IMF issues $4.1trn write-down warning

In its semi-annual Global Financial Stability Report, the IMF says banks are likely to bear the brunt of about two-thirds of the $4.1trn write-downs on some $58trn of assets originated in the US, Europe and Japan. However, other institutions will also be impacted. With mounting write-downs depleting the equity of the banks, the IMF says more capital is urgently needed which could be at least $125bn for the UK by 2010, according to one scenario. It concludes further decisive and effective policy actions will be needed to stabilise the international financial system. "The global response ...