Germany’s Steinbrück: $400 Billion in Subprime Losses Possible

The Financial Times was among press outlets this weekend reporting remarks by German finance minister Peer Steinbrück after the recently-concluded G7 meeting, who said the world’s financial leaders now believe write-offs linked to subprime mortgage-backed securities could reach as high as $400 billion. That number trumps most previous industry estimates of the impact of the mortgage crisis, which pegged losses at $120 billion, and suggests that more trouble may be ahead for many of Wall Street’s largest banks. Bloomberg TV provided in-depth coverage of the G7, below: (if you receive HW via email, please visit the Web site to view the video)