Banks financing Liverpool’s loans announce record losses

Monday. Bloody Monday. It was a bloodbath on the Asian and European stock exchanges as they reacted badly to the weakening US economy. And in an ominous sign the two banks financing Liverpool’s loan are in bit of hot water themselves.
Today Wachovia announced a 98% loss in profits for the fourth quarter. This was due to a writedown of more than £1b. Earlier RBS reported a £950m writedown, considered a conservative estimate, as its chairman could not rule out further losses. Analysts predicted a shortfall of £2b.
I have no idea if the proposed RBS- Wachovia loan of £350m to cover the costs of Liverpool’s new stadium and player transfers will come through but the real issue for the banks is those huge annual £30m repayments by two businessmen who have potential cash flow problems themselves.
Suddenly that DIC takeover looks pretty good.

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