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Financial market losses could top 1,600 billion dollars: report

Posted By admin On July 7, 2008 @ 5:31 am In Money Watch | Comments Disabled

DPA [1]
Monday, July 7, 2008

Geneva – The global financial crisis could lead to losses of 1,600 billion dollars for financial institutes, according a report in the Swiss Sunday newspaper SonntagsZeitung. It quoted a confidential study by the hedge fund Bridgewater Associates as saying losses for banks holding risky assets could be four times greater than the 400 billion dollars previously estimated.

The hedge fund expressed doubts that the financial institutes would be able to drum up enough funds to cover the losses, something it said could exacerbate the crisis.

Bridgewater, one of the world’s biggest hedge funds, based its calculations on the state of risky debt-based US assets, such as mortgages, credit and credit card demands.

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The value of such risky assets is 26,600 billion dollars, according to the hedge fund. The losses would amount to 1,600 billion dollars if these assets were valued at market rates and not in the form of securitization, the newspaper said.


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URL to article: http://www.prisonplanet.com/financial-market-losses-could-top-1600-billion-dollars-report.html

URLs in this post:

[1] DPA: http://www.earthtimes.org/articles/show/217143,financial-market-losses-could-top-1600-billion-dollars-report.html

[2] The 2 Billion Dollar Loss By JP Morgan Is Just A Preview Of The Coming Collapse Of The Derivatives Market: http://www.prisonplanet.com/the-2-billion-dollar-loss-by-jp-morgan-is-just-a-preview-of-the-coming-collapse-of-the-derivatives-market.html

[3] The Meltdown Of The Hedge Funds – And Its Effect On The Market – Was Foreseeable: http://www.prisonplanet.com/the-meltdown-of-the-hedge-funds-and-its-effect-on-the-market-%e2%80%93-was-foreseeable.html

[4] Soros Says Financial Crisis Marks End of a Free-Market Model: http://www.prisonplanet.com/soros-says-financial-crisis-marks-end-of-a-free-market-model.html

[5] FDIC Hits Record “Default” Level As Deposit Insurance Fund Plunges By $12.7 Billion To NEGATIVE 20.9 Billion: http://www.prisonplanet.com/fdic-hits-record-default-level-as-deposit-insurance-fund-plunges-by-12-7-billion-to-negative-20-9-billion.html

[6] Mortgage-backed securities that brought about the financial crisis earned the U.S. Treasury $25 billion: http://www.prisonplanet.com/mortgage-backed-securities-that-brought-about-the-financial-crisis-earned-the-u-s-treasury-25-billion.html

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