Bankers Face Grim Truth: Worst Is Yet to Come

December 12, 2007
Bankers Face Grim Truth: Worst Is Yet to Come

AS the credit crisis sweeps wildly through Wall Street, major investment banks face a grim truth about their already-slumping profits: the worst is yet to come.

Beginning with Lehman Brothers on Thursday, major investment banks and securities firms will begin reporting what are likely to be their weakest quarterly earnings in years.

The results will show how hard the recent turmoil in the financial markets continues to hit the even the mightiest Wall Street banks, and could cast doubt over the future of several chief executives. Multibillion-dollar write-offs have already prompted Merrill Lynch and Citigroup to replace their chief executives.