The Big Boys Are Taking Big Losses

August 17, 2007 (LPAC) - To get a sense of why the biggest of the big bankers are screaming bloody murder and demanding massive bailouts by the complacent managers of the nation's wealth, consider:

  • JPMorgan Chase & Co., the biggest lender in the leveraged buyout market, may lose about $1.4 billion on loans it can't sell because of the credit crunch, according to an analyst at Citigroup Inc., reports Bloomberg. Goldman Sachs Group Inc., Deutsche Bank AG and other underwriters of loans to finance leverage buyouts face similar shortfalls.
  • The $5.9 billion Fidelity Real Estate Investment Portfolio, part of Fidelity Investments, lost 19.7 percent over the past weeks, or $1.17 billion. Franklin Resources Inc. and Kensington Investment Group Inc. are also big losers in a decline by U.S. real estate funds that wiped out $13 billion in the past three months, reports Bloomberg.