Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 6:05:56 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Goldman Sees Bigger Losses for Big Banks

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

(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

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Banks Owe Execs Billions— in Previous Years' Pay

    Oct 31, 08 8:00 AM CDT
    Banks Owe Execs Billions— in Previous Years' Pay The financial titans receiving huge portions of federal bailout cash are sitting on some massive IOUs, but they aren’t to taxpayers or shareholders—the banks owe billions to their own executives for previous years' pay and pensions. Under the rules of the bailout, they can be paid with taxpayer dollars. At some firms, executives’ past pay dwarfs what the banks owe in pensions to their entire workforces, the Wall Street Journal reports.
    More »

  • Execs Were Paid $3B to Lay Credit Crisis Foundation

    Sep 26, 08 5:45 PM CDT
    Execs Were Paid $3B to Lay Credit Crisis Foundation More than $3 billion was paid to the chief executives of the five biggest financial firms on Wall Street in the run-up to the credit crisis, Bloomberg reports. While supervising bad mortgage-related credit bets that eventually brought the financial system to its knees, Merrill Lynch’s Stanley O’Neal took in $172 million in 2003-07, while Bear Stearns’ James Cayne took in $161 million. More »

  • 10 Banks Form $70B Fund to Stave Off Crash

    Sep 15, 08 5:27 AM CDT
    10 Banks Form $70B Fund to Stave Off Crash Ten of the world's largest banks have formed a massive liquidity fund to mitigate the effects of the Lehman Brothers meltdown, reports the Financial Times. All the investment banks will be able to borrow up to a third of the $70 billion fund in order to reduce volatility and stay in business while Lehman is being wound down. They will also be able to borrow from the Fed under newly relaxed terms.
    More »

  • Get Set for Disorderly Lehman Liquidation

    Sep 14, 08 7:24 PM CDT
    Get Set for Disorderly Lehman Liquidation Barclay's dropping out of a Lehman deal means that the Feds lost a game of chicken with the big banks holding Lehman mortgages, and now there will be a disorderly liquidation of Lehman assets, instead of the orderly liquidation that would have been possible with a real buyer, James Cramer writes on TheStreet.com. The question is how big a hit those owning Lehman mortgages will take. More »

  • Banks Bracing as Their Own Debts Come Due

    Aug 27, 08 9:24 AM CDT
    Banks Bracing as Their Own Debts Come Due Billions of dollars worth of floating rate notes—vehicles used by banks to borrow money—taken out in 2006 are coming due in the next few months, and the industry is bracing for a wave of bank failures and asset sales as institutions struggle to pay off obligations, the Wall Street Journal reports. As a result, analysts say, credit will tighten further, worsening the US economic slowdown. More »

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)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 4)

Tags

credit crisis • Citigroup • Merrill Lynch • Goldman Sachs • JPMorgan Chase • bank • earnings forecast


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »