$400 Billion Losses

[pioneer]

Financial companies' losses due to the US sub-prime crisis could be as much as $400bn (£190bn), US investment bank Goldman Sachs has said.

The estimate by Goldman's chief economist Jan Hatzius is higher than that of the Federal Reserve but in line with some recent independent forecasts.

Mr Hatzius predicts leveraged investors may have to reduce their lending by $2 trillion as a result.

"The macroeconomic consequences could be quite dramatic," Mr Hatzius said.

source: http://news.bbc.co.uk/2/hi/business/7098368.stm