Banks' Toxic Debt Losses Continue to Mount

Large U.S. and European banks losses on securities and bad loans could hit $2.5 trillion by the end of 2010, according to a published report citing IMF figures.
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) -- Large U.S. and European banks have lost a total of $1.04 trillion since the beginning of 2007 on securities and bad loans, and could see that number more than double by the end of next year, according to a published report.

The $1.04 trillion loss figure is based on


research and company annual reports and regulatory filings. International Monetary Fund estimates predict a surge to $2.5 trillion by the end of 2010, roughly split between losses on securities and loans,



Losses at U.S. financial institutions, including

Bank of America

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Fannie Mae


Freddie Mac

, which have taken the bulk of the hit, are expected to rise to $1.6 trillion. Losses at European banks are expected to rise to $737 billion, the IMF says.


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total losses from writedowns on toxic assets and troubled loans compose nearly 11% of the industry's total losses, making it the biggest loser so far during the financial crisis,


says. Citi was the only company to have losses in the triple digits, totaling $114.3 billion.


, acquired last year by

Wells Fargo

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, and Merrill Lynch, also acquired by BofA, ranked second and third on the list, with total losses so far of $77.4 billion and $63.7 billion respectively.



and BofA ranked fourth and fifth on the list with losses to date totaling $63.5 billion and $58.5 billion, respectively.

JPMorgan Chase

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ranked No. 14, with losses totaling just $25.1 billion. JPMorgan also acquired

Washington Mutual

, which had losses of $41.8 billion. WaMu last year became the largest bank failure in U.S. history.

Bank stocks were mostly rising early Thursday.

Written by Laurie Kulikowski in New York.