by Calculated Risk on 4/21/2009 09:12:00 AM
Tuesday, April 21, 2009
IMF: Global Losses may hit $4.1 Trillion
From Bloomberg: IMF Says Global Losses From Credit Crisis May Hit $4.1
Worldwide losses tied to rotten loans and securitized assets may reach $4.1 trillion by the end of 2010 as the recession and credit crisis exact a higher toll on financial institutions, the International Monetary Fund said.Here is the Reuters report.
Banks will shoulder about 61 percent of the writedowns, with insurers, pension funds and other nonbanks assuming the rest ... The fund projected losses of $2.7 trillion at U.S. financial institutions, an increase from its estimates of $2.2 trillion in
January and $1.4 trillion in October.
The $4.1 trillion estimate is the first by the IMF to include loans and securities originating in Europe and Japan. ...
The report said U.S. bank losses at the end last year totaled $510 billion. Additional writedowns of $550 billion are expected through 2010. The projections exclude government-sponsored enterprises.
And from the WSJ: IMF: Banks Need $875 Billion in Equity