Tuesday, September 15, 2009
Them’s big scary numbers!
"Moody's, which last week reconfirmed the UK's AAA credit rating, expects losses at banks and building societies to reach Â£240bn. Lenders have taken Â£110bn of losses so far and face another Â£130bn over the next few years. The agency explained that it "expects the sustained weakness of the UK macroeconomic environment to feed through into higher loan arrears with ensuing pressure on profitability and capital". Moody's report came as research from FTI Consulting found that a majority of leading global fund managers do not believe the financial crisis is over. Of 153 fund managers interviewed in 15 countries with â‚¬2.8 trillion (Â£2.5 trillion) of funds under management, 64pc said there was worse to come for the banks."