Uk Banks To Post Another £130b In Losses

[Willy Weasel]

From Bloomberg (my emphasis):

U.K. banks are less than half way through posting 240 billion pounds ($398 billion) of losses on loans and securities, a reflection of the U.K.’s economic weakness, according to Moody’s Investors Service Ltd.

British banks are likely to record 130 billion pounds of losses in the next 12 to 18 months, in addition to 110 billion pounds lost since the beginning of the credit crisis, Moody’s said today in a report.

The company “expects the sustained weakness of the U.K. macroeconomic environment to feed through into higher loan arrears with ensuing pressure on profitability and capital,†it said.

The U.K. has provided about 1.4 trillion pounds of support to banks, becoming the biggest shareholder in Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc as it seeks to shore up capital eroded by writedowns. British banks have raised about 120 billion pounds of capital from the beginning of the credit crisis to mid-2009, Moody’s said.

Moody’s has a “base case scenario†of a 40 percent peak- to-trough decline in house prices and a 60 percent decline in commercial property from the peak, the report said.

[Timm]

Moody’s has a “base case scenario†of a 40 percent peak- to-trough decline in house prices and a 60 percent decline in commercial property from the peak, the report said. [/i]

Nothing to add: I just wanted to hear them say it again.

[interestrateripoff]

More taxpayer money needed or will Brown's banking bailout cover this?

I'm still expecting banking bailout 3.

[Bloo Loo]

they cant post the truth...AAA 27c on the dollar, and AA 4c on the dollar.

that would make them insolvent....which of course they are.

I wonder if the "haircuts" the BoE gave on emergency loans reflected these values....96% haircut......I doubt it.