Financial Times FT.com

Financial groups hit by surge in loan losses

By Sarah O’Connor in Washington and Francesco Guerrera in New York

Published: September 25 2009 01:09 | Last updated: September 25 2009 01:09

The US financial sector’s losses on large loans exploded over the past year, exceeding the combined losses since 2001, with hedge funds and other members of the “shadow banking system” hit the hardest, official figures revealed on Thursday.

Regulators’ annual review of “shared national credits” – loans larger than $20m shared by three or more federally regulated institutions – highlighted the toll taken by the crisis on financial groups outside the traditional banking sector.

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