$32 Billion and Counting
Over the past few months, Wall Street firms, banks and other players in the mortgage market have written off more than $32 billion in collateralized debt obligations tied to subprime-related securities, according to a tally done by this newspaper.
What's more, a recent report issued by Deutsche Bank suggests that the ultimate cost to American financial institutions could be in the range of $130 billion.
To date, the largest writedowns have been suffered by Citigroup, a major player in both the subprime and CDO markets, and Merrill Lynch, which has been a major warehouse provider, issuer and seller of subprime-backed mortgage bonds. Citi officials have yet to specify its writedowns and instead offered a range of $8 billion to $11 billion. Merrill's writedown totaled $7.9 billion. Merrill is said to be considering a sale of its B&C production unit.
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