Posted on 02/13/2008 10:17:05 PM PST by bruinbirdman
The Financial Services Agency announced Wednesday that Japanese financial institutions incurred losses of 600 billion yen from April to December 2007 on investments related to U.S. subprime mortgages.
As of the end of December, Japanese financial institutions held about 1.52 trillion yen worth of securitized products backed by risky home loans, according to the financial watchdog.
Total losses--taking into account financial products sold, and various other factors --came to 442 billion yen. Appraisal losses on these products--as values fell after the products were obtained--reached 158 billion yen.
The 600 billion yen losses registered during the period more than doubled from a previous survey for April to September 2007. The figure is smaller than that of institutions in the United States and European countries, but there is a possibility that Japanese financial institutions' losses could expand further.
By business category, the losses suffered by large financial institutions, including major financial groups and the Norinchukin Bank, reached 542 billion yen--more than double that of the April-September period. Losses incurred by first- and second-tier regional banks totaled 37 billion yen, and cooperative organizations, including credit unions, lost 21 billion yen.
The survey was conducted via interviews.
The FSA only calculated losses incurred on securitized products directly related to subprime loans.
tram, ngan, trieu, nghin ti
the second line is in case the tone marks don't come through.
Good point. They don't even call their cancer wards, cancer wards.
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