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 at the end of August, the agency's credit analyst, Nick Hill, noted 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 mark-downs on leveraged finance exposures and structured

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