6 Top Firms Said Likely To Writedown $27bn More In Q1
More in BUSINESS NEWS
back-up- 'No Jerk' Hiring Policies - Do They Work ?
- Lehman's $50bn - 'I Giggle A Little Bit'
- The Business Trip From Hell - The Full Saga
- Traders May Have Cell Phones Tapped
- Bernie Madoff Said To Have Got Prison Beating
- City Minister Says Every Bank Needs A 'Cynical Scot'
- Tullett Prebon Wins Unlawful Conspiracy Claim
- The Cityboy Column - Greed & The Post-Credit Crunch World
- Campus Recruitment - Hiring Firms
- Deep Blue Associates - Featured Recruiter of the Month
- Click Here To Register For Free News E-Mail Alerts
- Another PR Disaster For Major Firm
- Top Firm Pays $3bn In Bonuses To 'Risk Takers'
- Banker Wants $17.2m After Being Fired As He Was 'Too Successful'
- Mooning Window Cleaner Surprises Hedge Fund's Board
- How Do You Resign When Everybody In HR Is Leaving Too ?
- Top Firm Said To Have Considered Buying UBS
- Lehman's $50bn Whistleblower Fired
- Bear Stearns - Where Are The Main Players Now ?
- Top Firm Staff Said To Be Heading For Exits Over Pay
- Bear Stearns 2 Years On - 'R.pe' On Wall Street
- Probably The Greatest Bank CEO Rant Ever
- 'I Almost Threw Up When I Read The (Lehman) Report'
- Top Firm To Give Staff More Say In Running Organisation
- Lehman's Accounting 'Shenanigans'
- BofA, Barclays, JPMorgan, Northern Trust, RBS
- The Vic Daniels Column
- Here Is The City Careers Has Gone Through An Overhaul
- Top Firm Said Under Pressure To Break Itself Up
- The Fall Of Lehman - Official Report Pulls No Punches
- Pandit - 'The Tallest Midget In The Room'
- If Your Firm Was A World Cup Football Team........
- Greater Holiday Rights For Employees On Sick Leave
- And The Best Place To Find A New Job Is.......
- Bank Of America Sued Over Theft Of Parrott
- Recruitment Firms We Like
- Firm's Shares Rise As It Confirms Takeover Talks
- The Most Overpaid Person In The World - Poll Results
- Forbes Richest People In The World - The Top 10
- BNP Paribas Boss Admits Pay Is As Low As Possible
- 'My Bonus Isn't Big Enough' - What Can I Do ?
- Lindsay Lohan Seeks $100m From E-Trade Over Babymilkgate
- We're Looking For More Football Fans To Write For Us
- And The Best Place To Work In The Global Financial Markets Is...
- How's This For Irony ?
- No Way Out - Traders Over-Taxed, But Staying Over Here
- More Bonus News
- FDIC Chair Sheila Bair On Too Big To Fail & Regulation
- The Best Place To Work 2010 Results - The Top 100 Firms
- Dick Fuld - 'We Will Have Lehman Brothers Again'
Related Content
- Top Firms Get The Dreaded 'Bonus Letter' (12/01/2010)
- The Best Place To Work 2010 Results - The Top 100 Firms (06/03/2010)
- Top Firm Says Record Bonuses For Top Performers (08/01/2010)
- 'Why Are Top Bankers Still Regarded As 'Top Bankers' At All ? (25/01/2010)
- Recruitment Firms We Like (04/01/2010)
- Top Firm Says It Has Done Well Out Of The Crisis (04/03/2010)
The Wall Street Journal quotes from Goldman research, which says ' although many of the writedowns in the back half of 2007 focused primarily on subprime and CDOs, we expect first-quarter 2008 writedowns to be spread across all aspects of residential mortgage-backed securities including subprime, Alt-A and prime, commercial mortgage-backed securities and leveraged loans'. The firm is forecasting the following first-quarter writedowns:
Citi - $12bn
Merrill Lynch - $4bn
Lehman Brothers - $3.5bn
JPMorgan Chase - $3.4bn
Morgan Stanley - $3.1bn
Bear Stearns - $1.4bn
In the meantime, Oppenheimer analyst Whitney Meredith is saying that, in her view, first-quarter writedowns may well push Citi into a loss of some $1.6bn (far less, however, than the $9.8bn loss posted in the fourth-quarter).
Whilst Bloomberg reports that Merrill Lynch analyst Guy Moszkowski has cuts his first-quarter earnings estimate on Goldman, saying: 'Based on recent market movements, we are trimming our first-quarter forecast. Market action in February has been such that we need to take another look'. The news agency also reports that, according bond research firm CreditSights, Goldman may well be looking at incurring losses of some $11.1bn from assets held in VIEs, variable interest entities which allow firms to maintain assets like subprime-mortgage securities off their balance sheets. Concerns are now growing that losses from VIE assets could be the next shoe to drop, which may result in another $88bn in losses from banks playing the debt-backed securities game.
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
