Reuters reports that Fox-Pitt Kelton analyst David Trone has said that JPMorgan Chase could take as much as $16bn on provisions for credit losses this year.

Trone said in a recent research note: 'We see the ABS-CDO / subprime debacle yielding to a more general weak credit cycle, and impending problems in consumer and corporate are likely to hurt JPMorgan as much, if not more, than peers'.

The Wall Street Journal reports that Oppenheimer analyst Meredith Whitney has forecast that Merrill Lynch will writedown $5.8bn in the second-quarter, and that the firm will post losses over the next two years. Merrill's stock hit 52-week lows Tuesday. Ms Whitney estimates Citi's second-quarter writedowns at $12.2bn.

Despite UBS chairman Peter Kurer coming out earlier this week and saying that his firm is 'over the worst' of the credit crisis and that the bank will not need a major capital infusion, Citi analyst Jeremy Sigee said in a note Wednesday that the Swiss bank may post additional writedowns of $6.9bn in the second-quarter, and could have to raise more capital.

Bloomberg reports that shares in Legg Mason touched a five-year low earlier this week as investors stressed out over the deterioration of the firm's money market business and the poor performance of some of its stock funds. Legg shares are down around 45% this year.

Shares in Deutsche Bank recovered Wednesday after the German bank issued a short press release which said that, based on its current expectations, it anticipates reporting a profitable second quarter when it announces quarterly earnings as scheduled on 31 July. The statement, which is hardly a ringing endorsement, continued that 'based on this outcome the bank........does not expect its financial performance in the second quarter to result in a requirement for further capital'. Deutsche shares are down around 41% this year.

Bloomberg reports that the Dow Jones Industrial Average has now fallen over 20% from its previous high, officially entering a bear market for the first time since 2002. And Reuters reports that, since 1900, whenever the Dow has fallen into a bear market, it has on average fallen 30% before recovering. And a bear market usually lasts for just over a year. The Financial Times reports that Japan's Nikkei 225 average fell for the 10th day Wednesday (down 1.3% to 13,286.37), which is its longest continuous losing streak since 1965.

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