Begin forwarded message:
From: [EMAIL PROTECTED]
Date: July 8, 2008 8:12:17 PM PDT
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED]
Subject: Total Value of Future Bank Losses (Write-offs) Estimated at
$26.6 TRILLION
Financial market losses could top
1,600 billion [$1.6 trillion] dollars
Posted : Sun, 06 Jul 2008 17:01:01 GMT
Author : DPA
http://www.earthtimes.org/articles/show/217143,financial-market-losses-could-top-1600-billion-dollars-report.html
Geneva - The global financial crisis could lead to losses of 1,600
billion dollars for financial institutions, according a report in
the Swiss Sunday newspaper SonntagsZeitung. It quoted a confidential
study by the hedge fund Bridgewater Associates as saying losses for
banks holding risky assets could be four times greater than the 400
billion dollars previously estimated.
The hedge fund expressed doubts that the financial institutions
would be able to drum up enough funds to cover the losses, something
it said could exacerbate the crisis.
Bridgewater, one of the world's biggest hedge funds, based its
calculations on the state of risky debt-based US assets, such as
mortgages, credit and credit card demands.
The value of such risky assets is 26,600 billion dollars, according
to the hedge fund.
The losses would amount to 1,600 billion dollars if these assets
were valued at [lower] market rates and not in the form of
securitization, the newspaper said.
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