Subprime Writedown: Losses Per Employee

Here Is The City (London’s fastest growing financial website) put together a terrific chart: The Credit Crunch In Context.

It shows what the write-down losses work per per (wholesale banking) employee work out to be for each of the big banks and brokers.

The numbers are rather astounding:      


Company . . . . . . Writedowns . . . . . . Losses Per Employee
1. Mizuho Financial Group – $5.5bn in writedowns, 2,000 wholesale banking employees, $2,750,000 per employee.

2. Wachovia – $7bn, 3,900, $1,794,872 per employee

3. UBS – $37bn, 22,000, $1,681,818 per employee

4. Citi – $40.9bn, 30,000, $1,363,333 per employee

5. Bank of America – $14.8bn, 20,000, $740,000 per employee

6. Merrill Lynch – $31.7bn, 48,100, $659,044 per employee

7. Dresdner Kleinwort – $3.3bn, 6,000, $550,000 per employee

8. Credit Agricole – $6.9bn, 13,000, $530,769 per employee

9. Barclays Bank / Barclays Capital – $7.7bn, 16,200, $475,309 per employee

10. JPMorgan Chase – $9.8bn, 25,000, $392,000 per employee

11. Deutsche Bank – $7.6bn, 20,000, $380,000 per employee

12. SG Corporate & Investment Banking – $3.9bn, 10,500, $371,429 per employee

13. Morgan Stanley – $12.6bn, 38,050, $331,143 per employee

14. Credit Suisse – $6.3bn, 20,000, $315,000 per employee

15. Lehman Brothers – $6.6bn, 30,000, $220,000 per employee

16. Goldman Sachs – $4.1bn, 30,000, $133,667 per employee

17. BNP Paribas – $1.7bn, 13,000, $130,769 per employee

Astonishing . . .


An Incredible League Table – The Credit Crunch In Context
Here is the City, 17/05/2008

Category: Credit, Data Analysis, Derivatives, Finance

CREDIT CRISIS: Scholes vs. Paulson

Myron Scholes, chairman of Platinum Grove Asset Management LP and
1997 winner of the Nobel Prize in economics, said the worst of the
crisis in credit markets may not be over.

"From my perspective, I think that we don’t know if the storm has
passed or if we are still in the eye of the storm. Are there other shoes to
drop and new events or new shocks that will come to the fore?’ In my view, this is probably as bad or worse than the 1989-1990 crisis
and may even rival the worst crisis we’ve seen since the end of the
Second World War,” Scholes said.

click for audio


U.S. Treasury Secretary Henry Paulson said financial market conditions have improved to the point that they will be influenced more by economic forces such as housing than by the credit crisis.

"I expect that financial markets will be driven less by the recent turmoil and more by broader economic conditions, and specifically, by the recovery of the housing sector,” Paulson said in a speech in Washington. He reiterated his view that “we are closer to the end of the market turmoil than the beginning.”

click for video



Scholes, Nobel Laureate, Says Credit Crisis May Not Be Over
Vivien Lou Chen and Thomas R. Keene
Bloomberg, May 16 (2008

Paulson Says Capital Markets Show ‘Signs of Progress’
John Brinsley
Bloomberg, May 16 2008

Category: Credit, Derivatives, Video

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Paul Volcker on the Financial Crisis

Sunday afternoon video:

Paul Volcker describes the financial crisis to the Joint Economic Committee of Congress on May 14, 2008 – 7 1/2 min excerpt.

Paul Volcker on the Financial Crisis

The Federal Reserve has taken extraordinary emergency measures in response to the current financial turmoil. Tonight, I spoke with Paul Volcker, former Fed chairman and one of the most respected figures on the economy, in an exclusive interview. Here is what he had to say about the collapse of Bear Stearns and the role the central bank has played

Volcker on Charlie Rose

Category: Credit, Federal Reserve, Video


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The Recession Buy Indicator

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Copyright, Links, Fair Use & Reproduction

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Don’t be put off achieving your destiny, even if you have experienced failure in your life. This video mentions well known people who had failed, but kept pressing on until they became successful.

Category: Psychology, Video

New Wicki Critical of Pundits & Celebrities

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Estimated Relative Standard Errors in Housing Data

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