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American bankers: Credit crisis can repeat
25 October 2007On the eve investment bank Merrill Lynch&Co has promulgated the financial reporting for III quarter 2007, which has appeared rather unfavorable.
It is spoken in the document that the bank has written off actives for the sum of 7,9 billion dollars under the bonds, provided by hypothecary credits, and also to the credit derivatives, which have depreciated as a result of crisis in the market of the brave mortgage in the USA.
In analysts’ opinion, these data speak only about one: the largest American bank does not manage to supervise risks. And many investors are afraid, that in the further the developed situation can lead to a new coil of August credit crisis.
It is necessary to note, that about two years back main Merrill Lynch executive director executive director has declared that the bank takes up additional risks. Now Merrill Lynch executive director recognizes that the estimation of potential risk and compensatory measures was inadequate. However, thus it has been added, that the bank will continue to incur risk in absolutely various markets - from raw up to currency. Merrill Lynch general director marks that they keep confidence of their skill to operate the capital and risks.
However, not all experts adhere to such optimistically point of view. Brave managers agree with opinion: problems of the largest in the USA investment bank are caused by that computer system of the company cannot trace market cost of property and risks.
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