Home > Credit crunch ’at $1.2 trillion’
Credit crunch ’at $1.2 trillion’
The credit crunch will globally cost $1.2 trillion (£600bn) according to a report from the bank Goldman Sachs.
The report says 40%, or $460bn, of those losses will hit US banks, brokerages and other institutions.
Goldman estimates that US financial firms have already reported losses of $120bn since the credit crunch began.
Banks made huge losses on investments backed by US mortgages. That is now hampering their ability to loan money, which threatens US economic growth.
"US leveraged institutions have written off less than half of the losses associated with the bursting of the credit bubble," the report said.
"There is light at the end of the tunnel, but it is still rather dim," it added.
The credit crunch caused the near collapse of US investment bank Bear Stearns earlier this month.
The bank’s clients - worried about losses on mortgage-backed investments - started to withdraw funds, forcing it to ask for emergency funding.
Days later JP Morgan Chase announced a deal to buy the company.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/7313637.stm
Published: 2008/03/25 20:49:44 GMT
Forum posts
26 March 2008, 13:38
We will be in New York City this Wednesday March 26th to protest this corporate bailout and to assist homeowners.
We are doing intakes from 9:00 a.m. to 12:00 noon at the Park Avenue Christian Church at 85th street and Park Avenue.
At 12 noon we will protest the taxpayer bailout of these predators. We will be demanding assistance for homeowners with unaffordable mortgages. Your participation is crucial in getting the Government to stop the interest rate increases, stop the foreclosures, and make mortgages affordable. Please plan on taking part in this important action. Click on the Action Link here to participate or to have a NACA representative;
https://www.naca.com/index_main.jsp