Subprime crisis 'worse than 1998', says S&P

The continuing crisis in US subprime mortgages could be worse for the market than the 1998 Russian default, according to rating agency Standard & Poor's.

In a study released this week, credit analyst Nick Hill, wrote that a "harsh but plausible stress test" predicted 47% drops in investment banking and trading revenues for the largest banks. "This is more severe than in 1998, reflecting in particular potential markdowns on leveraged finance exposures and structured credit," he wrote.

The losses w

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