Subprime Losses
May 4, 2008 – 1:02 pmThis table summarizes the losses by banks and securities firms as a result of the subprime crisis. Source: Bloomberg. If you are faced with a question on how to rank the losses resulting of the subprime crisis (see video here, via Bayesian Heresy), you might want to have the right answer ready.
Bloomberg writes on the difference between writedown and credit loss:
Investment banks and the investment-banking units of financial conglomerates mark their assets to market values, whether they’re loans, securities or collateralized debt obligations, and label that a “writedown” when values decline. Commercial banks take charge-offs on loans that have defaulted and increase reserves for loans they expect to go bad, which they label “credit losses.” Commercial banks can have writedowns on holdings of bonds or CDOs as well.
| Firm | Writedown | Credit Loss | Total |
| UBS | 38 | 38 | |
| Merrill Lynch | 25.1 | 25.1 | |
| Citigroup | 21.4 | 2.5 | 23.9 |
| HSBC | 3 | 9.4 | 12.4 |
| Morgan Stanley | 11.7 | 11.7 | |
| IKB Deutsche | 9 | 9 | |
| Bank of America | 7.3 | 0.9 | 8.2 |
| Deutsche Bank | 7.4 | 7.4 | |
| Credit Agricole | 6.5 | 6.5 | |
| Credit Suisse | 6.3 | 6.3 | |
| Washington Mutual | 0.3 | 5.5 | 5.8 |
| JPMorgan Chase | 2.9 | 2.1 | 5 |
| Wachovia | 2.9 | 2 | 4.9 |
| Canadian Imperial (CIBC) | 4 | 4 | |
| Societe Generale | 3.8 | 3.8 | |
| Mizuho Financial Group | 3.4 | 3.4 | |
| Lehman Brothers | 3.3 | 3.3 | |
| Barclays | 3.2 | 3.2 | |
| Royal Bank of Scotland | 3.1 | 3.1 | |
| Goldman Sachs | 3 | 3 | |
| Dresdner | 2.7 | 2.7 | |
| Bear Stearns | 2.6 | 2.6 | |
| ABN Amro | 2.4 | 2.4 | |
| Fortis | 2.3 | 2.3 | |
| Natixis | 1.9 | 1.9 | |
| HSH Nordbank | 1.7 | 1.7 | |
| Wells Fargo | 0.3 | 1.4 | 1.7 |
| BNP Paribas | 1.3 | 0.3 | 1.6 |
| DZ Bank | 1.5 | 1.5 | |
| National City | 0.4 | 1 | 1.4 |
| Bank of China | 1.3 | 1.3 | |
| Bayerische Landesbank | 1.3 | 1.3 | |
| Caisse dâEspagne | 1.3 | 1.3 | |
| LB Baden-Wuerttemberg | 1.3 | 1.3 | |
| Nomura Holdings | 1 | 1 | |
| Sumitomo Mitsui | 1 | 1 | |
| Gulf International | 1 | 1 | |
| European banks not listed above | 8.4 | 8.4 | |
| Asian banks not listed above | 4 | 0.7 | 4.7 |
| Canadian banks excluding CIBC | 2.4 | 0.1 | 2.5 |
| TOTALS | 206 | 25.8 | 231.8 |
- European banks whose losses are smaller than $1 billion each are in this group: ING Groep, Allied Irish Banks, Bradford & Bingley, Aareal Bank, Deutsche Postbank, Lloyds TSB Group, Standard Chartered, Northern Rock, HBOS, Dexia, WestLB, Commerzbank, NordLB, Rabobank, HVB Group, Sachsen LB, Intesa Sanpaolo.
- Asian banks with writedowns smaller than $1 billion: Mitsubishi UFJ, Shinsei, Sumitomo Trust, Aozora Bank, DBS Group, Australia & New Zealand Banking Group, Abu Dhabi Commercial, Bank Hapoalim, Arab Banking Corp., Fubon Financial, Industrial & Commercial Bank of China, Citic International, BOC Hong Kong, Bank of East Asia.
- Canadian banks included in this group: Bank of Montreal, National Bank of Canada, Bank of Nova Scotia, Royal Bank of Canada.