Goldman Sachs Forecasts $26 Billion in Bank Mortgage Losses

goldman sachs logo 5b5m 12 Goldman Sachs Forecasts $26 Billion in Bank Mortgage LossesThe good people at Goldman Sachs are putting a new price tag on big banks’ exposure to private-label mortgages. According to an analyst report, the tab runs at $26 billion for the big four — Bank of America, JPMorgan Chase, Citigroup and Wells Fargo.

Goldman also said that the stock market has reduced its valuation of the four banks by $28 billion as investors have tried to value the potential losses. Private-label mortgages are mortgages from private companies, rather than government-sponsored entities Fannie Mae and Freddie Mac.

To cap off a pesimistic forecast, Goldman cut its price target for BofA, PNC Financial and Wells Fargo — while endorsing Citigroup and JPMorgan Chase as industry leaders.

mtaylor [at] observer.com | @mbrookstaylor

Article continues below
More from Politics
Councilman Jumaane Williams, center, leads the protest with State Senator Marisol Alcantata, left, and Councilman Carlos Menchaca.
NYC Pols Get Arrested Blocking Traffic Outside Trump Tower During Inauguration