Tuesday, Feb 26, 2008
Yet more credit woes for the financial powerhouses
Bloomberg: Goldman, Lehman May Not Have Dodged Credit Crisis
* Variable interest entities (VIEs) may contribute another $88bn in losses for banks roiled by the collapse of the housing market - CreditSights Inc.
* A fire-sale of VIEs has "Always been our greatest fear," Gregory Peters - Morgan Stanley
* Wall Street firms may be forced to return those assets to their books, recording the declining value as losses.
* VIEs, aka conduits, had $784 billion in commercial paper outstanding as of last week - Moody's Investors Service & the Federal Reserve.
* "Predictions for losses vary widely because banks aren't required to specify the type of assets being held in VIEs or how much they are worth," Tanya Azarchs - S&P
Posted by 51ck-6-51x @ 08:40 AM (163 views) Add Comment
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