The numbers are not even close. The US bank write-offs are $1 Trillion so far. Remember LTCM? That was also $1 Trillion and that was just one hedge fund. We’re talking about the total of $11 Trillion in mortgage debt in the top 5 US banks.
As of January 2008, write offs are estimated to be $244 Billion from subprime and $700 billion from derivatives. My bets for banks that will close shop this year are Morgan Stanley and Citigroup.
