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Investors Ask: Who's Next?

Posted Mar 17, 08 6:54 AM CDT in Business 

(Newser) – Wall Street, reeling over JP Morgan’s bargain-basement purchase of Bear Stearns, is anxiously watching to see “who’s next” to succumb to the continuing credit squeeze, reports the Financial Times. As investment banks prepare to release first quarter results this week—led by Goldman Sachs and Lehman Brothers tomorrow—the mood is grim. “Short-sellers could have a field day with bank stocks this week,” said one banker.

Experts say US banks could write off another $50 billion in loans in the first two quarters, on top of the $100 billion already lost; the financial segment of the S&P 500 Index has lost more than 20% of its value this year. Lehman is likely to report $500 million in new writedowns, the FT says, and even Goldman, which has fared much better than rival banks during the credit crunch, is expected to report a tough quarter, including as much as $3.5 billion in writeoffs.

Source Financial Times (UK)

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Chart shows intraday trading for Bear Stearns.   (AP Photo)
Last weeks near-collapse of Bear Stearns has investors worried about the next Wall Street crisis.   (AP Photo/Mark Lennihan, file)
A woman holding an umbrella walks past the entrance of Bear Stearns headquarters. JPMorgan Chase said Sunday it will acquire rival Bear Stearns for a bargain-basement $236.2 million.   (AP Photo/Jin Lee, File)
Bear Stearns headquarters is shown March 16, 2006 in a New York file photo. JPMorgan Chase said Sunday March 16, 2008 it will acquire rival Bear Stearns for a bargain-basement $236.2 million.   (AP Photo/Mark Lennihan, File)
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Financial Crisis • subprime crisis • Wall Street • Citigroup • Lehman Brothers • Bear Stearns • Goldman Sachs • JPMorgan Chase


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