Financier Loses $8bn In 4 Trading Days

Stress - Ivar van Bussel

It's a good job that Carlos Slim is the richest man in the world - how else could you afford to lose $8bn of your net woth in 4 short days ?!

Bloomberg reports that, according to its data, Mexican billionaire Slim's stock portfolio was down $8bn (or 9.5%) in the four business days since 29th July. The market falls since then will not have helped.

In the meantime, CNBC reports that Bank of America has said in a securities filing that the cost of buying back mortgages from Fannie Mae and Freddie Mac has already hit $7.8bn. Pretty high when you consider that earlier this year the bank estimated that additional claims would not be more than $3bn.

The news channel also reported that some folks over at Goldman had a bad day Friday, as the firm's prime brokerage unit experienced an IT glitch which caused trade processing and reporting delays.

And Bloomberg reports that JPMorgan experienced trading losses on only 2 business days in the second quarter. Traders bagged over $200m in profits on 4 days during the first-half of the year.

Finally, the news agency reports that Morgan Stanley CEO James Gorman has been busy buying his firm's stock. Gorman purchased 100,000 shares last week, and now holds a $20m stake in the business. Securities head Paul Taubman is said to have purchased 50,000 shares, while CFO Ruth Porat bought 25,000.


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