John Paulson, president of Paulson & Co, the hedge fund manager which made some of the biggest profits from the global credit crisis, said mortgage-related losses for troubled financials could reach $1,300bn, compared with writedowns so far of $380bn. He spoke amid fresh evidence that banks are struggling to regain their earnings power and properly value their assets. Morgan Stanley said Q2 profits plunged 60% to $1bn; Thornburg Mortgage said the SEC had issued subpoenas in its investigation of a 2007 earnings restatement; and prosecutors prepared to file criminal charges against two former Bear Stearns hedge fund managers in a case that raises questions about how they valued assets.

This entry was posted by Gwen Robinson on Thursday, June 19th, 2008 at 5:41 and is filed under Capital markets, People. Tagged with bear stearns, John Paulson, morgan stanley, Paulson & Co, Thornburg. Edit this entry.