U.S. Mortgage Crisis Could Cost Banks $650 Billion

IndustryWeek (04/08)
U.S. housing woes could cost the banking system as much as $650 billion, Credit Suisse economists have cautioned. The economists write: "Thus far, losses have totaled $278 billion, suggesting that perhaps just over 40 percent of what needs to be revealed has been revealed." Credit Suisse's estimate is lower than that of the International Monetary Fund (IMF), which recently projected $945 billion in total losses. Lending institutions alone could face $390 billion in losses, resulting in capital increases similar to UBS' $13 billion bailout by Singapore's state investment fund and an unnamed Middle Eastern investor.