Deutsche Bank Analyst Michael Mayo Feels Banks Will Lose Up To $10 Billion In Fourth Quarter

The sad effects of the housing market continue to impact many companies. In a recent study the current housing market looks as though it will drop immensely in the fourth quarter also for banking companies across the globe with housing assets. It looks as though Deutsche Bank analyst Michael Mayo believes that large banks like Merrill Lynch, Citibank, and Bank of America will lose a combined $10 Billion dollars during this upcoming quarter.

Mayo feels that the bulk of this pain will be by Merrill Lynch and Citibank. The impact on these loses are felt by the companies and many different aspects of the economy. Merrill Lynch already lost nearly $8 billion this last quarter and now it looks like it isn’t going to get any better and write downs will continue to happen. What is sad is that investors will have to continue to worry about these banks and their assets over the course of the next couple years. Mayo believes that it will continue down this path making it hard for investors like you and me to get good loans with good rates.