Monday, October 13, 2008

Total subprime writedowns and finacial losses.

I've already posted two times aggregated sum of writedowns caused by subprime meltdown. It is time to see updated version of losses for major financial institutions. This time I've added column with amount of raised capital and money infusions to respective institution.

Altogether financial losses account for USD 592 bln. Up to now raised capital and money infusion are USD 443 bln. You can see that since last time total sum has been almost tripled.

ticker losses capital received

Citigroup (C)
61 71
Wachovia (WB) 52.7 11
Merrill Lynch (MER) 52.2 29.9
Washington Mutual (WM) 45.6 12.1
UBS (UBS) 44.2 27.3
HSBC (HBC) 27.4 5.1
Bank of America (BAC) 27.4 30.7
JPMorgan Chase (JPM) 18.8 19.7
Morgan Stanley (MS) 15.7 14.6
IKB Deutsche Industriebank (IKBDF) 4.1 11.6
Lehman Brothers (LEHMQ) 13.8 13.9
Royal Bank of Scotland (RBS) 13.6 22.2
Credit Suisse (CS) 10.1 3
Wells Fargo (WFC) 10 5.8
Deutsche Bank (DB) 9.9 6

592.9 443

*losses includes subprime and mortgage writedowns, reserves for bad mortgages and loans, credit losses.

*capital received includes preferred shares, bonds, convertible bonds, direct stakes.


2 Responses to "Total subprime writedowns and finacial losses."

charlesbrownell said... October 14, 2008 at 2:30 AM

In addition to the people who have been foreclosed or are delinquent, there are repercussions in other areas of the economy. There will be many industries that are negatively impacted by a downturn in the housing market. For example:

• People in the mortgage closing business (mortgage brokers, processors, appraisers, title search & insurance, lawyers etc.)

• People in the financial services sector (50,000 layoffs as of May 2008)

• People involved in the construction business. By the time you include all the subcontractors it takes well over 100 people to build a house and if you are in a hurry and have the money the number of people goes up dramatically.

• People who provide products to the home building business (concrete, lumber, drywall, electrical fixtures, plumbing, HVAC, roofing, insulation, siding, windows, doors, flooring, granite, appliances, home furnishings, etc.)

• These are just a few examples; the impact is far and wide.

Contrarian Profits said... December 10, 2008 at 8:18 PM

This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the economic indicators confirm that the massive unwinding is nowhere near finished yet…