Goldman, Lehman Brothers to feel impact of credit crisis

02/26/2008 | Bloomberg

Variable interest entities may be the newest source of potential losses for banks, and they may strike some that seemed immune to the credit crisis, such as Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. VIEs will contribute an additional $88 billion in losses for the investment banks, CreditSights Inc. estimates. After sidestepping the subprime-related write-downs other banks faced, Goldman said in January that VIE-related losses may cost it as much as $11.1 billion.

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