US banks Citigroup and Merrill Lynch reveal fresh $15bn loss
Merrill will suffer $5 billion of write-downs, analysts say, which would push the bank $2.7 billion into the red. t is expected to knock a further 20% from the value of its sub-prime holdings, in spite of the fact that it announced $18 billion of write-downs only three months ago. The new rash of Wall Street losses and write-downs come in addition to the billions that have already been recorded.
The world’s biggest banks have suffered losses and write-downs totalling almost $250 billion since the beginning of 2007, according to analysts. Last week the IMF shocked markets by saying that global losses from the credit crisis could rise to $945 billion.
The language becomes even more extreme as the losses balloon.
Related: Fed Continues Wall Street Welfare – Credit Crisis (Aug 2007) – Central Bank Intervention Unprecedented in scale and Scope – Soros Says Credit Crisis Will Worsen Before Improving – Volcker: Spendthrift Americans Bred Credit Crisis
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“AIG would be doing fine today if they never heard of derivatives… I said they were possibly financial weapons of mass destruction and they have been, I mean they destroyed AIG…”