Subprime, CDO Bank Losses May Exceed $265 Billion

killer2021

interesting article

Losses from securities linked to subprime mortgages may exceed $265 billion as regional U.S. banks, credit unions and overseas financial institutions write down the value of their holdings, according to Standard & Poor's. S&P cut or put on review yesterday the ratings on $534 billion of bonds and collateralized debt obligations tied to home loans made to people with poor credit, the most by the New York- based firm in response to rising mortgage delinquencies. While banks and securities firms such as Citigroup Inc. and Merrill Lynch & Co. accounted for most of the $90 billion in writedowns to date, S&P said the next round will be borne mainly by smaller financial institutions in Europe, Asia and the U.S. The ratings actions may create a ``ripple impact'' that further reduces prices of the securities, S&P said.

http://newdailyview.blogspot.com/2008/01/subprime-cdo-bank-losses-may-exceed-265.html

Snaggles

Hiya - thanks for the link - although this is the US, it has a big impact on the UK economy too, and it's a worrying trend.

HairyHandofDartmoor

Is this why my bank charges have just gone up!

ZTD

Oh well, if you want US doom and gloom...