Azerbaijan, Baku / Trend / JP Morgan, a largest international investment bank, expects the total losses caused by the mortgage crisis in the United States to make up 260bln, Reuters reported.
According to forecasts, financial organizations' losses will comprise about $400bln. US real estate is also expected to drop in price by $2-4trln.
Crisis in US real estate market caused by mortgage credits which were unextinguished by unreliable debtors led to many billions of losses in the US banks. Thus, Merrill Lynch lost a total of $8.4bln, Сitigroup - $6.5bln, Morgan Stanley - $3.7bln.
Moreover, due to the crisis large financial institutions had to discharge their managers. A range of heads of departments in Citigroup, Merrill Lynch, UBS and Bear Stearns also left their positions.