November 12, 2007

Bad news from banks this week!

The financial markets in the States are bracing themselves for some bad banking news this week as the banking sector will be reporting on its forth quarter, it is estimated that there may be as much as $20 billion in loses. This is due to the anticipated problems with the mortgage based loans and other debt problems associated with the sub prime market. After all if these people lose their homes they are hardly likely to be keeping up payments on everything else.

How this will effect the UK financial sector is unknown, this is because the full extent of how deep the UK banks are involved in the US market is not known, we know that there are links between the UK and US banking industries and yet how this will effect banking in the UK is still cloaked in secrecy.

Source [Trader Journal]