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Wall Street Banks Brace Themselves For More Losses

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http://business.timesonline.co.uk/tol/busi...icle4332925.ece

Wall Street is bracing itself for the worst with the start of the latest round of banking results as the continuing decline in the housing market shows no sign of abating.

Citigroup, Wall Street’s biggest victim in the housing crisis, with more than $45 billion (£22.5 billion) of credit-crunch related losses so far, is expected to suffer the biggest loss on sub-prime investments in the second quarter — of about $9 billion, according to Goldman Sachs. This would leave America’s biggest financial services group with a $0.58-a-share loss — a significant decline on the $1.24-a-share profit posted in the same period last year. Revenues are forecast to have fallen from $26.63 billion last year to $17.72 billion in this year’s second quarter. Citigroup reports on Friday.

Gary Crittenden, chief executive of Citigroup, which has lost about $180 billion of its market value in the past 18 months, gave warning last month that his bank would take "substantial additional marks on our sub-prime exposure" if current trends continue. He also predicted that Citigroup would continue to suffer losses on its exposure to loans made to back private equity buyouts and on bond insurance and said the bank would need to keep raising capital reserves to cover bad loans, which he said "could have a meaningful impact on our results for the remainder of the year".

Merrill Lynch, which has suffered more than $30 billion of losses relating to investments in sub-prime mortgages in the past nine months, is expected to suffer a further $6 billion of writedowns when it announces its second-quarter results on Thursday. The quarter's writedown from the credit crunch would leave the group with a loss of $1.91 a share, down from a $2.24-a-share profit last year, as revenues tumble by about a third to $3.27 billion, according to analysts' consensus estimates. Merrill has lost about $60 billion of its market value in the past 18 months.

How can these banks keep absorbing these types of losses, surely the game will soon be up?

Who in their right mind would give banks any more real money to lose?

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http://business.timesonline.co.uk/tol/busi...icle4332925.ece

How can these banks keep absorbing these types of losses, surely the game will soon be up?

Who in their right mind would give banks any more real money to lose?

They can't.

It's over, we all know that but soon it will be official. Queues in the streets, enforced bank holidays, empty shelves in shops the whole thing.

Maybe this week, maybe next week if we knew exactly when we would be billionaires but sooner rather than later it all goes BOOM.

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http://business.timesonline.co.uk/tol/busi...icle4332925.ece

How can these banks keep absorbing these types of losses, surely the game will soon be up?

Who in their right mind would give banks any more real money to lose?

When you're a Sovereign wealth fund like the ones in the middle east and all your wealth is built on a finite resource you need to make plans now to provide for your children in the future. Either you believe that the world will end soon anyway so you don't invest and just spend it all on rolls royce's, or you put it into a sector that has had the worst battering of any sector since the dotcom crash but one which historically has made lots of money. If their share price goes down just average down as you're only worried about what the share price will be in 50 years time when your oil runs out and you need your invesments to pay for your camels and turkish delight.

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They can't.

It's over, we all know that but soon it will be official. Queues in the streets, enforced bank holidays, empty shelves in shops the whole thing.

Maybe this week, maybe next week if we knew exactly when we would be billionaires but sooner rather than later it all goes BOOM.

But would there be any point in being a billionaire??? Where would you keep you money?

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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