October 04, 2007
Anyone keeping track of how many billions of dollars have already been lost on the housing crash and mortgage meltdown? Deutche Bank adds $3 billion
But wait, there's more!
Nobody is "marking to market" yet - they're all still "marking to fantasy". And they're only dealing with subprime, when we all know that trillions of dollars of true housing "wealth" has already disappeared if homedebtors' loans were truly "marked to market", and it's just gonna get worse. CEPR estimates $8 trillion for starters.
FRANKFURT, Germany (AP) -- Deutsche Bank AG said Wednesday it will write off about $3.12 billion in losses from the U.S. mortgage morass
Deutsche Bank said in a statement that it would take a charge of approximately 1.5 billion euros ($2.13 billion) on residential mortgage-backed securities, structured credit products, along with as much as 700 million euros ($991.6 million) on its leveraged loans and loan commitments.
The troubles at the German bank underscore the widespread impact of failed U.S. loans to people with weak credit, also known as subprime mortgages. Similar writedowns are hurting other big banks, including Citigroup and UBS, though analysts believe that investors and not account holders will feel most of the pain.