Banks may be recovering after US subprime losses: Citigroup
Citigroup chairman Win Bischoff said that banks may be emerging from a trough after losses caused by the collapse of the US subprime mortgage market.
By Bloomberg |
LONDON: Citigroup chairman Win Bischoff said that banks may be emerging from a trough after losses caused by the collapse of the US subprime mortgage market.
���In relation to the subprime area, we���re through the worst,��� Bischoff said at the London Gateway 2008 conference on Tuesday. ���I do not believe that there will be further very large markdowns in relation to that side of the business.���
Citigroup, the largest US bank, said on Tuesday that it will stop offering some home and personal loans in the UK and will fire 700 workers in the country. The New-York based lender has booked more than $40 billion of credit losses and writedowns since the subprime mortgage market collapsed.
���We���re still going to face a very challenging time in 2008, though as far as the subprime part, we���re very close to the bottom,��� Bischoff said. ���The economies are not in great shape and there will be losses which banks will suffer from their normal operations. We don���t yet know how wide or deep the ultimate losses will be for financial institutions.���
Bischoff was speaking at a conference organised by British American Business, which represents more than 700 companies operating in the UK and the US. His comments chime with those of billionaire investor George Soros, who said in an interview with BBC Radio 4 on Tuesday that the ���acute phase��� of the global credit crisis is over. He predicted the fallout will lead to recessions in the UK and the US.
���In relation to the subprime area, we���re through the worst,��� Bischoff said at the London Gateway 2008 conference on Tuesday. ���I do not believe that there will be further very large markdowns in relation to that side of the business.���
Citigroup, the largest US bank, said on Tuesday that it will stop offering some home and personal loans in the UK and will fire 700 workers in the country. The New-York based lender has booked more than $40 billion of credit losses and writedowns since the subprime mortgage market collapsed.
���We���re still going to face a very challenging time in 2008, though as far as the subprime part, we���re very close to the bottom,��� Bischoff said. ���The economies are not in great shape and there will be losses which banks will suffer from their normal operations. We don���t yet know how wide or deep the ultimate losses will be for financial institutions.���
Bischoff was speaking at a conference organised by British American Business, which represents more than 700 companies operating in the UK and the US. His comments chime with those of billionaire investor George Soros, who said in an interview with BBC Radio 4 on Tuesday that the ���acute phase��� of the global credit crisis is over. He predicted the fallout will lead to recessions in the UK and the US.
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