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
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.
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’
Bloomberg, May 16 2008
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