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Wall Streets writedowns continue into 2008, Merril Lynch, Citigroup Inc possible 35 billion plus asset write off

Posted by Adrian on January 15, 2008

Merrill May Suffer $15 Billion writedown. AOL

Citi likey to announce dividend cut, layoffs: report. Reuters

Wall Street’s $35 Billion Writedown Squeezes Profits (Update1). Bloomberg

from the links Bloomberg article:

“Great Depression”

Banks haven’t lost this much money, in relative terms, since the Great Depression, said Richard Sylla, a professor of the history of financial institutions and markets at New York University’s Stern School of Business.

U.S. banks, insurers and real-estate companies earned about $1 billion a year during the 1920s until the stock market crash of October 1929. The industry lost about $500 million in 1930, $1.7 billion in 1931, and $2 billion in 1932, Sylla said.

Within days of being inaugurated in March 1933, President Franklin Roosevelt issued an emergency order declaring a “bank holiday” to stem a run on deposits. About 7,000 banks, or a third of the U.S. total, failed and financial companies didn’t return to profitability until 1936, Sylla said.”

Possible depression implications as banks go into recession, as discussed briefly in World Crisis scenarios for the 21st century – Worldwide economic depression. (update 9)

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