Credit Crunch- the Losers

The credit crunch the losers With a global economic downturn occurring there are bound to be groups of people who acquire severly losed out in this crisis. In our opinion these are the master(prenominal) categories of people: Banks- The losses incurred by Wall Streets biggest banks and a posse of Europes leading financial institutions run into the many an(prenominal) billions. ? Total bank exposure to the US sub-prime mortgage market, whose dedicate infected wider credit markets and triggered an almost oernight liquidity drought, is restrained far from clear. ? Short-term credit markets freeze up aft(prenominal) French bank BNP Paribas suspends three investment funds value 2bn euros ?During the following months, US and European banks report losses totalling hundreds of billions of dollars ?The European Central Bank and the Us federal Reserve pumps 95bn euros into the eurozone banking strategy to ease the sub-prime credit crunch ?The Federal Reserve has put the toll to the bottom line of banks and some other lenders of their sub-prime misadventures at $100bn. ?Taking into broadside other failed mortgage loans, devalued mortgage-backed securities and general bad debts, the planetary Monetary Fund said potential losses could return $945bn.

?Looking back in 50 years time, the call of Northern Rock and Bear Stearns are likely to stick around indelibly linked with the crisis when other details have faded. ?both companies were irretrievably damaged by their financial difficulties while other firms suffered grievous, if not terminal, injuries. ?Switzerlands UBS admitted it would take up to three years to reclaim its reputation for financial prudence after chalking up losses of $38bn. Homeowners- Homeowners ?US homeowners, arguably, have had to endure the most misery over the past year. ?As the value of their homes plummeted further, thousands found themselves in ostracise equity and, worse, unable to meet their mortgage payments. ?Despite authorities assistance to help people stay in... If you want to irritate a full essay, order it on our website: Orderessay

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