Goldman ups writedown estimates for Citi, JP Morgan, Merrill

0 Comments | AFP, December, 2007

NEW YORK (AFP) — Goldman Sachs on Thursday raised its fourth-quarter estimates for billion-dollar asset writedowns at Citigroup, JP Morgan Chase and Merrill Lynch as a result of squeezed credit.

Goldman Sachs said it expects the financial markets would not fully absorb the current credit crises initially stemming from a US housing slump until mid-2008.

Rising foreclosures resulting from defaults on subprime mortgages -- home loans given to people with poor credit histories -- has tightened credit sharply since August.

"Although we have seen many firms take the appropriate actions in recent weeks as they relate to write-downs and capital raises, we still believe it will be a couple of quarters before the current credit crisis is fully digested by the...