The US regional banks are certainly the next set of financial institutions in the US that are going to get hit by the credit crisis. While these banks did not have significant exposure to the CDOs and RMBSs and other types of derivative instruments that have caused the majority of writedowns to date, they do have large exposure to the housing and construction industry.

2008 05 19 Crédit Agricole boosts risk controls after writedowns hit €3.3bn2008 05 19 Subprime Losses Top $379 Billion on Balance-Sheet Marks: Table2008 05 19 Banks Keep $35 Billion Markdown Off Income Statements2008 05 19 AIG to raise roughly $20 billion in capital2008 05 20 Credit Crisis Will Extend Into 2009, $170 bn in additional [...]

Surprise, surprise. Consider this a holiday surprise as many are out in the U.S. for Memorial Day and in the UK for the Bank Holiday. Multiple sources were reporting that UBS warned in its 985-page capital raising prospectus late on Friday that it anticipates potential further losses in its non-U.S. property portfolio. [...]

Another side effect of the credit crunch is the lack of availability of cheap debt financing for businesses. Companies have two alternatives: they can hold off on needed financing until the credit markets are more inviting or they can raise money through alternative means like convertible bonds and rights issues (equity offerings). According [...]

I don’t know if you caught the Bloomberg article about the $35 billion in missing writedowns, but I thought it was about time I exposed it. Bloomberg news says:
Banks and securities firms, reeling from record losses resulting from the collapse of the mortgage securities market, are failing to acknowledge in their income statements at [...]

The list of financial institutions needing capital because they lost so much in the credit crisis grows by the day. Now, its the insurance company AIG. After their abysmal earnings report, they need an enormous $20 billion to tide them over.
According to MarketWatch, the news reads:
On Friday, AIG completed public offerings of new [...]

As the epicenter of the credit crisis has clearly moved to Europe, British Banks are at the center of new developments. However, doubts still exist about how they are valuing their assets and accounting for loan losses. Yester day the Times of London reported that activist investor Knight Vinke is publicly questioning HSBC’s writedowns due to losses from Household International’s loans.

The list below is the largest collection of links related to the present credit crisis on the web. I have been amending this list since May 2008. But, as the list is pretty large now, I have taken care to break it up into different sections. Please use the Index to move around this post and find just what you are looking for.

Today, Fannie released horrible quarterly financial results. The company lost $2.2 billion and is now looking to shore up its capital base.
Fannie said an estimate of its fair value of net assets was $12.2bn at the end of the first quarter. This was 66 per cent lower than the value of $35.8bn assigned at [...]

Recently, I have started to shift my focus out of the U.S. and abroad as the subprime crisis has become a global credit crisis. The myth of global de-coupling (assumption that other economies could thrive without the help of the American consumer) is being dispelled daily. Countries to watch are Canada, Mexico, China, [...]