$10 billion here, $10 billion there, and soon you're talking about real money. Just like ENRON.
Too bad Deutsche and others haven't figured out the REAL ugly truth yet. That the mark-to-market markdown will be in the HUNDREDS of billions if not trillions by the time its done, with bank failures everywhere. Get ready everyone.
Even the super-SIV that was supposed to help hide the truth is blowing up as people come to realize it was a big scam. Well, then again maybe they all know, and they just don't want to admit it yet. After all, they still have some shares to dump ya know.
Meanwhile, Citi axed its CEO tonight and will be shocking the market with another massive markdown. But no surprises for HP'ers. We knew all along.
LONDON -- Banks are likely to mark down another $10 billion of mortgage assets in the fourth quarter, according to one analyst's estimates.
Deutsche Bank analyst Michael Mayo said in a note Thursday that banks and brokerages are likely to see their earnings pressured through the rest of 2007.
Merrill Lynch & Co. Inc. and Citibank Inc. are expected to be hit the hardest. Mayo estimated each bank would write down $4 billion in the fourth quarter.
He said Bear Stearns Cos. Inc., Morgan Stanley, Bank of America Corp. and Wachovia Corp. are also likely to take markdowns.