Free Republic

Stress test shows bank credit losses could be $600 billion Ten of 19 institutions must raise $74.6 billion in private capital by November By Ronald D. Orol, MarketWatch Last update: 7:49 p.m. EDT May 7, 2009 Comments: 942 WASHINGTON (MarketWatch) -- Federal regulators released the long-anticipated, controversial stress tests on the health of the 19 largest financial institutions on Thursday, showing that the banking sector is secure, but under a pessimistic forecast, banks' credit losses over the next two years could be $600 billion.

WASHINGTON – The Obama administration kicked off a new program Wednesday that's designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments. The Treasury Department released detailed guidelines designed to let the lending industry know how to enroll borrowers in the program announced last month. "It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets," Treasury Secretary Timothy Geithner said in a statement. The administration, launching what it calls the...

Bank losses from credit crisis may run to $1,600bn, warns Bridgewater By Ambrose Evans-Pritchard Last Updated: 1:59am BST 08/07/2008 Bridgewater Associates has issued an apocalyptic warning to clients that bank losses from the worldwide credit crisis may reach $1,600bn (£800bn), four times official estimates and enough to pose a grave risk to the financial system. The giant US hedge fund said that it doubted whether lenders would be able to shoulder the full losses, disguised until now by "mark-to-model" methods of valuing structured credit. "We are facing an avalanche of bad assets. We have big doubts as to whether financial...