Financial services industry losses near $1 trillion

Losses in the financial services industry since early 2007 are inching closer to the $1 trillion mark, according to data compiled by Bloomberg LP. Since January 2007, banks and insurance companies have reported $918 billion in credit losses and write-downs, and those numbers are expected to rise, owing to declining values of debt securities, according to New York-based Bloomberg. Financial-sector losses include $692.5 billion at banks and $149.2 billion at insurance companies. New York-based American International Group Inc., which was given an $85 billion loan by the federal government two months ago to stay afloat, has taken the brunt of the insurance sector struggles, with $60.9 billion in credit losses and write-downs in the past 22 months (InvestmentNews, Sept. 17). Charlotte, N.C.-based Wachovia Corp., which was acquired last month by San Francisco-based Wells Fargo & Co., is the banking sector’s biggest loser, with $96.5 billion in combined write-downs and credit losses since early 2007 (InvestmentNews, Oct. 12).