Goldman Sachs estimates that losses from the credit crisis since March 2009 will total $2.1 and $2.6 trillion. Banks have recognized about $1.6 trln of those losses thus far. That puts the US financial system about two-thirds of the way through the crisis.
The steep yield curve being engineered by the Fed, allowing banks to borrow at near-zero and lend (often via merely buying US Treasuries) at several hundred basis points, should help them close the remaining one-third gap in the months and years ahead.
