Wednesday, April 2, 2008

Credit Crisis League Tables

Introducing the league tables that no one wants to be on the top of:

1) First the credit crisis "Writedown" league table:


All told there has been nearly a quarter of a billion dollars of write-downs and many are predicted this to rise to over $1 trillion over the next few years. Goldman Sachs is predicting $1.2 trillion.

2) Second the credit crisis "Capital Infusion" League Table:

Citi and UBS have been the most aggressive in raising capital and for good reason, they also have the largest losses. The only real shock here is that Merrill hasn't raised more cash.

3) Finally, this is the net effect of the writedowns and capital infusions for many of the large banks:
If this chart is any indication, Citigroup is in for another massive writedown. Some are predicting it will be in the $12-15 billion range, which compared to UBS's recent $19 billion writedown isn't all that shocking. This chart also hints that Merrill Lynch probably isn't done raising outside capital, look for them to take another chunk of money in the near future.

Data: Bloomberg

1 comment:

Anonymous said...

Very interesting. Thank you!!

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