Thursday, July 19, 2007

How can a USD52 billion loss go unnoticed?

Banks losing up to $52 bln over subprime

NEW YORK - Credit Suisse analysts estimated banks could lose up to $52 billion over time due to their exposure to collateralized debt obligations that invested in U.S. subprime mortgages. Most of the losses would stem from loans to hedge funds, compared with an expected $5 billion to $10 billion from banks' direct investment in subprime CDOs, the Credit Suisse analysts said in a report dated July 6. The global financial system can absorb such losses, the analysts said, but the prospects for the subprime mortgage sector remains murky. The risks of CDO downgrades by rating agencies and further depreciation in the U.S. housing market could result in erosion in CDO values, according to the report.

Posted by lvmreader @ 08:36 PM (446 views)
Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>