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 ! ....
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 ! ....
