The $37B Roubini Forgot at Wells Fargo [View article]
Sir, your attack it totally misplaced. I never made any prediction about credit losses in individual US banks. I only used macro variable to forecast average losses on tranches of different types of loans and securities for the AGGREGATE of US banks; this is the same approach used by the IMF and Goldman Sachs to derive estimate of aggregate expected credit losses for all US banks, not for individual institutions. It was Time magazine that used my macro estimates of average losses to then make inferences and estimates about individual US banks. When you go to the individual bank level you of course need to take into account individual banks's provisioning and other details to infer capital losses. So you may or may not be right about what is happening at Well Fargo; but the comments you make have NOTHING to do with what I have written. So you should correct the record on this. I never wrote that Well Fargo has an additional $117 billion of losses. I have provided an estimate of aggregate credit losses for all US financial institutions based on standard estimated of average losses from macro assumptions.
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Sir, your attack it totally misplaced. I never made any prediction about credit losses in individual US banks. I only used macro variable to forecast average losses on tranches of different types of loans and securities for the AGGREGATE of US banks; this is the same approach used by the IMF and Goldman Sachs to derive estimate of aggregate expected credit losses for all US banks, not for individual institutions. It was Time magazine that used my macro estimates of average losses to then make inferences and estimates about individual US banks. When you go to the individual bank level you of course need to take into account individual banks's provisioning and other details to infer capital losses. So you may or may not be right about what is happening at Well Fargo; but the comments you make have NOTHING to do with what I have written. So you should correct the record on this. I never wrote that Well Fargo has an additional $117 billion of losses. I have provided an estimate of aggregate credit losses for all US financial institutions based on standard estimated of average losses from macro assumptions.
Feb 27 01:14 AM
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All Comments by Nouriel Roubini »The $37B Roubini Forgot at Wells Fargo [View article]