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Goldman Sees Bigger Losses for Big Banks

Posted Dec 27, 07 10:24 AM CST in Business    Most Covered

(Newser) – Goldman Sachs has some bad news for Citigroup, Merrill Lynch, and JPMorgan Chase: An analyst predicts even bigger fourth-quarter writedowns for all three firms than they've already cottoned to, thanks to continued exposure to collateralized debt. The losses will be “significantly larger than investors are anticipating.” How large is that? Try a combined $33.6 billion, the Wall Street Journal reports.  

New CEOs at Citigroup and Merrill will be especially writedown-happy, analyst William Tanona writes, estimating that Citi will take a whopping $18.5 billion fall, JPMorgan $11.5 billion, and Merrill $3.4 billion. His previous estimates were $11 billion, $6 billion, and $1.7 billion, respectively.

Source Wall Street Journal

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People leave the headquarters of Merrill Lynch & Co. in New York in this Nov. 14, 2007 file photo. (AP Photo/Jin Lee, file)   (Associated Press)
The Citigroup Center, left, is reflected in a neighboring building on Monday, Nov. 5, 2007 in New York. (AP Photo/Mark Lennihan)   (Associated Press)
The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs is shown in this June 12, 2007 file photo. (AP Photo/Richard Drew, file)   (Associated Press)
A man checks his PDA outside the headquarters of Merrill Lynch & Co., Wednesday, Nov. 14, 2007, in New York. (AP Photo/Jin Lee)   (Associated Press)
A Citibank sign is shown in New York in this Nov. 27, 2007 file photo. (AP Photo/Mark Lennihan, file)   (Associated Press)
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credit crisis  • Citigroup  • JPMorgan Chase  • Merrill Lynch  • Goldman Sachs  • bank


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