JPMorgan Chase and Bank of America are expected to disclose losses of about $3 billion in mortgage securities and leveraged loans when they report third-quarter earnings this month, the Financial Times reports.
JPMorgan is likely to report mark-to-market losses on leveraged loans of about $1.4 billion and an additional $700 million in write-downs of mortgages and mortgage-backed securities, according to Howard Mason, analyst with Sanford Bernstein, the paper reported.
Mason estimated to the Financial Times that Bank of America will take write-downs of $700 million for leveraged loans and mortgage write-downs of $300 million, the paper said.
Other banks have already reported billions of dollars in loan losses as a result of credit turmoil in recent months, Reuters reports.
Citigroup took a pretax write-down of $1.4 billion as of the end of the third quarter.
Bear Stearns said last month it was writing down its $7.6 billion portfolio by about $250 million, or 3.2 percent. Morgan Stanley wrote down its $31 billion portfolio by $726 million, or 2.3 percent.