[OPE] Year After Subprime Crash, Risks Remain Elevated, Says IMF

From: A.VB (valle@servidor.unam.mx)
Date: Tue Jul 29 2008 - 12:56:52 EDT


Credit quality across many loan classes has begun to deteriorate with 
declining house prices and slowing economic growth. Although banks have 
succeeded in raising additional capital, balance sheets are under 
renewed stress and bank equity prices have fallen sharply," the IMF's 
/Global Financial Stability Report Market Update/, released on July 28, 
said.

The /Update/ notes that banks have been fairly successful in raising 
equity so far, amounting to about three-fourths of the writedowns to 
date, adding that IMF analysts had little reason to change earlier 
estimates of aggregate potential losses from the crisis of $945 billion 
published in April. However, the renewed stress has made raising 
additional capital more difficult and increased the likelihood of a 
negative interaction between banking system adjustment and the real 
economy, the report added.

Full article at: 
http://www.imf.org/external/pubs/ft/survey/so/2008/NEW072808A.htm


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