Wall Street battered by fresh bank writedowns

Mounting fears over further heavy losses in the financial sector pushed Wall Street down for a third day after three leading US banks revealed further evidence of the damage being caused by the credit crisis.

Bank of America, the country’s second largest bank, and JP Morgan Chase, the third largest, admitted that they too could be hit by the worsening crisis. The news came as Wachovia, the fifth largest bank, said it faced a $1.7bn (£812m) fourth-quarter hit.

The Dow Jones slid 247 points at one stage, a fall of nearly 650 points over three days, as the flood of bad news cemented the view that the final three months of year will throw up even more losses.

JP Morgan, which revealed it had $40.6bn of leveraged loans and unfunded commitments on its balance sheet at the end of September, said it faces “further markdowns … if market conditions worsen for this asset class.”

Wall Street battered by fresh bank writedowns – Telegraph

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