JPMorgan, Bank of America write down loans

[Akoto]

Source: Reuters

Report: Banks to disclose losses of $3 billion in mortgage, leveraged debt

NEW YORK - JPMorgan Chase and Bank of America are expected to disclose losses of about $3 billion in mortgage securities and leveraged loans when they report earnings this month, the Financial Times reported, citing an analyst.

JPMorgan is likely to report mark-to-market losses on leveraged loans of about $1.4 billion and an additional $700 million in write-downs of mortgages and mortgage-backed securities, according to Howard Mason, analyst with Sanford Bernstein, the paper reported.

Mason estimated Bank of America will take write-downs of $700 million for leveraged loans and mortgage write-downs of $300 million, the paper said.

Other banks have already taken losses on the value of their holdings in mortgage-backed securities and leveraged loans.

Read more: http://www.msnbc.msn.com/id/21191494/

[TroubleMan]

1. Quick let's make a run on these banks and see what happens.

Might as well get it over with right now...LOL.

[cliss]

2. I think it's more.

I think they're seriously understating their losses. They're just stating a fraction.

How can I make that claim? 2 months ago, BNP Paribas tried to sell their portfolios entitled 'USA Subprime mortgages'. They had been trying for several months to sell them. They had no takers. Finally, they had to freeze the accounts and the jig was up.

If you have NO TAKERS your stuff is worthless. It has no value. So the US banks are in the same position. I don't see them selling their portfolios.