Global subprime mortgage losses may exceed $300B

According to Deutsche Bank AG analysts, losses from the subprime mortgage defaults may reach between $300 billion to $400 billion worldwide.

Wall Street’s largest banks and brokers are expected to write off as many as $130 billion worth of subprime-related debt according to Mike Mayo, a New York-based analyst.  The rest of the losses are expected to come from smaller banks and investors.

Deutsche Bank expects 30 to 40 percent of the subprime mortgages to default.  There’s currently $1.2 trillion worth of U.S. home loans that are considered subprime out of the total $10 trillion out of outstanding mortgages.

You can read more about the global subprime mortgage losses at the Miami Herald.