JPMorgan Chase and Bank of America (NYSE:BAC) are expected to reveal losses of about $3bn on holdings of mortgage securities and leveraged loans when they report third-quarter results this month. This would take to more than $20bn the total writedowns announced by the world's leading banks as a result of the credit market turmoil over the summer. JPMorgan is likely to unveil mark-to-market losses on leveraged loans of about $1.4bn, in line with those reported by Citigroup last week, according to Howard Mason, analyst at Sanford Bernstein. He estimates it will suffer a further $700m of writedowns on mortgages and mortgage-backed securities, for a total of $2.1bn. For Bank of America, he estimates leveraged loan losses will be $700m and the mortgage writedowns $300m. Merrill Lynch last week said it had suffered $5bn losses. UBS said it had $3.7bn of writedowns, Deutsche Bank $3.1bn and Citigroup $2.7bn. Other banks with smaller capital markets operations such as Wachovia are likely to report writedowns. Last week, Washington Mutual said it would take a hit of $410m on mortgages held for sale, holdings of mortgage-backed securities and losses in its trading business. http://biz.yahoo.com/ft/071007/fto100720071746237130.html?.v=1 20bn ? Peanuts ! ....
You mean as bullish as UBS, Citi earnings releases ? Hmmmm.... I'm shocked to see you that bullish, Ivanovich!
Heh, it's not me speaking. It's the brainwashed Ivanovich. Truth is, no matter of negative news will cause the much needed correction to occur at this point. Silly is in season! For how much longer remains the question. This camel is carrying a lot of straw!