Aug. 30, 2007 (LPAC) - Warnings of collapse continue full steam:

* The leading Swiss news daily, Neue Zuercher Zeitung, today reports Moody's warning that another hedge fund collapse of LTCM size cannot be ruled out, adding an assessment by the Geneva analysts firm Dominice & Co which thinks that the collapse of a big hedge fund is even very likely, sometime during September-October.

* A gloomy outlook for the coming weeks was issued by Standard & Poors, with a warning that profits at the big investment banks on Wall Street and the City of London will collapse by 70% in the second half of this year if the credit crunch continues. Revenues would collapse by 47%, following the same pattern which followed the collapse of LTCM and the sovereign debt default by Russia, according to a report in The Times, today.

* Two major conduit funds are on the verge of collapse: The German West Landesbank may soon shut down its Brightwater fund, with admitted exposure of 1.2 billion euros on the U.S. mortgage market; the German IKB is expected to shut down its Rhinebridge fund in the U.S.A., with an exposure of 2.4 billion dollars.