Credit crisis write-downs and losses tipped to hit $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 say...