Billionaire hedge fund manager John Paulson has warned global credit crisis write-downs and losses could reach $1.3trn.
Speaking at the GAIM International hedge fund conference in Monaco today, the Paulson & Co hedge fund founder painted a far worse picture on the current crisis than the IMF, which estimated $945bn of total losses.
“We're only about a third of the way through the write-downs,” Paulson says.
The gloomy statement comes as US investment banking giant Morgan Stanley reported its Q2 net income plunged 60%, to $1.03bn.
It takes Morgan’s net income for the first six months of 2008 to $2.58bn, a 51% decrease on the corresponding period last year.
Morgan Stanley chairman and CEO John J. Mack says the firm remains “well positioned” despite the turbulent environment.
“The difficult market conditions and lower levels of client activity impacted our results, particularly in fixed income and asset management,” he says.
“However, Morgan Stanley's diversified business mix benefited the firm, with solid results in wealth management, prime brokerage, equity derivatives and our world-class international franchise.”IFAonline
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'Illusion of control'
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Total investment reaches £9m