Sobering Thoughts From Bank Analyst
November 21st 2008 19:44
Apropos, of the last post about Citigroup, JJ Hornblass posts about Credit Losses Seen Doubling in 2009. Christopher Whalen, director of sales and marketing at Institutional Risk Analytics offers a very sobering outlook for credit losses in the financial arena going forward,
Here are a couple highlights of his assessment:
No Obama or any other politician has a fix. Only the market and time will do the job.
Here are a couple highlights of his assessment:
“we are about halfway through” the credit loss cycle
subprime credit losses won’t peak until next year.
Credit losses will go to 4% from 2%
We have a $32.5 Trillion problem with credit default swaps
Whalen sees AIG still going into bankruptcy (U.S. taxpayers will have wasted at least $150 Billion)
Finally, ALL current capital at banks will need to be replaced. All!
subprime credit losses won’t peak until next year.
Credit losses will go to 4% from 2%
We have a $32.5 Trillion problem with credit default swaps
Whalen sees AIG still going into bankruptcy (U.S. taxpayers will have wasted at least $150 Billion)
Finally, ALL current capital at banks will need to be replaced. All!
No Obama or any other politician has a fix. Only the market and time will do the job.
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