Goldman Sachs says credit losses to hit $460bn

26 Mar 2008
A Goldman Sachs economist has estimated that credit losses at US leveraged financial institutions will total $460bn (€294bn) from the credit crunch, more than double what these companies have a thus far written down.

Goldman expects total credit losses at all institutions to ultimately reach $1.2 trillion.
But Goldman economist Andrew Tilton said in a report that the losses at leveraged institutions—including banks, broker-dealers, hedge funds and government-sponsored enterprises—are the most important because “they result in a substantial tightening in credit conditions as these institutions pull back on lending to preserve their reduced capital and to maintain statutory capital adequacy ratios.”

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