Contrary to this article it was known very early on that these investments were risky.
The Bankers trust, The very bank John Key worked for at the same time they developed these risky investements knew they were ripping of their customers. John Key worked for this bank from 1987 to 1995.
This by the way is not mentioned on his official website.
Citigroup, Merrill Lynch and JPMorgan Chase may face larger fourth-quarter debt write-offs than previously expected, and Citigroup may have to slash its dividend 40 per cent to preserve capital, according to a Goldman Sachs & Co analyst.
“It will be a couple of quarters before the current credit crisis is fully digested by the markets,” the analyst, William Tanona, wrote yesterday.
The analyst issued his forecast after banks said they would write off more than US$70 billion ($92.3 billion) because of the global credit crunch, as rising mortgage and credit losses led investors to shun debt once thought safe but now deemed risky.