Vegas
05-01-2008, 12:55 PM
http://www.breitbart.com/article.php?id=080501131837.zi29ul7a&show_article=1
The Bank of England said Thursday that commercial banks had overestimated their exposure to the collapsed US subprime home loan sector and the subsequent global squeeze on credit.
The bank did not quantify the overestimation, which it said could be a factor in a loss of confidence that has afflicted certain financial institutions.
A large number of global banks have declared heavy losses from US mortgage-backed securities, which were effectively bets placed on high-risk American borrowers repaying their mortgages.
The Bank of England said Thursday that commercial banks had overestimated their exposure to the collapsed US subprime home loan sector and the subsequent global squeeze on credit.
The bank did not quantify the overestimation, which it said could be a factor in a loss of confidence that has afflicted certain financial institutions.
A large number of global banks have declared heavy losses from US mortgage-backed securities, which were effectively bets placed on high-risk American borrowers repaying their mortgages.