Banks have failed to make adequate provision for the losses on loans and securities they face before the end of next year, Moody's Investors Service said. U.S. banks may incur about $470 billion of losses and writedowns by the end of 2010, which may cause the banks to be unprofitable in the period, the ratings company said in a report published today...."The fundamentals of financial institutions are still traveling on a downward slope," Moody's said. "No-one should consider recent improvements as assurance that the current rebound can be sustained."
U.S. banks may incur about $470 billion of losses and writedowns by the end of 2010, which may cause the banks to be unprofitable in the period, the ratings company said in a report published today.
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"The fundamentals of financial institutions are still traveling on a downward slope," Moody's said. "No-one should consider recent improvements as assurance that the current rebound can be sustained."
