Next up - Credit Crunch Part 2
Recommend on Google+
Just when you thought things couldn’t get any worse, the world’s leading credit rating agency is predicting things are about to get tougher still for the world’s banks…
An interesting report in the Guardian this morning highlights the concerns of Standard & Poor about the second half of 2008. The fall-out from the turbulence of the last few weeks means that the value of problem assets (e.g. houses in the US) will have fallen further, increasing the exposure of the banking system.
The Standard and Poor’s report said its estimate earlier this year of total credit crunch losses of more than $250bn had now risen to $378bn - and could double to nearer $500bn as house prices in the US continue to fall.
These losses will have to be funded someone - either from existing banking reserves or by raising new capital from the likes of the sovereign wealth funds. Having just gone through a capital-raising process, will the banks be able to pull the trick off a second time around? There has to be a doubt.
blog comments powered by Disqus
Revision Presentation - Business & Interest Rates [7 Apr 2012]
Revision Presentation - Business Cycle and Economic Growth [6 Apr 2012]
Strategies to revive the High Street: Mary Portas reports [13 Dec 2011]
Banana Smoothies & Interest Rates [5 Nov 2011]
Economic Environment: Debt bombshell [28 Apr 2011]
The Year of Corporate Philanthropy [31 Jan 2011]
Sources of finance - bank loans down by £28 billion [15 Sep 2010]
Is the mega-merger falling out of fashion? [7 Jun 2010]
UK Recession - What Happened to Redundancies? [30 Mar 2010]
Pay-as-you-go holiday spending money [18 Jul 2009]
Business angels take flight - just when small businesses need them [12 Jul 2009]
Nationalisation Again - National Express Taken into Public Ownership [1 Jul 2009]
Sources of finance - the bank overdraft rip-off [28 May 2009]
Q&A - What are the main personal sources of finance an entrepreneur can obtain for a start-up? [27 May 2009]
Q&A - What are the benefits of business planning to a start-up? [1 May 2009]
Q&A - What is an interest rate? [1 May 2009]
Q&A - What is credit and why do businesses need it? [1 May 2009]
Q&A - What is a bank loan? [1 May 2009]
Small businesses in the middle of the crunch - insights for students [22 Apr 2009]
Football finances under the spotlight [5 Apr 2009]
Q&A - Why is the cash flow forecast so important? [1 Apr 2009]
Q&A - What is profit and why is it important? [1 Mar 2009]
Q&A - What are the advantages to a start-up of being a franchise? [1 Mar 2009]
Q&A - What is franchising? [1 Mar 2009]
Update on how 10 small businesses are weathering recession [20 Feb 2009]
More flak for the banks from business customers - what have they done with bail-out cash? [18 Feb 2009]
Why small firms suffer from unavailable bank loans [17 Jan 2009]
A good example of over-optimistic sales forecasting [10 Jan 2009]
A Great Example of Sources of Finance for a Partnership [9 Jan 2009]
Sources of finance for SMEs - Banks Squeezing the Life out of Businesses [3 Jan 2009]
Can Fresh Management Save JJB Sports? [2 Jan 2009]
The Biz Quiz - 6 October 2008 [5 Oct 2008]
The flight to safety [2 Oct 2008]
Lloyds HBOS is Born - One Extraordinary Day [17 Sep 2008]
HBOS on the brink of takeover [17 Sep 2008]
AIG is nationalised at the last minute [17 Sep 2008]
AIG on the brink of collapse [16 Sep 2008]
Meltdown Monday - The Nightmare Continues [15 Sep 2008]
Supermarkets under fire for price promotions that focus on fatty foods [3 Sep 2008]
Comfort eating to beat the credit crunch [31 Jul 2008]
Balance sheet blinkers [4 Feb 2008]
BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!
