Monday, Nov 12, 2007
Now you have some!
Globe and Mail: Thought the subprime mess was bad? Wait till the accountants get involved
"There's already plenty of chatter about dealers' Level 3 exposure. Take Citigroup, for instance. In a recent SEC filing, they said they had $135-billion (U.S.) in Level 3 assets. They have an equity base of $128-billion, so their Level 3 exposure is 105 per cent of equity. Goldman has $72-billion in Level 3, or 185 per cent of their $35-billion in equity."
"And a report from the Royal Bank of Scotland this week predicted the total losses from Level 3 writedowns will be somewhere between $250-billion and $500-billion."
Oh my, oh my!
Posted by lvmreader @ 04:10 AM (466 views) Add Comment
5 Comments
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1. sosoon said...
The numbers on the RBS are very high, would this be financial Armageddon! Can somebody put some light on these figures?
2. Ill_handle_it said...
Is it just me or is whole situation being massively under reported by the media ?
3. Icarus said...
To clarify, this is RBS's estimate for the global finance, not for RBS itself. It would be interesting to look at the effects of all this on individuals rather than on organisations: Rising markets - big bonuses. Falling markets - big severence pay packets. Then lick your wounds, polish your CV and come back for the next rising market. No wonder these people/organisations make such big bets.
4. seanb303 said...
http://news.sky.com/skynews/business
stockmarket is in freefall again
i recon we'll hit 6000 points by the end of the week
5. dohousescrashinthewoods said...
techieman - we really have breached 6400 now - I guess there won't be a rally after all if your analysis holds?