Goldman Sachs Chief Executive Officer Lloyd Blankfein told a New York conference yesterday that the largest U.S. securities firm by market value doesn't plan ``significant'' writedowns from subprime-mortgage securities. Bank of America said its losses will be restricted to $3 billion next quarter and UBS AG analyst Glenn Schorr said the potential for losses at Lehman Brothers Holdings Inc. is ``negligible.''
From the latest IMF report
I could be wrong and all of the problems in the financial sector could be front loaded. But with three years of resets out there (chart 1) and increasing delinquencies that undermine the underlying assumptions of most CDO structures (chart 2), I have a hard time believing that.
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