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LBO Debt May Be Written Down 10%: Merrill Lynch (MER) And Goldman Sachs (GS) At Risk
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Bank of America has release a study showing the levels of LBO write-downs that large banks and brokerages may have to take. The figures are based on a "the current series of the U.S. leveraged loan derivative index, LCDX, has fallen to 91.15 cents on the dollar on Monday," according to Reuters. Based on this calculation, the numbers stretch well into the billions of dollars
Firm LBO Exposue Potential Write-Off
Citigroup (C) $43 billion $4.3 billion
Goldman Sachs (GS) $36 billion $3.6 billion
JP Morgan (JPM) $26.4 billion $2.6 billion
Morgan Stanly (MS) $20 billion $2 billion
Merrill Lynch (MER) $19 billion $1.9 billion
Data from Reuters
Douglas A. McIntyre
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