Many large Wall Street firms tout the depth and breadth of their research expertise. But as we face one of the greatest financial crises since the Great Depression, it is interesting AND revealing to see how major financial services firms have fared. According to Bloomberg.com (4/1/08), some experts estimate that there has been $1 trillion in write downs and credit losses through April 1, including:
UBS ..................................................... $38 billion
Merrill Lynch......................................$25 billion
Citigroup..............................................$24 billion
HSBC.................................................. $12 billion
Morgan Stanley..................................$12 billion
Bank of America.................................$8 billion
JP Morgan Chase...............................$5 billion
Wachovia ............................................$5 billion
Goldman Sachs...................................$3 billion
The irony is that these losses have occurred in areas of the market once regarded as relatively safe and secure.
The firms tout their experience, the range of their resources, their research prowess, even the “safety” of investing with a large institution. Given what has happened recently, these claims ring a little hollow.
