The Daily Telegraph reports that US Federal Reserve chairman Ben Bernanke has said that the problems facing the US economy from the fall-out of the US housing market are potentially more devasting than those it sustained from the collapse of the internet boom in 2001. Comparing the 2001 slowdown, Bernanke said that 'the effects of the stock market declines (then) were primarily on investments. In this case, consumers are taking the brunt of the effects'.

The Financial Times reports that CIBC has posted a $1.5bn first-quarter loss. The bank took a $2.3bn hit on writedowns and costs linked to US subprime mortgages. CEO Gerald McCaughey said that 'our losses related to the US residential mortgage market are a significant disappointment and are not aligned with our strategic imperative of consistent and sustainable performance' (Ed's note - Meaning: 'we didn't do it on purpose').

Reuters reports Germany's DZ Bank revealed $2bn in subprime lending-related writedowns Thursday, and CEO Wolfgang Kirsch warned that he couldn't rule out further writedowns, as 'it is very difficult to make a prediction for the current year'. The bank is said to still have exposure of some $40bn to 'risky debt instruments', including $4.5bn in subprime mortgages.

The Financial Times reports that American International Group (AIG) has posted a net loss of $5.29bn in its fourth-quarter, after write downs and losses of almost $15bn relating to subprime lending.

Bloomberg reports that London-based hedge fund Peloton Partners, a fund run by two former Goldman partners, is liquidating its $2bn ABS fund due to losses on mortgage-backed securities. The Peloton ABS Fund was named the best new fixed-income fund by EuroHedge magazine in 2007, a year in which the fund rose 87%.

The Wall Street Journal reports that, according to data compiled by Swiss bank Banquae Syz & Co, London-based hedge fund Richmond Capital, run by Luca Bechis - an experienced and well regarded trader - hasn't got off to the greatest of starts to the new year, losing over 50% in January.

Bloomberg reports that Josef Ackermann, Deutsche's CEO (and currently known as the 'prophet of doom' due to the number of negative statements he has recently made), has now said: 'One must expect that the next 6 to 9 months will remain difficult for the financial markets'. Ackermann said that there remain big 'losses in the system'.

Finally, Reuters reports that JPMorgan Cazenove CEO Robert Pickering said that 'it's going to be quite a tough first half for the business'. But not for him - he's announced that he is leaving the firm to spend more time fishing.

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