Apparently, reports by Atlantis Financial have revealed that this month alone many major banking companies including Citigroup, Merrill Lynch, Morgan Stanley and Bank of America have reported billions in losses on investments backed by mortgages.
In addition, sources say that Atlantis Financial’s researchers have found that losses from the current turmoil in the mortgage market could eventually approach those seen in the late 1980s, when the savings and loan industry collapsed under heavy wave of real estate defaults.
A spokesman for Atlantis Financial reportedly stated that this time around, bad mortgage debt may cost banks as much as $400 billion by the time the credit crisis is over.
