have hidden losses that have been concealed in off-balance sheet instruments like "special investment vehicles".
"The gargantuan scale of potential losses is terrifying investors in banking stocks - which have fallen by 30% - as well as mortgage-bond investors."
"The reality is that most financial institutions have barely started to recognize the lower 'fair value' of their impaired securities,"
"The credit crunch is getting much worse and its financial and real fallout will be severe."
"One look at Citigroup, using SEC data, suggested that their potential liability could be $343bn rather than the $55bn they declared.
"

Posted by vfr @ 06:17 AM (197 views) Add Comment

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