What, You Thought It Was Over?

fallout.jpg

Banks May Write Down $70 Billion, Oppenheimer Says

Jan. 30 (Bloomberg) — Citigroup Inc., Merrill Lynch & Co., UBS AG and other banks may be forced to post up to $70 billion in writedowns should bond insurers lose their top credit ratings, according to Oppenheimer & Co. analyst Meredith Whitney.

Citigroup, Merrill Lynch and UBS AG, which have already suffered the biggest losses from the collapse of the subprime mortgage market, according to Bloomberg data, hold 45 percent of the “entire market risk,” Whitney wrote in a note to clients dated yesterday. MBIA Inc. and Ambac Financial Group Inc., the biggest so-called monoline insurers, are on review for possible downgrades by Moody’s Investors Service and Standard & Poor’s.

Emphasis added by me.

Question: If they have 45%, where’s the other 55%?

No, it’s not over yet.

Not even close.

Advertisements
Explore posts in the same categories: C.O.A.T. - Money

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: