Banks Risk Losses In Fannie, Freddie Preferreds

Forex News Banks face record unrealized losses of $35B at the end of 2Q, Goldman Sachs says, due to new risks in preferred securities issued by Fannie Mae (FNM) and Freddie Mac (FRE), as well as losses stemming from the credit downgrades of monoline insurers. Firm estimates banks have $60B more capital to raise. Downgrades Zions Bancorp (ZION) to conviction sell based on high construction and land exposure, low capital ratios, risk of dilutive capital raising and potential securities losses