Summary
The year-long credit crisis may be only at the halfway point and defaults of higher-quality mortgages and problems at US bond insurers are expected to exert a drag on future bank earnings, Standard & Poor's said yesterday.
Mortgages known as Alt-A securities and problems at bond insurers, known as monolines because they traditionally provided services to only one industry, may hit bank earnings in subsequent quarters, S&P credit analyst Tanya Azarchs said "We believe there could be further monoline write-downs that banks will have to take," Azarchs said. "We're expecting more fairly significant problems to come."See the full content of this document
Extract
S&P Predicts Things Can Only Get Worse Now ; Economy
The bond insurers beca...
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