Credit crisis losses head for $4 trillion
on April 9, 2009

IMF right.jpgTo misquote the famous HL Mencken phrase, “nobody ever went broke under-estimating the losses caused by the credit crisis”.
Initially, Fed chairman Ben Bernanke estimated the losses at just $100bn.
Then, a year ago, the IMF said its estimate was $1 trillion. Now, the IMF is raising its estimate even higher, this time to $4 trillion.
According to The Times, the Fund expects $3.1trn of these losses from US-originated assets, and $900bn from EU lending. Even more worryingly, as Nouriel Roubini points out, these estimates do not include prospective losses from corporate loans to highly-indebted companies. According to respected analyst Mike Mayo, the banks are still carrying these loans at close to face value.

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  • Chemicals & The Economy
    May 27, 2010

    Major banks “window-dress” quarterly accounts

    Its bad enough that many of the world’s major banks collectively lost $4 trn, whilst continuing to pay themselves $bns in bonuses. Equally sad was the fact that the heads of these banks seemed unable to understand the simple principle…

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