Subprime Losses Could Top $500B: Report

Law360, New York (January 18, 2008, 12:00 AM EST) -- The subprime mortgage crisis currently wreaking havoc on U.S. capital markets could lead to massive losses worldwide, according to a new report that estimates global subprime losses could top half a trillion dollars.

The report, compiled by the Japan Research Institute and made public on Friday, claims that in the worst-case scenario, banks and investors stand to lose as much as $460 billion as a result of the credit crunch.

“We forecast the situation will not subside at least until the latter half of this year,...
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