Wednesday, November 3, 2010

Foreclosure Crisis: Losses May Top $26B - TheStreet

Foreclosure Crisis: Losses May Top $26B - TheStreet:
"NEW YORK (TheStreet) -- Goldman Sachs says the largest U.S. banks face 'potential losses of $26 billion spread across several years' as they are forced to buy back securitized mortgages or take other credit losses on loans going through the foreclosure process.

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U.S. Bancorp| USB
Citigroup Inc.| C
A report issued today by Goldman Sachs Investment Research says that better-than-expected third-quarter results for the largest banks were overshadowed by headline risk from private-label mortgage securitizations, according to a report issued today.
Between JPMorgan Chase's (JPM) release of third-quarter earnings results on October 13 and Wells Fargo's (WFC) third-quarter release on August 20, the largest four banks - which also include Citigroup (C) and Bank of America (BAC) -- lost $28 billion in market capitalization, according to Goldman.

Goldman's report focused on the six largest-cap U.S. banks, also including PNC Financial Services (PNC) and U.S. Bancorp. (USB)"

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