[T]he International Monetary Fund estimates that banks and other financial institutions face aggregate losses of $4.1 trillion in the value of their holdings as a result of the crisis...[F]inancial institutions would have to write down an estimated $2.7 trillion in loans and securities originating in the United States from 2007 to 2010...Banks are expected to shoulder about two-thirds of the write-downs...though other institutions, like pension funds and insurance companies, also face heavy losses...Banks have raised about $900 billion in fresh capital since the crisis began..., but that is far outweighed by $2.8 trillion in credit-related losses. The fund estimates that the banks have already taken about one-third, or $1 trillion, of those write-downs....United States...banks reported $510 billion in write-downs by the end of 2008 and face an additional $550 billion in 2009 and 2010. In the euro zone, banks reported just $154 billion in write-downs by the end of last year and still face $750 billion. British banks are in somewhat better shape: having written down $110 billion, they face $200 billion more, the fund said.
via I.M.F. Puts Bank Losses From Crisis at $4.1 Trillion - DealBook Blog - NYTimes.com.
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