Bank of England Doubles Bailout Estimate
Apologies for the error in the first sentence (they had a US dollar figure in the original article, which is contradicted by the title). From The Independent:
BoE warns credit crisis losses could hit 2.8trn Pounds
By Sean O’Grady, Economics Editor
Tuesday, 28 October 2008
Global bank losses as a result of write-offs on mortgage-backed and other badly devalued securities will spiral to $2.8 trillion before the credit crunch is over, according to the latest estimates produced by the Bank of England.
The figure is around double the Bank’s previous estimates and calculations by the IMF. It suggests that, while the recent injections of bank capital by governments may help stabilise the financial system, it is far from fully over the ravages of the credit crisis.
The Bank says that the losses for the UK’s banks will run to 122.6bn pounds, against a forecast of 62.7bn pounds made in April. For the US and the euro area, it gives figures of $1,577.3bn (was $738.8bn) and 784.6bn (previously 344.1bn euros) respectively.
