Friday's Headlines: US mortgage mess cost top banks at least $66 billion
America's mortgage debacle has cost the country's top five home lenders at least $65.7 billion, Bloomberg reports. New claims across the industry may double that amount.
Citing its own research, Bloomberg reports that Bank of America had the biggest losses, worth $39.1 billion since early 2007. JP Morgan Chase racked up $16.3 billion of losses while Wells Fargo lost $5.09 billion.
The data was compiled by Bloomberg from regulatory filings, corporate documents and public presentations by America's five largest home lenders. It covers everything from asset write-downs to payments to reimburse investors for lost value on faulty mortgages.
The numbers show that actual damages from the mortgage crisis are far worse than originally predicted by bank executives.
UBS alleged rogue trader charged with fraud by UK police, reportedly admits trades. [Wall Street Journal]
UBS trader worked on Delta One desk, a big money making business across Wall Street. [DealBook]
Morgan Stanley's John Mack to retire as chairman, succeeded by CEO James Gorman. [New York Times]
Citigroup adds checking, savings account fees as it prepares for new regulation. [Reuters]
Goldman to close quantitative Global Alpha hedge fund after posting big loss. [Financial Times]
US authorities investigate Israel's largest banks for allegedly helping US clients evade taxes. [Reuters]
Swedish regulator says banks strong due to capitalization, liquidity. [Dow Jones News Wires]
Citigroup wants to unwind $2 billion of CLOs made for BlackStone, Prudential. [Bloomberg]
Wells Fargo sues JP Morgan, wants to return 800 soured mortgages. [Reuters]
China's Citic Securities to go public in Hong Kong on October 6. [Financial Times]